• Ovid Therapeutics Inc (NASDAQ: OVID) has announced to discontinue the development of OV101 (gaboxadol), a delta (δ)-selective GABAA receptor agonist, in Angelman syndrome and Fragile X syndrome.

• The company says that while OV101 was well tolerated, with no significant safety signals observed, the company believes that efficacy outcomes observed in these trials do not support its further development.

• Now, the company plans to prioritize its resources to focus on developing its early-stage pipeline, including OV882, a short hairpin RNA therapy targeting UBE3A gene expression in neurons, as a potential treatment for Angelman syndrome.

• Following these updates, Ovid reiterates its previous guidance of anticipated quarterly operating expenses, to be in the range of $8 million to $10 million starting in the second quarter of 2021.

• This focus is supported by the significant resources delivered through the soticlestat agreement with Takeda Pharmaceutical Co Ltd (NYSE: TAK) to treat developmental and epileptic encephalopathies.

• Under the agreement, Ovid received or is eligible to receive an upfront payment of $196 million, up to $660 million in milestone payment.

• Proforma cash, cash equivalents, and short-term investments as of December 31, 2020, stand over $250 million.

• Price Action: OVID shares are down 2.38% at $3.69 in the premarket trading on the last check Monday.

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