A biopharmaceutical company focused on developing small molecule medicines for brain conditions, Ovid Therapeutics Inc announced a Private Investment in Public Equity (PIPE) financing expected to generate gross proceeds of up to $175 million, with an initial closing of approximately $81 million anticipated around October 6, 2025. announced a Private Investment in Public Equity (PIPE) financing expected to generate gross proceeds of up to $175 million, with an initial closing of approximately $81 million anticipated around October 6, 2025.

This initial capital is projected to fund the company's current operating plan and clinical pipeline, including candidates like OV329 and OV4071, into 2028. The financing saw strong participation from both new and existing investors, including Janus Henderson Investors, RA Capital Management, and ADAR1 Capital Management.

The PIPE structure involves the sale of an aggregate of three types of securities bundled together: shares of Series B non-voting convertible preferred stock, Series A Warrants (to purchase 38,481,325 shares), and Series B Warrants (to purchase 28,861,000 shares), with the conversion of the preferred stock and the exercise of all warrants subject to the company's stockholder approval. The Series A and Series B Warrants each have an exercise price of $1.40 per share, and the mandatory exercise of the Series A Warrants is contingent upon certain stock price triggers or the earlier of a specific date or the clearance of the first clinical application for the OV4071 product candidate. Assuming the cash exercise of all warrants, the company could receive an additional $94.3 million in gross proceeds, bringing the total potential gross proceeds to $175 million. The net proceeds from the initial closing, combined with Ovid’s existing cash, will be directed toward funding research and development, general corporate expenses, and working capital needs.