Full Press Release Details
Biosciences Signs Non-Binding Term Sheets to Pursue the Exclusive Out-Licensing of Three Classes of Compounds
significant milestone payments and execution fees if all development and sales criteria are met for all three agreements.
Mass., February 29, 2024 - 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 ).
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.
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.
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."
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.
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.
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.
Strategic Advisors, Inc.
Strategic Advisors, Inc.