Stock Alert: Ovid Therapeutics Rises 6% After Partnering With Angelini Pharma

(RTTNews) - Shares of Ovid Therapeutics Inc. (OVID) are climbing more than 6% Monday morning after the company said it has entered into an agreement with an Italian family-owned drug company, Angelini Pharma S.p.A. to manufacture and commercialize Ovid's OV101.

As per the agreement, Angelini Pharma obtains the rights to make and sell OV101 (gaboxadol), for the potential treatment of Angelman syndrome in the European Union and other countries in the European Economic Area, and also Switzerland, Turkey, the United Kingdom, and Russia.

According to the deal, Ovid will receive an upfront payment of $20 million and is eligible to receive up to an additional $212.5 million in payments upon the achievement of development, manufacturing, and sales milestones for the initial indication (Angelman syndrome). Ovid will retain commercial rights to OV101 and is also eligible for double-digit royalties on net sales if the drug is successfully sold.

Ovid stock is currently trading at $7.97. It has traded in the range of $1.74- $9.40.