Latest news with #OvidTherapeutics
Yahoo
25-07-2025
- Business
- Yahoo
Ovid Therapeutics Sells Ganaxolone Royalty Rights for $7M to Immedica Pharma
Ovid Therapeutics Inc. (NASDAQ:OVID) is one of the best penny stocks under $1 to buy now. On June 25, Ovid Therapeutics announced a definitive agreement with Immedica Pharma AB. Under this agreement, Ovid will sell its future royalty rights related to sales of ganaxolone outside of China for $7 million in cash. In 2024, Ovid recorded ~$566,000 in ganaxolone royalty revenues. This transaction will not impact Ovid's current pipeline, as the company has not been actively developing ganaxolone. The sale of royalty rights to Immedica includes those stemming from an exclusive patent license agreement Ovid entered into with Marinus Pharmaceuticals Inc. in February 2022. A close-up of a medicine bottle, illustrating the efforts in providing adult solid tumor treatment options. Under that prior agreement, Ovid was entitled to receive royalties on ganaxolone sales for CDKL5 deficiency disorder/CDD in the US and Europe. In a related development, Immedica announced the completion of its acquisition of Marinus in February this year. Immedica has also agreed to acquire or license Ovid's global ganaxolone intellectual property/IP portfolio and amend the existing license to cover additional indications. Ovid Therapeutics Inc. (NASDAQ:OVID) is a biopharmaceutical company that develops impactful medicines for patients and families with epilepsies and seizure-related neurological disorders in the US. While we acknowledge the potential of OVID as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-06-2025
- Business
- Yahoo
Are These 2 'Strong Buy' Rated Growth Stocks Buys Right Now?
Investing in biotech penny stocks is fraught with volatility, regulatory hurdles, and uncertain clinical results. Penny stocks are companies that trade for less than $5 per share. However, for those with a high risk tolerance, these small-cap stocks can provide outsized returns, particularly when scientific breakthroughs or U.S. Food and Drug Administration (FDA) approvals result in explosive gains. With Wall Street analysts issuing 'Strong Buy' ratings on these two high-potential plays, let's dig in to see whether these growth stocks could deliver on their promises. With a market capitalization of $21 million, Ovid Therapeutics is a small clinical-stage biopharmaceutical company focused on developing treatments for rare neurological disorders. Ovid's business model is centered on central nervous system (CNS) disorders, which are a challenging therapeutic area. Its pipeline includes novel compounds in early- to mid-stage development that target epilepsy and other genetically based neurological disorders. OVID stock has fallen 67.6% year-to-date (YTD), compared to the S&P 500 Index's ($SPX) gain of 1.6%. Dear Tesla Stock Fans, Mark Your Calendars for June 30 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio This Options Tool Can Show You How to Trade Tesla Stock Ahead of Robotaxi Day Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Ovid currently has no FDA-approved products on the market. However, Wall Street analysts have called OVID a "Strong Buy," with all six analysts covering the stock rating it as such. Still, the company has also received a delisting notice from Nasdaq for failing to maintain the minimum bid price of $1.00 per share. Ovid has until Aug. 11, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive trading days. Ovid's pipeline is small in size but very targeted. The most closely watched candidate is OV329, a highly selective small-molecule inhibitor of GABA aminotransferase (GABA-AT). OV329 is intended to treat epilepsy that has not responded to previous treatments. In preclinical models, the candidate has shown promise in controlling seizures while causing fewer side effects than existing treatments such as vigabatrin. Ovid Therapeutics anticipates Phase 1 trial results in the third quarter of 2025. The company has a good chance of its stock ticking upwards if the Phase 1 topline results for OV329 turn out positive. Ovid's other candidate is OV350, a next-generation KCC2 modulator that is also being tested in a Phase 1 trial. The company generated $130,000 in revenue from royalty agreements during Q1. At the end of the quarter, its cash, equivalents, and marketable securities totaled $43 million. This gives the company an estimated runway through the second half of 2026. Ovid has received a 'Strong Buy' rating on Wall Street because of its rich pipeline of rare disease treatments. The stock may appeal to long-term aggressive investors who are comfortable with volatility and have a strong interest in innovative science. However, I believe investors should wait until Ovid either clears the $1 delisting threshold or proves its clinical strategy with positive results. Analysts have an average target price of $2.88 for the stock, which implies upside potential of 860% from current levels. The Street-high price estimate stands at $4 for OVID stock. With a market cap of $609 million, Nuvation Bio is a clinical-stage biotech company that develops targeted oncology treatments for challenging cancers with limited treatment options. However, it may soon release a revenue-generating product to the market this year. NUVB stock is down 27.7% YTD, compared to the overall market gain. Nuvation Bio's pipeline includes programs addressing a variety of oncology targets, including breast, ovarian, and lung cancer. Its pipeline currently consists of four