OVID - Ovid to invest $10M in Graviton to license neuro disease drug candidate

2023-05-01 07:23:02 ET

Ovid Therapeutics ( NASDAQ: OVID ) signed a collaboration agreement with Graviton Bioscience to develop therapies for rare neurological diseases.

Ovid said the agreement supports its strategy of building a pipeline of first-in-class mechanisms for seizure-related disorders. Privately held Graviton specializes in drugs that inhibit Rho/Rho-associated coiled-coil containing protein kinase 2 (ROCK2).

The team-up will advance the development of GV101, which is currently in a phase 1 trial, along with other small-molecule compounds from a library of ROCK2 inhibitors.

Under the agreement, Ovid will pay $10M upfront in exchange for Series A preferred stock of Graviton.

Ovid will have rights to develop GV101 and a portfolio of ROCK2 inhibitors developed by Graviton in rare central nervous system indications worldwide, excluding China, Hong Kong, Macau and Taiwan.

Graviton will undertake development of the products till the end of phase 2 trials under the oversight of a joint development committee from both companies. Ovid will be responsible for development and commercialization costs, post-phase 2 development and selling the products.

Graviton will be eligible for royalties and retains rights to licensed products in all fields of study outside rare brain disorders, the companies noted.

Ovid's Chairman and CEO Jeremy Levin will serve on Graviton's board, the companies added.

"ROCK2 inhibition is a completely novel mechanism of action for the brain, which we believe will open new therapeutic avenues and change the fate of patients," said Levin.

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