Ovid Therapeutics Inc. has entered into a definitive agreement with Immedica Pharma AB to sell its future royalty rights related to ganaxolone sales outside of China for $7 million in cash. The transaction strengthens Immedica's position in the rare disease market while providing Ovid with non-dilutive funding to support its ongoing operations.
Financial Terms and Strategic Impact
Under the agreement, Immedica will acquire 100% of the royalty rights held by Ovid, providing the biopharmaceutical company with a $7 million capital infusion. In 2024, Ovid recorded approximately $566,000 in ganaxolone royalty revenues. The company has not been pursuing development of ganaxolone, and the transaction has no impact on Ovid's current pipeline of programs.
The deal extends beyond royalty acquisition, with Immedica entering into an agreement to acquire or license the global ganaxolone intellectual property portfolio from Ovid. The Swedish rare disease company will assume financial responsibility for all costs related to the licensed IP once the amendment is finalized, further reducing Ovid's financial obligations.
Background and Regulatory Context
The royalty rights stem from Ovid's February 2022 exclusive patent license agreement with Marinus Pharmaceuticals related to ganaxolone use in CDKL5 deficiency disorder (CDD). Under that agreement, Ovid was eligible to receive royalties on ganaxolone sales for CDD in the United States and Europe. The timing of this transaction aligns with Immedica's February 2025 completion of its acquisition of Marinus Pharmaceuticals.
Ganaxolone is currently approved in the EU, Great Britain, the United States, and China for the adjunctive treatment of epileptic seizures associated with cyclin-dependent kinase-like 5 (CDKL5) deficiency disorder in patients 2 to 17 years of age. The medicine may be continued in patients 18 years of age and older.
Company Positioning
For Ovid, the transaction allows the New York-based biopharmaceutical company to focus resources on its core pipeline of novel, targeted small molecule candidates for neurological and neuropsychiatric disorders. The company is advancing OV329, a next-generation GABA-aminotransferase inhibitor for treatment-resistant seizures, and OV350, OV4071, and other compounds that directly activate the KCC2 transporter for multiple CNS disorders.
Immedica, headquartered in Stockholm, Sweden, focuses on commercializing medicines for rare diseases and specialty care products. The company serves patients in more than 50 countries through its global distribution network and employs approximately 140 people across Europe, the Middle East, and the United States. The acquisition further consolidates Immedica's position in rare neurology, adding to its therapeutic areas in rare metabolic, rare hematology & oncology, and specialty care.
