Last month, we wrote what amounted to a full-length essay on Ovid Therapeutics (Nasdaq: OVID). We can be verbose and struggle with brevity. So here’s an exercise that forces us to be concise: a rapid-fire update on several companies in our universe. This will be hard, but therapeutic.
Ovid Therapeutics (Nasdaq: OVID)
We have spent most of our time focused on Ovid’s GABA-AT epilepsy asset, OV329. However, based on our conversations with investors, the “big idea” potential of KCC2 activation is increasingly capturing investors’ attention. Next Tuesday, April 14th, Ovid is hosting a KCC2 Deep Dive R&D event that should provide fresh insight into the company’s first-in-class oral KCC2 activator, OV4071, as well as follow-on KCC2 activators. We are particularly interested in learning more about the company’s planned ketamine challenge study with OV4071. This study could provide early proof of mechanism and/or proof of concept that investors could find invaluable. In the meantime, Ovid’s stock continues to push higher, reinforcing our confidence that our 2026 prediction for the company will come true.
Eupraxia Pharmaceuticals (Nasdaq: EPRX)
There has been a flurry of sell-side initiations, update notes, and KOL calls on Eupraxia of late, all reinforcing growing investor interest in the company. Eupraxia’s ongoing Phase 2a open-label, dose-escalating RESOLVE study has provided investors with early evidence of EP-104GI’s efficacy, safety, and durability in treating eosinophilic esophagitis (EoE). As we mentioned before, mechanistically, there’s little doubt that fluticasone, when delivered locally, will reduce inflammation and eosinophil counts, which should lead to improvements in patient symptoms and quality of life. The Phase 2a data suggest EP-104GI is achieving exactly that; however, the key test, especially for patient-reported quality-of-life outcomes, will be whether EP-104GI can demonstrate this benefit compared to placebo. That answer is expected soon, as Eupraxia plans to report top-line data from the 120-patient randomized controlled trial (RCT) part of RESOLVE in 2H2026. If the data show that EP-104GI produces significant improvements in histology (peak eosinophils), tissue health (EoHSS), and patient-reported symptoms (SDI and DSQ), the likelihood of Phase 3 success becomes very high, and the stock should re-rate accordingly.
Satellos Biosciences (Nasdaq: MSLE)
Last month, Satellos released 56-day interim data from its open-label TRAILHEAD study of four adult Duchenne muscular dystrophy (DMD) men treated with SAT-3247. These four men had previously been treated with SAT-3247 in a separate study (CL-101), where they showed encouraging functional improvements from baseline in grip strength and lung function. When last month’s TRAILHEAD data indicated that these same four men, when treated again with SAT-3247, experienced slight erosion in grip strength and lung function relative to baseline over the subsequent 56 days, investors were underwhelmed, leading to a precipitous fall in the stock.
We believe the stock has been sufficiently punished. While the interim TRAILHEAD data were mixed, we are talking about only four patients, which probably shouldn’t be overanalyzed. The company plans to enroll more patients in TRAILHEAD and share additional study data in the coming months, including objective measures such as MRI and biomarkers, as well as updated functional data. Furthermore, we believe investors’ focus should be on the company’s RCT, BASECAMP, which is actively enrolling 51 DMD patients aged 7-9 and is expected to report top-line data before year-end. Despite last month’s confusing TRAILHEAD data, we anticipate that our fellow binary biotech degenerates will be drawn to the asymmetry of the top-line BASECAMP RCT readout. So whether it’s updated TRAILHEAD data in a few months or top-line BASECAMP data before year-end, we feel investors will return to Satellos, and the stock will rebound.
Protara Therapeutics (Nasdaq: TARA)
Last week, Protara filed an 8-K announcing that the 25th TARA–002-treated BCG-unresponsive non-muscle invasive bladder cancer (NMIBC) patient in the company’s ADVANCED-2 study had reached the six-month evaluable stage. The six-month complete response (CR) rate reported in the 8-K was 68%, consistent with the 68.2% reported in February at ASCO-GU from 22 TARA-002-treated patients. Importantly, 68% is well above the 41.9% six-month CR threshold in a minimum of 25 patients required to call approximately 10 million $5.25 warrants from the company’s April 2024 financing. That’s exactly what the company has done, triggering a 90-day exercise window for the $5.25 warrant holders, which expires on June 29th. What makes this a curious move by Protara is that its equity, currently trading between $5.20 and $5.30, isn’t in a range that overly incentivizes warrant holders to exercise. Either the company is comfortable letting some of these warrants expire, or it has news coming within the 90-day window that it is confident will push the stock high enough to motivate warrant holders to exercise. Assuming the latter, we anticipate potential catalysts could include updated NMIBC data at AUA May 15-18 or possibly updated lymphatic malformations (LMs) data at ISSVA May 19-22. Another possibility could be a regulatory update on an accelerated approval pathway for TARA-002 in LMs, something the company has hinted is coming in the near-term. Until then, we suspect the stock could remain range-bound around $5.25.
ProMIS Neurosciences (Nasdaq: PMN)
Late last month, ProMIS filed the registration statement for its January private placement ($10.77 per share with a $14.40 warrant), making approximately 7 million shares free trading. Not surprisingly, the stock has declined since the registration statement became effective, as some funds locked in profits while retaining the optionality provided by their warrants. Additionally, recent stock weakness may partly reflect the slight delay in the clinical timelines for the company’s ongoing Phase 1b Alzheimer’s disease (AD) study with its antibody PMN310. The blinded interim analysis, initially expected in Q2, is now anticipated in early Q3, and top-line data initially projected for the end of 2026 is now expected in early 2027. While not overly significant, the delay in top-line data outside the calendar year could influence some funds’ views on a speculative position like ProMIS. It is worth noting that Acumen Pharmaceuticals (Nasdaq: ABOS), a peer targeting amyloid-beta oligomers (ABO), is expected to report top-line data from its Phase 2 study before year’s end. Although they use different antibodies with similar yet nuanced mechanisms of action, Acumen’s results will likely influence investors’ perceptions of ProMIS’s prospects for success. We have previously written that we think investor interest in ProMIS and Acumen’s ABO approach to AD is percolating, as evidenced by the astute, dedicated life science funds that stepped up in both companies’ recent fundings. Further corroboration came recently when noted biotech journalist Adam Feuerstein of STAT included a ProMIS piece in one of his February Scorecard articles. In our opinion, there shouldn’t be a shortage of investor eyeballs on both these companies as they draw towards data from their respective AD studies.
RenovoRx (Nasdaq: RNXT)
Last month, Renovo provided a comprehensive update on its ongoing Phase 3 study, Tiger-Pac, with RenovoGem for treating locally advanced pancreatic cancer (LAPC), including the announcement that 104 of the 114 required patients had been randomized. The company also announced that, as of March 26th, 72 of the required 84 events (deaths) had occurred. Renovo expects the study to be fully enrolled by midyear, with top-line data expected next year. Meanwhile, Renovo is in the early stages of commercializing its standalone catheter, RenovoCath. The first year of commercial sales was modest, but we are interested to see whether, once Tiger-Pac enrollment is complete, those clinical sites quickly convert to commercial sites, which could boost RenovoCath sales. Regardless, our focus remains heavily on the Phase 3 study, as we view this as a highly asymmetric opportunity. The key question is whether, after the company’s recent $10 million financing, it is sufficiently funded through to top-line data in 2027. Given that uncertainty, RenovoCath’s commercial path is worth monitoring, as it will likely influence whether Renovo needs to return to the market before the big Tiger-Pac readout.