You are probably not familiar with the experimental drugs OV101 or OV935, not unless that is you are a researcher into rare neurological conditions, especially those concerning epileptic encephalopathy or neuro-developmental disorders in adolescents. This is not surprising, since few people worldwide are concerned with this specialised but vital part of the wider fields of medical and pharmaceutical research. However it is upon such new treatments as OV101 and OV935 that the success of the forthcoming Ovid Therapeutics IPO rests. Ovid Therapeutics is a bio-pharmaceutical company which specialises in developing drug treatments for rare neurological disorders. The last decades have seen great advances made in the understanding of the way human neurology works at its basic biological level and Ovid has sought to exploit the opportunities offered by this increased understanding to develop new treatments for hitherto little understood conditions. You should note that Ovid has yet to produce products that can be sold commercially. For example the products mentioned above are the principle candidates for ultimate development into a saleable product, and as yet OV101 is only at its Phase 2 trial, while a phase 1b trial for OV935 is expected to begin in 2017. The success or failure of an Ovid Therapeutics IPO could well be influenced by this stage in the company’s products’ development. Considering that the cost of pharmaceutical research is high and that Ovid has amassed considerable debts while going through this process, it is understandable that some analysts are advising caution. It is a sadly true fact that not all potential treatments turn into strongly performing products.
The Ovid Therapeutics IPO has been a certainty since the company filed on April 11th 2017, and much more information has subsequently come to light about what we might expect from this initial public offering. Ovid will list on the New York Stock Exchange and offer five million shares. The cost of these shares is expected to vary between US$15 and US$17. There are three quarters of a million additional shares available because the company has provided an overallotment option to be exploited by interested underwriters who may include William Blair and JMP Securities. The Ovid Therapeutics IPO is expected to raise US$71.6 million, rising to US$82.8 million if the underwriters take advantage of the overallotment option mentioned above. The initial prospects for the IPO seemed promising, with insiders stated to be intent on acquiring $US20 million of the shares. Intentions are, of course, neither deeds nor promises, but it remains a promising sign of what the IPO might yield. Some estimates predict a final market price of USS405 million for the company after the IPO. However yet again the voices of caution should be heard. The products are still at an experimental stage and success is by no means assured. Despite the acknowledged fact that our understanding of how the brain works at a fundamental level has improved massively over recent years, there is still much to be discovered. For the sake of those who might benefit from OV101 and OV935, let us hope that Ovid’s research is on the right lines.
Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.