Enveric Biosciences Signs Non-Binding Term Sheets to Pursue the Exclusive Out-Licensing of Three Classes of Compounds
February 29 2024 - 7:00AM
Business Wire
Potentially significant milestone payments and
execution fees if all development and sales criteria are met for
all three agreements.
Enveric Biosciences (NASDAQ: ENVB) (“Enveric” or the “Company”),
a biotechnology company dedicated to the development of novel
neuroplastogenic small-molecule therapeutics for the treatment of
depression, anxiety, and addiction disorders, is pleased to
announce that it has signed three non-binding term sheets with an
undisclosed biotechnology company to pursue the out-licensing of
three classes of compounds. The compounds come from Enveric’s
extensive library of over 1,000 novel molecules generated using the
Company’s Psybrary™ platform and proprietary computational
chemistry and artificial intelligence (AI) drug-discovery system
(PsyAI™).
The three term sheets contemplate that the undisclosed licensee
would receive exclusive, royalty-bearing global licenses to develop
and sublicense the assets, along with cash buyout options and
future option rights to substantially related assets in the Enveric
portfolio. The licensee would assume responsibility for all future
preclinical and clinical development for all human and/or animal
pharmaceutical applications.
The term sheets further provide that, Enveric could be eligible
to receive future development and sales milestone payments and
execution fees for the three licenses, which in total could add up
to $200 million, assuming certain conditions are met, including
receiving approval for the investigational new drug (IND)
applications and completing Phases I through III testing of the
licensed products. Royalty rates on each of the three licenses
could range from 2.5% up to 10% on future sales, depending on
meeting certain sales criteria. The compound classes under the term
sheets come from two of the seven portfolios of preclinical
molecules that Enveric recently unveiled as available for
out-licensing. Numerous molecules and classes remain available for
additional out-licensing opportunities.
“Patients living with serious mental health conditions have seen
insufficient innovation for far too long, and we are excited for
the opportunity to progress several of the novel compounds
generated using our drug discovery engine,” said Joseph Tucker,
Ph.D., Director and CEO of Enveric. “We look forward to working
with our partner, and we are confident in their leadership and
capabilities to work on further developing these drug candidates to
advance treatment options for patients. Ultimately, we believe the
definitive licensing agreements, once negotiated and finalized,
could represent an excellent potential source of revenue for
Enveric, and could demonstrate the value creation from Enveric’s
discovery capabilities and proprietary PsyAI™ and Psybrary™
platforms, which have already generated an impressive library of
compounds targeting a variety of CNS disorders.”
About Enveric Biosciences
Enveric Biosciences (NASDAQ: ENVB) is a biotechnology company
dedicated to the development of novel neuroplastogenic
small-molecule therapeutics for the treatment of depression,
anxiety, and addiction disorders. Leveraging its unique discovery
and development platform, Psybrary™, Enveric has created a robust
intellectual property portfolio of New Chemical Entities for
specific mental health indications. Enveric’s lead program, EB-003,
is a first-in-class approach to the treatment of
difficult-to-address mental health disorders designed to promote
neuroplasticity without inducing hallucinations in the patient.
Enveric is also developing EB-002, formerly EB-373, a next
generation synthetic prodrug of the active metabolite, psilocin,
being studied as a treatment of psychiatric disorders. Enveric is
headquartered in Naples, FL with offices in Cambridge, MA and
Calgary, AB Canada. For more information, please visit
www.enveric.com.
Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. These statements relate to future events or future
performance. All statements other than statements of historical
fact may be forward-looking statements or information. Generally,
forward-looking statements and information may be identified by the
use of forward-looking terminology such as “plans,” “expects” or
“does not expect,” “proposed,” “is expected,” “budgets,”
“scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or
“does not anticipate,” or “believes,” or variations of such words
and phrases, or by the use of words or phrases which state that
certain actions, events or results may, could, should, would, or
might occur or be achieved. Forward-looking statements may include
historical statements and statements regarding beliefs, plans,
expectations, or intentions regarding the future and are based on
the beliefs of management as well as assumptions made by and
information currently available to management. Actual results could
differ materially from those contemplated by the forward-looking
statements as a result of certain factors, including, but not
limited to, the ability of Enveric to: negotiate and finalize
definitive agreements based on the three out-licensing term sheets
and perform pursuant to the terms thereof; carry out successful
clinical programs in Australia; achieve the value creation
contemplated by technical developments; avoid delays in planned
clinical trials; establish that potential products are efficacious
or safe in preclinical or clinical trials; establish or maintain
collaborations for the development of therapeutic candidates;
obtain appropriate or necessary governmental approvals to market
potential products; obtain future funding for product development
and working capital on commercially reasonable terms; scale-up
manufacture of product candidates; respond to changes in the size
and nature of competitors; hire and retain key executives and
scientists; secure and enforce legal rights related to Enveric’s
products, including patent protection; identify and pursue
alternative routes to capture value from its research and
development pipeline assets; continue as a going concern; and
manage its future growth effectively. The three out-licensing term
sheets identified herein are non-binding and may not result in
definitive agreements or attainment of the licensing fees
referenced therein.
A discussion of these and other factors, including risks and
uncertainties with respect to Enveric, is set forth in Enveric’s
filings with the Securities and Exchange Commission, including
Enveric’s Annual Report on Form 10-K and its Quarterly Reports on
Form 10-Q. Enveric disclaims any intention or obligation to revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240228697980/en/
Investor Relations Tiberend Strategic Advisors, Inc.
Daniel Kontoh-Boateng (862) 213-1398
dboateng@tiberend.com
Media Relations Tiberend Strategic Advisors, Inc. Casey
McDonald (646) 577-8520 cmcdonald@tiberend.com
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