Ovid Therapeutics Reports Second Quarter 2021 Financial Results and Corporate Highlights
- Company ends Q2 ’21 with cash and cash equivalents of
- Recent appointments to Company leadership strongly position
Ovidto advance current and future neuroscience programs Ovidis actively pursuing business development opportunities to complement its neuroscience pipeline
“The second quarter was extremely productive for
Michael Poole, neuroscience innovator, joined the board of directors. Dr. Poolebrings expertise from a 30-year career spanning neuroscience development and investment positions at Arch Ventures, Biomatics Capital, AstraZeneca, Pfizer, Wyeth and from serving in the Office of the President at The Bill and Melinda Gates Foundation, among others.
- Executive appointments deepen management capability of senior team.
Ovidinitiated planning and elevation of several executives, who will assume expanded roles. During the second quarter of 2021, Jeffrey Ronawas elevated from his role as acting chief business officer to become the chief business and financial officer. After the second quarter, Jason Tardiowas promoted to chief operating officer from his prior position as chief commercial officer and Dr. Claude Nicaisewas elevated to head of Research and Development.
- Recognized life science thought leaders joined Ovid’s
Scientific & Clinical Advisory Board. The Company appointed Joy Cavagnaro, Ph.D., and Bruce Sullenger, Ph.D., to its Scientific and Clinical Advisory Board, chaired by professor Robert Langer. Dr. Cavagnarocontributes extensive pre-clinical and regulatory acumen, and Dr. Sullengerprovides deep translational research insight related to central nervous system conditions and disorders.
- Operating expenses were
$14.3 millionin the second quarter of 2021 and non-GAAP Adjusted operating expenses (which excludes non-recurring expenses and non-cash expenses) were $10.0 millionfor the second quarter, which was within the Company’s guidance of $8.0- $10.0 millionfor the quarter. Ovidexpects operating expenses (less non-recurring expenses and non-cash expenses) to remain in the $8.0- $10.0 millionrange for the remaining quarters of 2021.1
- Two, pivotal Phase 3 clinical studies of soticlestat for Dravet syndrome and Lennox-Gastaut syndrome, operated and funded by Takeda, are expected to commence in 2021. If successful, Takeda estimates that soticlestat could receive approval in its fiscal year 2023.
Second Quarter 2021 Financial Results
- Revenue was zero during the second quarter of 2021, as it was for the same period in 2020.
- Research and development expenses were
$7.7 millionfor the quarter ended June 30, 2021, as compared to $16.0 millionfor the same period in 2020. The decrease of $8.3 millionwas primarily due to the discontinuation of the clinical development of OV101 in Angelman syndrome and Fragile X syndrome. Additionally, Ovidis no longer responsible for research and development expenses related to soticlestat. Ovidterminated the previous agreement for soticlestat with Takeda and entered a new royalty, license and termination agreement for the candidate with Takeda. Going forward, Takeda will be responsible for all research and development expenses, and Ovidis entitled to milestone and royalty payments upon regulatory approval and commercialization of soticlestat.
- General and administrative expenses were
$6.6 millionfor the quarter ended June 30, 2021, as compared to $7.1 millionthe same period in 2020. The decrease of $0.5 millionwas primarily due to a decrease in legal and professional fees of $1.1 million, offset by an increase in payroll and payroll-related expenses of $0.7 million.
- Net loss was
$15.8 millionfor the quarter ended June 30, 2021, resulting in basic and diluted net loss per share of $0.23. Net loss was $22.6 millionfor the quarter ended June 30, 2020, resulting in basic and diluted net loss per share attributed to common stockholders of $0.41.
