Ovid Therapeutics Secures $60M After Positive Epilepsy Drug Data

Ovid Secures $60M Private Placement to Fund Expansion

Ovid Therapeutics has secured $60 million in gross proceeds from a private placement, strengthening its balance sheet to expand development of its lead drug candidate, OV329. The financing, announced March 18, 2026, involves the sale of 19.1 million shares at $2.01 per share and pre-funded warrants for an additional 10.7 million shares. These funds are earmarked to advance OV329 into new clinical programs for tuberous sclerosis complex (TSC) and infantile spasms (IS), two severe epileptic disorders with significant unmet medical need.

This capital injection substantially de-risks Ovid's clinical strategy. As of December 31, 2025, the company held $90.4 million in cash and marketable securities. The additional funding, along with a potential $53.9 million from the exercise of outstanding warrants by April 17, 2026, provides a robust financial runway into 2029, allowing the company to run multiple clinical programs in parallel.

OV329 Shows Favorable Safety Profile in 7 mg Cohort

The financing follows the release of positive topline data from a Phase 1 study of OV329. The 7 mg dose cohort demonstrated a favorable safety, tolerability, and pharmacokinetic profile with no treatment-related adverse events. These results build on previous findings from 3 mg and 5 mg doses, which showed that OV329's biological activity matched or exceeded that of vigabatrin, a first-generation therapy, without evidence of the retinal accumulation that has limited vigabatrin's use.

We believe today’s data continue to support OV329’s potential best-in-category profile and give us further conviction to expand OV329 into two complementary indications.

— Meg Alexander, President and Chief Executive Officer.

The successful safety findings at a higher dose give Ovid dose optionality as it advances the drug into patient studies, providing a strong foundation for its expanded clinical ambitions.

Clinical Pipeline Accelerates with Phase 2 Trial Set for Q2 2026

With both strong clinical data and new funding, Ovid is accelerating its development timeline. The company plans to initiate a Phase 2 randomized, placebo-controlled trial for OV329 in treatment-resistant focal onset seizures (FOS) during the second quarter of 2026. The newly funded programs will also begin soon, with a proof-of-concept study for TSC-associated seizures scheduled for the fourth quarter of 2026 and a safety study for infantile spasms in 2027.

This strategy creates a steady stream of near-term clinical milestones over the next 18 to 24 months. By expanding the applications for OV329 and advancing its KCC2 portfolio, which includes the recently cleared Phase 1 candidate OV4071, Ovid is positioned to deliver multiple data readouts and potentially create significant value for investors.