- Ovid Therapeutics (NASDAQ:OVID) has slipped 3.2% postmarket after a downgrade to Neutral at Cantor Fitzgerald, pointing to decisions to discard development of approaches to Angelman syndrome and Fragile X syndrome.
- The company is refocusing on development of its early-stage pipeline, including OV882, a short hairpin RNA therapy targeting UBE3A gene expression in neurons as a potential Angelman treatment. It's scrapping OV101 (gaboxadol) in Angelman syndrome.
- And it doesn't plan to initiate further studies of OV101 in Fragile X.
- And now investors practically need "binoculars" to see when the company can generate value-creating events in the clinic, Cantor says.
- The shares are trading around pro forma cash, and Cantor doesn't expect that to change until there's more visibility on the path for its early-stage pipeline.
- It's cutting its rating to Neutral from Overweight, and trimming the price target to $4 from $8, cutting implied upside to 8%.