Ovid Therapeutics Inc. (NASDAQ:OVID) said Wednesday it has raised $60 million through a private placement to support the continued development of its epilepsy drug candidate OV329, including expanding research into seizures linked to tuberous sclerosis complex and infantile spasms. The biotechnology company, currently valued at about $262 million, has seen its shares climb roughly 337% over the past year and was recently trading around $2.01.
The company also released new data from the 7 mg dose cohort of OV329, a GABA-aminotransferase inhibitor. According to Ovid, no treatment-related adverse events were observed. Across both single and multiple ascending dose groups, the study recorded 19 unrelated adverse events, all described as mild and temporary.
Ovid plans to begin a Phase 2 randomized, placebo-controlled trial in the second quarter of 2026 to test two dose levels of OV329 in patients with treatment-resistant focal onset seizures. Additional studies are planned, including a proof-of-concept trial targeting seizures associated with tuberous sclerosis complex expected to begin in the fourth quarter of 2026, and a separate study for infantile spasms scheduled for 2027.
Meanwhile, the company’s OV4071 program—an oral KCC2 direct activator—has received approval from a Human Research Ethics Committee and acknowledgment from Australia’s Therapeutic Goods Administration. This clearance activates a 30-day window for holders of the company’s Series A Warrants to exercise their options, which expire on April 17, 2026. If all warrants are exercised, Ovid could receive up to $53.9 million in additional gross proceeds.
As of December 31, 2025, Ovid reported $90.4 million in cash, cash equivalents and marketable securities, which it believes will be sufficient to fund operations into late 2028. If the outstanding warrants are fully exercised, the company said its financial runway could extend into 2029.
The private placement includes the issuance of 19,154,321 common shares priced at $2.01 each, along with pre-funded warrants allowing investors to purchase up to 10,701,710 additional shares at $2.009 per warrant.
For the fourth quarter ended December 31, 2025, Ovid reported net income of $9.7 million, compared with a net loss of $9.3 million in the same period a year earlier. The quarterly profit was largely driven by a $21 million gain tied to a revaluation of a long-term equity investment. Despite the positive quarter, the company remains unprofitable over the past 12 months, reporting a loss per share of $0.50, and analysts do not expect profitability this year.
In other developments, Ovid recently announced the $60 million private investment in public equity (PIPE) financing led by Point72, with participation from existing investors including Adage Capital Management and RA Capital Management. The company intends to use the funds to accelerate its pipeline development.
Ovid also reported encouraging results from a Phase 1 trial of OV350, described as the first KCC2 direct activator tested in humans. The study met its primary safety and pharmacokinetic goals and reported no serious treatment-related adverse events. Conducted with 16 healthy volunteers, the trial demonstrated a favorable safety profile, marking another step forward in the company’s clinical development efforts.