core programs: taletrectinib (ROS1 inhibitor), NUV-1511 (drug-drug conjugate), safusidenib (brain-penetrant IDH1 inhibitor), and NUV-868 (BET inhibitor). Taletrectinib, Nuvation's lead candidate for the treatment of ROS1+ and advanced non-small cell lung cancer, has already been approved in China and the United States. The company hopes to begin commercializing taletrectinib in mid-2025. In March, the firm secured $250 million in non-dilutive financing from Sagard Healthcare Partners, as well as $150 million in royalty financing and $50 million in debt, subject to approval. Nuvation also has the option to secure an additional $50 million in debt until June 30, 2026 if it completes its first commercial sale in the United States. Safusidenib is currently in Phase 2 trials, and NUV-1511 is in Phase ½ trials. The company intends to provide updates for both during the second half of 2025. Nuvation ended Q1 with $461.7 million in cash, cash equivalents, and marketable securities. A favorable FDA decision could open up significant market opportunities for the company. Nuvation Bio's late-stage pipeline, strong cash position, and clear commercialization path make it an appealing biotech growth stock to buy right now. However, the company's ability to generate profits after commercialization may take years, making it an appropriate choice for those with a high risk tolerance and a longer investment horizon. Overall, Wall Street rates NUVB stock a 'Strong Buy.' Of the seven analysts covering the stock, six rate Nuvation as a 'Strong Buy' while one recommends a 'Moderate Buy" rating. The average price target of $7.17 suggests that NUVB stock could rally around 258% over the next 12 months. The high price estimate of $10 suggests a gain of 400% over current levels. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
13-05-2025
- Business
- Yahoo
Ovid Therapeutics (OVID) Reports Q1 Loss, Tops Revenue Estimates
Ovid Therapeutics (OVID) came out with a quarterly loss of $0.14 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.13, delivering a surprise of 18.75%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Ovid Therapeutics , which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $0.13 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 96.97%. This compares to year-ago revenues of $0.15 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ovid Therapeutics shares have lost about 67.7% since the beginning of the year versus the S&P 500's decline of -0.6%. While Ovid Therapeutics has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ovid Therapeutics: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.14 on $0.09 million in revenues for the coming quarter and -$0.57 on $0.38 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, CureVac N.V. (CVAC), is yet to report results for the quarter ended March 2025. This company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +52.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CureVac N.V.'s revenues are expected to be $14.47 million, up 7.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ovid Therapeutics (OVID) : Free Stock Analysis Report CureVac N.V. (CVAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-03-2025
- Business
- Yahoo
We're A Little Worried About Ovid Therapeutics' (NASDAQ:OVID) Cash Burn Rate
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although software-as-a-service business lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt. Given this risk, we thought we'd take a look at whether Ovid Therapeutics (NASDAQ:OVID) shareholders should be worried about its cash burn. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. Let's start with an examination of the business' cash, relative to its cash burn. See our latest analysis for Ovid Therapeutics A company's cash runway is calculated by dividing its cash hoard by its cash burn. As at September 2024, Ovid Therapeutics had cash of US$63m and no debt. Importantly, its cash burn was US$58m over the trailing twelve months. Therefore, from September 2024 it had roughly 13 months of cash runway. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. The image below shows how its cash balance has been changing over the last few years. In our view, Ovid Therapeutics doesn't yet produce significant amounts of operating revenue, since it reported just US$632k in the last twelve months. Therefore, for the purposes of this analysis we'll focus on how the cash burn is tracking. Over the last year its cash burn actually increased by 34%, which suggests that management are increasing investment in future growth, but not too quickly. That's not necessarily a bad thing, but investors should be mindful of the fact that will shorten the cash runway. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. While Ovid Therapeutics does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations. Ovid Therapeutics' cash burn of US$58m is about 157% of its US$37m market capitalisation. That suggests the company may have some funding difficulties, and we'd be very wary of the stock. On this analysis of Ovid Therapeutics' cash burn, we think its cash runway was reassuring, while its cash burn relative to its market cap has us a bit worried. Considering all the measures mentioned in this report, we reckon that its cash burn is fairly risky, and if we held shares we'd be watching like a hawk for any deterioration. On another note, Ovid Therapeutics has 5 warning signs (and 3 which don't sit too well with us) we think you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
