CAMBRIDGE, Mass. - Enveric Biosciences (NASDAQ: ENVB), a biotechnology company, and Aries Science & Technology have announced the issuance of a patent for a topical product designed to treat radiation dermatitis. The patent, numbered 12,059,393, was issued today to Enveric's subsidiary, Akos Biosciences, Inc.
The patented product, a CBD-based lotion, has shown preliminary promise in early animal tests for reducing the side effects of radiation therapy. Approximately two million cancer patients annually could benefit from this treatment, with a market opportunity estimated at $400 million.
Enveric and Aries entered into a Licensing Agreement on July 15, 2024, for the clinical development of this product, which could lead to Enveric receiving up to $61 million in milestone payments and royalties between 2.5% to 10% on future sales, contingent on meeting the Licensing Agreement conditions.
The formation of an investable subsidiary by Aries, to be chaired by Dr. Hari Harikumar, is part of the strategy to advance the development, commercialization, and launch of the topical product. Aries, based in Columbus, Ohio, specializes in encapsulation technologies and foresees a product pipeline with multiple patented formulations.
Enveric's CEO, Dr. Joseph Tucker, expressed confidence in Aries' ability to develop and bring the product to patients. He emphasized the patent issuance as a validation of the economic and commercial potential of Enveric's innovations.
This development aligns with Enveric's focus on its lead neuroplastogen drug candidate, EB-003, for the treatment of neuropsychiatric disorders. The company is also working on EB-002 for psychiatric disorders.
The information in this article is based on a press release statement.
In other recent news, Enveric Biosciences reported significant advancements in its neuropsychiatric programs. The biotech firm is progressing with its drug candidate EB-003, designed to treat severe mental health conditions without inducing hallucinations, towards clinical trials. Preclinical results have shown promising oral bioavailability and brain penetration of the drug. The company has also secured a new US patent for its drug candidate EB-002, extending its intellectual property protection for treating various brain neurological disorders.
Enveric Biosciences also entered into several strategic partnerships recently. The company licensed its Novel Psilocin Prodrugs (NPP) to MindBio Therapeutics, potentially totaling $66.5 million in payments to Enveric. In addition, it has out-licensed its patented cancer treatment methods to an undisclosed licensee, potentially bringing the company up to $61 million in execution fees, development, and sales milestones.
Enveric also entered into a licensing agreement with Aries Science & Technology for the clinical development and marketing of a patented radiation dermatitis product for cancer care. The agreement could potentially lead to milestone payments for Enveric totaling up to $61 million, along with tiered royalties on future sales. These recent developments highlight Enveric's active role in the biotech industry and its commitment to developing innovative therapies.
InvestingPro Insights
As Enveric Biosciences (NASDAQ: ENVB) celebrates the issuance of a new patent and advances its product pipeline, investors may be weighing the company's financial health and market performance. Recent data from InvestingPro provides a snapshot of the company's current financial standing.
Enveric's market capitalization stands at a modest $4.14 million, reflecting the size and scale of the company within the biotech industry. The company's price-to-book ratio as of Q1 2024 is 0.64, suggesting that the stock may be undervalued relative to its book value, which can be an attractive point for value investors.
However, the financials also reveal challenges. Enveric has reported an operating loss of $14.07 million and an EBITDA of -$13.72 million for the last twelve months as of Q1 2024. The company's stock has experienced a significant downturn, with a year-to-date total return of -59.65% and a one-year price total return of -80.72%, indicating a tough period for the shareholders.
Two InvestingPro Tips that stand out for Enveric include the company's ability to hold more cash than debt on its balance sheet, which provides some financial flexibility, and the fact that liquid assets exceed short-term obligations, suggesting a degree of short-term financial stability. However, analysts do not anticipate the company will be profitable this year, which is a critical consideration for potential investors. For those interested in exploring further, there are 12 additional InvestingPro Tips available at https://www.investing.com/pro/ENVB, offering deeper insights into Enveric's financial health and market prospects.
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