Contribute Try STAT+ Today

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.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!

GET STARTED

What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.