Ovid Therapeutics Inc. (Nasdaq: OVID), a New York-based biopharmaceutical company developing small molecule therapies for neurological disorders, announced a USD 60 million private placement to fund the expansion of its lead epilepsy candidate, OV329, into two additional indications: tuberous sclerosis complex and infantile spasms. The PIPE financing, expected to close on or about March 19, 2026, follows an earlier USD 175 million private placement completed in October 2025, reflecting the company's ongoing capital requirements as it broadens OV329's clinical development program across multiple developmental and epileptic encephalopathies.
Under the terms of the securities purchase agreement, Ovid is selling 19,154,321 shares of common stock at USD 2.01 per share alongside pre-funded warrants to purchase up to 10,701,710 additional shares at a purchase price of USD 2.009 per pre-funded warrant. The pre-funded warrants carry an exercise price of USD 0.001 per share and are immediately exercisable. Point72 led the financing, with participation from existing investors Adage Capital Management, ADAR1 Capital Management, Affinity Asset Advisors, Ally Bridge Group, Balyasny Asset Management, Coastlands Capital, Eventide Asset Management, Janus Henderson Investors, and RA Capital Management. Leerink Partners served as lead placement agent, with Oppenheimer & Co. and LifeSci Capital acting as co-placement agents. The press release did not indicate participation by company insiders.
Company overview and pipeline
Ovid Therapeutics is a New York-based biopharmaceutical company focused on developing targeted small molecule candidates that modulate factors involved in neuronal hyperexcitability across multiple neurological and neuropsychiatric disorders. The company's lead asset, OV329, is a next-generation GABA-aminotransferase inhibitor under development for treatment-resistant focal onset seizures and developmental and epileptic encephalopathies, including tuberous sclerosis complex and infantile spasms. The proceeds from this financing will support the expansion of OV329 into those additional indications. Specific timing for the next clinical milestone for OV329 in these new indications was not disclosed in the press release.
Beyond OV329, Ovid is developing OV4071 and a library of related compounds that directly activate the KCC2 transporter, targeting multiple central nervous system disorders. The KCC2 program originated from an exclusive license agreement with AstraZeneca completed in January 2022, under which Ovid paid USD 5 million in cash and USD 7.5 million in common stock, with AstraZeneca eligible for development and commercial milestones and royalties. Ovid's earlier pipeline assets have largely been divested or out-licensed as the company has narrowed its focus toward epilepsy. In June 2025, Ovid sold its worldwide ganaxolone royalty rights and licensing to Immedica Pharma AB for USD 7.0 million. The company's former collaboration with Takeda on soticlestat (TAK-935/OV935) for Dravet syndrome and Lennox-Gastaut syndrome was restructured in 2021 in a deal valued at up to approximately USD 856 million in milestones and royalties, with Takeda assuming Ovid's 50% global share. Previously completed clinical trials include a Phase III study of OV101 (gaboxadol) in Angelman syndrome and a Phase II open-label extension of TAK-935 in rare epilepsies.
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