Biotech Stocks Rebound After Hours Amid Broader Sector Tailwinds

(RTTNews) - Biotech stocks posted strong after-hours gains Tuesday, with several small-cap names rebounding despite limited news flow. Broader sentiment may have been supported by Pfizer's announcement of U.S. drug price cuts and a $70 billion investment in domestic manufacturing. Ovid Therapeutics, NeuroOne Medical, PepGen, Reviva Pharmaceuticals, and Anika Therapeutics all saw notable moves following mixed regular session action.

Ovid Therapeutics Inc. (OVID) rose 7.69% in after-hours trading on Tuesday, climbing to $1.40 following a sharp decline during the regular session. The stock had closed at $1.30, down 7.14% on the day. The regular session selloff came amid elevated volume, with over 2.93 million shares traded, well above the 2.07 million average shares. The intraday range extended from $1.24 to $1.37, reflecting pressure across small-cap biotech names.

No fresh company-specific news was released Tuesday, but the move follows recent coverage from Lucid Capital, which initiated OVID with a Buy rating and a $5.50 price target. That note, published last month, highlighted Ovid's pipeline assets, including OV329 and OV350, both in Phase 1 trials targeting drug-resistant epilepsies. Ovid's recent financial update, released in August, showed a narrower quarterly loss and revenue that beat expectations. The company also disclosed a $7 million royalty sale agreement with Immedica Pharma, tied to future ganaxolone revenues.

NeuroOne Medical Technologies Corp. (NMTC) rose 6.98% in after-hours trading on Tuesday, climbing to $0.9506 after closing the regular session at $0.8886. The late-day rebound followed a modest decline of 1.27% during market hours, with shares trading between $0.8700 and $0.8975 on relatively light volume of 134,720, below the 315,000 average.

The company has not released any new press statements or filings, and no analyst updates were reported on Tuesday. However, on Sept. 29, the company announced that it will hold a virtual roadshow webinar on October 7 to discuss its business operations, recent FDA clearance, and corporate updates.

PepGen Inc. (PEPG) rose 3.03% in after-hours trading, reaching $4.76 after closing the regular session at $4.62. The late-day move extended a volatile stretch for the biotech stock, which has surged more than 120% over the past week following a series of clinical and financial updates.

During the regular session, shares dipped 0.43%, trading between $4.33 and $4.85 on volume of 2.72 million, slightly below the average volume of 3.12 million shares. No new filings or press releases were issued on Tuesday, but the after-hours strength suggests continued momentum around the company's pipeline and recent funding.

The modest pullback followed a sharp multi-day rally triggered by positive Phase 2 trial results for PGN-EDODM1, PepGen's candidate for myotonic dystrophy type 1. The company reported the highest mean splicing correction observed to date in DM1 patients, prompting widespread coverage across biotech media and analyst upgrades.

In addition to the clinical data, PepGen recently completed a $100 million underwritten public offering, which included the full exercise of the underwriters' option to purchase additional shares. The capital raise is expected to support continued development of PGN-EDODM1 and PGN-EDO51, targeting exon 51-skipping in Duchenne muscular dystrophy.

Reviva Pharmaceuticals Holdings Inc. (RVPH) rose 5.81% in after-hours trading on Tuesday, reaching $0.3900 after closing the regular session at $0.3686. The late-day move extended a sharp rebound that began earlier in the day, when shares surged 19.56% during market hours. Volume was notably elevated, with over 26 million shares traded, well above the average volume of 3.9 million shares.

No new filings or press releases were issued on Tuesday, but the after-hours strength suggests continued momentum around the company's clinical narrative and recent funding activity. The company recently announced a $9 million public offering, priced at $0.30 per share.

Shares of Anika Therapeutics Inc. (ANIK) rose 5.53% in after-hours trading on Tuesday, reaching $9.92 after closing the regular session at $9.40. The late-day move extended a modest gain of 2.84% during market hours, with shares trading between $9.04 and $9.49. Volume came in at 164,885, above the average of 130,788.

The regular session strength followed a quiet news cycle, with no new filings or press releases issued on Tuesday. However, Anika remains in focus ahead of its scheduled earnings report on October 30, 2025.