- The stock price of Ovid Therapeutics Inc. (NASDAQ: OVID) increased by over 5% pre-market. This is why it happened.
The stock price of Ovid Therapeutics Inc. (NASDAQ: OVID) – a biopharmaceutical company committed to developing medicines that transform the lives of people with rare neurological diseases – increased by over 5% pre-market. Investors appear to be responding to the company announcing the closing of the Royalty, License and Termination agreement under which Takeda Pharmaceutical secured global rights from Ovid to develop and commercialize the investigational medicine soticlestat (TAK-935/OV935) for the treatment of developmental and epileptic encephalopathies, including Dravet syndrome and Lennox-Gastaut syndrome.
At closing, Ovid received an upfront payment of $196 million and is eligible to receive up to an additional $660 million upon achieving development, regulatory and sales milestones. Plus Ovid will receive tiered double-digit royalties, up to 20% on sales of soticlestat, if approved and commercialized. And Takeda has assumed sole responsibility for further worldwide development and commercialization and Ovid no longer has any financial obligation to Takeda under the original collaboration agreement, including for milestone payments or any future development and commercialization costs.
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