Ovid Therapeutics (OVID) Q3 2024 earnings summary

Executive summary

• Focused on developing small molecule medicines for brain conditions with unmet need, with three active programs in clinical or preclinical stages.

• Pipeline includes OV329 (GABA-AT inhibitor), OV350 (KCC2 activator), and OV888/GV101 (ROCK2 inhibitor), with OV329 and OV888/GV101 in human studies and OV350 expected to enter Phase 1 in Q1 2025.

• Advanced OV329 Phase 1 study with plans to expand dosing cohorts based on positive safety data.

• Paused Phase 2 study of OV888/GV101 in CCM to incorporate insights from recent competitor trials.

• Organizational restructuring in June 2024 reduced workforce by 43% to prioritize programs and extend cash runway.

Financial highlights

• Cash, cash equivalents, and marketable securities totaled $62.7 million as of September 30, 2024, expected to fund operations into H2 2026.

• Net loss was $14.0 million for Q3 2024 and $17.2 million for the nine months ended September 30, 2024.

• Research and development expenses increased to $7.9 million in Q3 2024 (from $5.3 million in Q3 2023), driven by pipeline advancement.

• General and administrative expenses decreased to $5.5 million in Q3 2024 (from $6.8 million in Q3 2023) due to restructuring.

• Other income for the nine months was $34.0 million, primarily due to a $29.0 million gain from a reduction in royalty monetization liability.

Outlook and guidance

• Cash runway expected to support operations and clinical development for at least 12 months and into H2 2026.

• OV350 Phase 1 trial application planned for Q4 2024, with first-in-human studies in Q1 2025.

• OV329 Phase 1 topline data expected in 2025 after additional dosing cohorts.

• Multiple clinical and regulatory milestones targeted for OV329 and OV350 programs during the cash runway period.

• Paused Phase 2 program for OV888/GV101 in CCM to evaluate competitor data and optimize trial design.