Monday, Takeda Pharmaceutical Co Ltd ( TAK ) announced topline data from its SKYLINE and SKYWAY Phase 3 studies of Soticlestat (TAK-935) for the treatment of Dravet syndrome (DS) and Lennox-Gastaut syndrome (LGS). 

In March 2021, Takeda and Ovid Therapeutics Inc ( OVID ) entered into an exclusive agreement under which Takeda secured global rights from Ovid to develop and commercialize soticlestat for developmental and epileptic encephalopathies.

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At that time, Takeda said it would assume sole responsibility for further worldwide development and commercialization, and Ovid would no longer have any financial obligation to Takeda under the original collaboration agreement.

Ovid received an upfront payment of $196 million and is eligible to receive up to an additional $660 million as milestones.

After reviewing the totality of the soticlestat data and discussing it with regulators, Takeda will determine how to proceed with the next regulatory steps.

At that time, Ovid will update its guidance relative to any potential milestones and royalty payments pursuant to its royalty, license, and termination agreement with Takeda.

“After selling our rights back to Takeda three years ago, we have built an exciting and differentiated pipeline, which we believe will generate multiple value-creating opportunities in the near term. Our R&D and financial strategy is independent of soticlestat’s outcome. We will advance our pipeline thoughtfully and continue to apply fiscal discipline to achieve our goals,” remarked Jeremy Levin, Chairman and CEO of Ovid.

Ovid added that the company will prioritize and pursue its programs with financial discipline and expects its cash runway to last into the first half of 2026.

Price Action: OVID shares are down 64.1% at $1.18 during the premarket session at last check Monday.