TLDR
- Ovid secures $81M PIPE deal, total proceeds could hit $175M with warrants.
- Ovid pops 3.7% on $81M funding; $94M more possible via warrant conversion.
- Ovid lands $81M from top funds; shares surge, long-term runway secured.
- Ovid’s new $175M PIPE deal fuels clinical plans through 2028.
- Strong rally for Ovid as $81M PIPE sets stage for future $94M unlock.
Ovid Therapeutics Inc. opened the trading day with a sharp rally, reaching above $2.10 before settling around $1.70. The price still held a solid daily gain of 3.7%, fueled by a major funding announcement.
The company confirmed a private financing deal with initial proceeds of $81 million and a potential total of $175 million.
$81M Initial PIPE Funding Secured, Backed by Top Asset Managers
Ovid Therapeutics entered a securities purchase agreement for a private investment in public equity (PIPE) transaction. The initial closing, expected on or around October 6, 2025, is anticipated to deliver $81 million in gross proceeds. These funds will support Ovid’s current operating plan and clinical development pipeline into 2028.
A broad syndicate of prominent asset managers joined the financing round. New participants include Janus Henderson, RA Capital, and Blue Owl Healthcare Opportunities, among others. Existing backers such as ADAR1 Capital Management and Affinity Healthcare Fund also returned for this round.
Each investor will receive Series B non-voting convertible preferred stock and accompanying Series A and B warrants. These securities are structured for future conversion and exercise, unlocking additional capital over time. The offer is exempt from registration and will be followed by a resale registration process under SEC terms.
Warrant Conversion Could Bring an Additional $94M in Proceeds
The PIPE structure includes 57,722 shares of Series B Preferred Stock, convertible into 1,000 common shares each. Alongside these shares, investors receive Series A and Series B Warrants, exercisable following shareholder approval. The combined instruments could convert into 125 million common shares.
The Series A Warrants may be exercised once the company files an Investigational New Drug Application or its foreign equivalent for OV4071. The Series B Warrants have a longer term, expiring in 2030, and include a mandatory exercise clause based on share price milestones. Each warrant has an exercise price of $1.40 per share.
If all conditions are met and the warrants are fully exercised for cash, Ovid could receive an extra $94.3 million. This would bring total gross proceeds from the financing to $175 million. Ovid plans to use the funds for R&D, corporate costs, and working capital.
Stock Movement Reacts to Financing News and Long-Term Outlook
OVID shares jumped significantly during early trading before easing slightly. The price eventually stabilized around $1.70 but held a meaningful daily gain. The combination of secured capital and long-term runway helped lift market sentiment.
The market responded to the scale and structure of the financing, reflecting confidence in Ovid’s long-term development strategy. Investors acknowledged the support from prominent financial institutions, which signals strong institutional confidence. This PIPE deal positions Ovid with extended funding flexibility through 2028.
TD Cowen, Leerink Partners, and Oppenheimer & Co. are acting as placement agents for the offering. The company confirmed it will file to register resale of the securities in accordance with U.S. securities law. The deal excludes public solicitation and remains limited to qualified buyers under regulatory exemptions.
