Benzinga | Jan 3, 2022 07:26AM EST

Ovid Therapeutics Expands Its Anti-Epileptic Franchise With AstraZeneca Licensing Pact

Ovid Therapeutics Inc (NASDAQ:OVID) has entered into an exclusive license agreement with AstraZeneca plc (NASDAQ:AZN) for a library of early-stage small molecules targeting the KCC2 transporter, including a lead candidate, OV350.

* The Company seeks to optimize and accelerate the development of these KCC2 transporter activators in epilepsies and potentially other neuropathic conditions.

* Under the agreement terms, AstraZeneca will receive an upfront payment of $5 million in cash and $7.5 million in shares of Ovid common stock.

* AstraZeneca is eligible to receive potential clinical development milestones of up to $8 million and regulatory milestones of up to $45 million.

* Total commercial milestones could reach $150 million, and tiered royalty payments range from the single digits up to 10% on net sales.

* AstraZeneca will have the right of the first negotiation to opt-in on a strategic collaboration at the time of proof of clinical efficacy.

* OV350 is an early-stage compound that has shown encouraging in-vitro and in-vivo proof of concept in resistant forms of epilepsy.

* The Company is also developing OV329, next-generation pregabalin for tuberous sclerosis and infantile spasms, which is expected to enter the clinic in 2022.

* OV350 is a small molecule that directly activates the KCC2 transporter, essential to seizure control.

* Price Action: OVID shares are down 0.31% at $3.21 during the premarket session on the last check Monday.