By Connor Hart

Shares of Ovid Therapeutics climbed after the company swung to a profit in the fourth quarter and said it would expand one of its therapies to explore additional use cases.

The stock rose 22%, to $2.48, in premarket trading Wednesday. Through Tuesday's close, shares have more than quadrupled over the past year.

The biopharmaceutical company swung to a profit of $9.66 million from a loss of $9.28 million a year earlier. Quarterly earnings of 6 cents a share topped analyst expectations for a loss of 12 cents a share, according to FactSet.

Total revenues of $718,000 came in ahead of Wall Street models for about $100,000.

Chief Executive Meg Alexander said the company is making progress to develop medicines for brain disorders.

Ovid reported what it called favorable topline safety, tolerability and pharmacokinetics from a study of one of its therapies, OV329. The company also said it will add complementary development programs for the treatment, expanding into tuberous sclerosis complex seizures and infantile spasms.

The expansion will be funded by a $60 million private placement, also disclosed Wednesday. Under the terms of the private investment in public equity financing agreement, Ovid will sell about 19.2 million shares of its common stock for $2.01 each. It will also sell pre-funded warrants to purchase up to 10.7 million shares of common stock at the same price.

The financing is being led by Point72, with participation from existing investors, including Adage Capital Management and ADAR1 Capital Management.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 18, 2026 06:56 ET (10:56 GMT)

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