CAMBRIDGE, Mass. - Enveric Biosciences Inc. (NASDAQ: ENVB), a biotechnology company specializing in the development of treatments for mental health disorders, has entered into a licensing agreement with MycoMedica Life Sciences. The agreement pertains to Enveric's EVM201 program and its drug candidate EB-002, which is being developed for neuropsychiatric disorders such as depression.
Under the licensing agreement, MycoMedica will have the exclusive global rights to develop, commercialize, and sublicense EB-002, a synthetic prodrug of psilocin. MycoMedica is tasked with the responsibility for all future development stages, from preclinical to commercialization, for both human and animal pharmaceutical applications.
Enveric could receive up to $62 million in upfront, development, and sales milestone payments, along with tiered single-digit royalties on future sales, provided certain conditions are met. The agreement also includes sublicensing rights and cash buyout options for MycoMedica.
The licensing of EB-002 allows Enveric to focus its resources on advancing EB-003, their novel non-hallucinogenic neuroplastogen drug candidate. Enveric's CEO, Dr. Joseph Tucker, expressed that this strategic move is aimed at fully allocating operations and development resources toward EB-003, while still creating potential for revenue from EB-002 in the long term.
MycoMedica's CEO, Dr. Sanjay Dubé, conveyed enthusiasm for the agreement, highlighting the continued development of EB-002 as a potential new treatment for patients with neuropsychiatric disorders.
Enveric has a strong intellectual property foundation with numerous patents issued and applied for internationally, supporting the value potential of the EVM201 program. The company plans to file an Investigational New Drug application for EB-003 in 2025.
The information in this article is based on a press release statement from Enveric Biosciences Inc.
In other recent news, Enveric Biosciences has made significant strides in its neuropsychiatric programs and cancer care treatments. The biotech firm secured five new US patents, expanding its Psybrary™, a proprietary library of over 1,000 tryptamine derivative molecules. The newly patented molecules could potentially broaden the therapeutic applications of Enveric's drug candidates, including EB-003, which is being developed for treatment-resistant depression and anxiety.
Enveric Biosciences also secured a patent for a topical product designed to treat radiation dermatitis. This CBD-based lotion, developed in collaboration with Aries Science & Technology, has shown preliminary promise in early animal tests and could potentially benefit approximately two million cancer patients annually. The licensing agreement for the clinical development of this product could result in up to $61 million in milestone payments and royalties for Enveric.
The company has also entered into several strategic partnerships, including licensing its Novel Psilocin Prodrugs to MindBio Therapeutics and out-licensing its patented cancer treatment methods to an undisclosed licensee. These recent developments underscore Enveric Biosciences' ongoing commitment to innovation within the biotech industry.
InvestingPro Insights
Enveric Biosciences' recent licensing agreement with MycoMedica Life Sciences comes at a critical time for the company, as revealed by InvestingPro data. With a market capitalization of just $4.26 million, Enveric is operating in a challenging financial environment. The company's focus on advancing its EB-003 program while monetizing EB-002 through licensing appears to be a strategic move to manage its resources effectively.
InvestingPro Tips highlight that Enveric is "quickly burning through cash" and "not profitable over the last twelve months." This context underscores the importance of the potential $62 million in milestone payments from the licensing agreement, which could provide much-needed capital for the company's operations and development of EB-003.
Despite these challenges, an InvestingPro Tip notes that Enveric "holds more cash than debt on its balance sheet," suggesting some financial stability. Additionally, the company has seen a "strong return over the last month," with a 13.67% price total return, indicating potential market optimism about recent developments like the licensing agreement.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Enveric Biosciences, providing a deeper understanding of the company's financial health and market position.
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