Non-GAAP Financial Measures
This press release presents Non-GAAP Adjusted Operating Expenses on a historical and projected basis. For the periods presented, Non-GAAP Adjusted Operating Expenses exclude from Operating Expenses, as calculated and presented in accordance with GAAP, two non-recurring and one non-cash item: severance expenses, the wind-down of clinical development costs associated with OV101, and stock-based compensation, respectively. Non-GAAP Adjusted Operating Expenses is a financial measure that has not been prepared in accordance with GAAP. Accordingly, investors should consider Non-GAAP Adjusted Operating Expenses in addition to, but not as a substitute for, Operating Expenses that we calculate and present in accordance with GAAP. Among other things, our management uses Non-GAAP Adjusted Operating Expenses to [establish budgets and operational goals and to manage our business]. Other companies may define or use this measure in different ways. We believe that the presentation of Non-GAAP Adjusted Operating Expenses provides investors and management with helpful supplemental information relating to operating performance and trends. A table reconciling Non-GAAP Adjusted Operating Expenses to Operating Expenses for all historical periods presented is included below under the heading “Reconciliation of Non-GAAP Adjusted Operating Expenses to Operating Expenses.” A quantitative reconciliation of projected Non-GAAP Adjusted Operating Expenses to Operating Expenses is not available without unreasonable effort primarily due to our inability to predict with reasonable certainty the amount of future stock-based compensation expense and non-recurring expenses.
About Ovid Therapeutics
Ovid Therapeutics Inc. is a New York-based biopharmaceutical company using its BoldMedicine® approach to develop medicines that transform the lives of patients with neurological disorders.
This press release includes certain disclosures that contain “forward-looking statements,” including, without limitation, statements regarding Ovid’s expectations regarding its operating expenses and broad strategic initiatives, Ovid’s pursuit of business development opportunities, the development of Ovid’s product candidate pipeline, and the clinical development and potential regulatory approval of soticlestat, and potential milestone payments that may become due to
Condensed Consolidated Statement of Operations
|For The Three
|For The Three
|For The Six
|For The Six
|License and other revenue||$||-||$||-||$||12,382,779||$||-|
|License revenue - related party||-||-||196,000,000||-|
|Research and development||$||7,683,668||$||16,032,945||$||23,932,581||$||30,658,313|
|General and administrative||6,629,158||7,108,742||22,205,707||12,777,759|
|Total operating expenses||14,312,826||23,141,687||46,138,288||43,436,072|
|(Loss) income from operations||(14,312,826||)||(23,141,687||)||162,244,491||(43,436,072||)|
|Other (expenses) income, net||(2,517||)||590,491||(52,250||)||854,786|
|(Loss) income before provision for income taxes||(14,315,343||)||(22,551,196||)||162,192,241||(42,581,286||)|
|Provision for income taxes||1,473,084||-||1,973,361||-|
|Net (loss) income||$||(15,788,427||)||$||(22,551,196||)||$||160,218,880||$||(42,581,286||)|
|Net (loss) income per share, basic||$||(0.23||)||$||(0.41||)||$||2.32||$||(0.77||)|
|Net (loss) income per share, diluted||$||(0.23||)||$||(0.41||)||$||2.30||$||(0.77||)|
|Weighted-average common shares outstanding, basic||67,818,366||55,607,110||66,953,431||55,161,360|
|Weighted-average common shares outstanding, diluted||67,818,366||55,607,110||67,565,761||55,161,360|
|Selected Condensed Balance Sheet Data|
|Cash, cash equivalents and short-term investments||$||212,166,565||$||72,033,930|
|Total stockholder's equity||206,709,513||43,631,656|
|1Working capital defined as current assets less current liabilities|
Reconciliation of Non-GAAP Adjusted Operating Expenses to Operating Expenses
|Non-Recurring and Non-Cash Items Included in|
|Stock Based Compensation||1,257,344|
|Wind-down of OV101 Clinical Costs||1,702,913|
|Non-GAAP Operating Expenses||$||10,047,355|
Investors and Media:
Investor Relations & Public Relations
1References in this press release to “Non-GAAP Adjusted Operating Expenses” mean our total operating expenses, as calculated and presented in accordance with
Source: Ovid Therapeutics Inc.