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Ovid Therapeutics, months removed from a crushing clinical trial disappointment, said Wednesday that it is trading its most promising drug for enough cash to fund its ambitions in rare neurological diseases.

In selling its rights to a late-stage treatment to Japanese pharma giant Takeda, Ovid will pocket $196 million up front — an amount that exceeds the company’s entire market value as of Tuesday’s close. Ovid is entitled to as much as $660 million more depending on the drug’s progress, and the company is in line for royalties on future sales of the medicine.

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