In an attempt to extend its financial runway through 2026, Ovid Therapeutics announced this week that it would be selling a 13% share of royalties and sales of its anti-seizure medication, soticlestat, to Ligand Pharmaceuticals.
In exchange, Ovid will receive a $30 million payment, with additional milestone payments and royalties if soticlestat achieves regulatory approval and commercial success. Before the Ligand deal, Ovid says its funds were projected to cover operations until 2025, including five anticipated pipeline program milestones. With Ligand's added capital injection, Ovid now foresees its financial runway extending into 2026, facilitating the expansion of its clinical initiatives.
Soticlestat, a cholesterol enzyme inhibitor, aims to reduce seizure susceptibility and enhance seizure control. It has shown promise in pivotal phase 3 trials for Lennox-Gastaut syndrome and Dravet syndrome. Ovid licensed the rights to the drug to Takeda two years ago in deal worth up to $856 million. At the time, soticlestat was in the midst of phase 3 trials, and Takeda took over global commercialization and marketing rights for the drug.
Takeda anticipates regulatory filings for soticlestat next year.
