CAMBRIDGE, Mass. - Enveric Biosciences (NASDAQ: ENVB), a biotechnology firm focusing on therapies for mental health disorders, has signed two non-binding term sheets with an unnamed biotech company for the out-licensing of novel compounds. The potential agreements involve cannabinoid-COX-2 conjugate compounds aimed at treating joint diseases in human and animal health.
Under the proposed terms, the licensee would handle all future development efforts for the compounds, which are new chemical entities combining cannabinoids with COX-2 inhibitors and selected steroids. In exchange, they would receive exclusive global licenses to develop, market, and sublicense the products.
The pharmaceutical application term sheet suggests Enveric could receive up to about $61 million in development and sales milestone payments, along with royalties ranging from 2.5% to 10%. These payments are contingent on achieving regulatory milestones, including IND approval and completion of clinical trials.
The non-pharmaceutical term sheet outlines potential milestone payments up to approximately $21 million and royalty rates from 0.25% to 7%, based on successful product development and sales achievements.
The combined milestone payments from both assets could potentially net Enveric up to approximately $82 million.
Joseph Tucker, Ph.D., CEO of Enveric, expressed confidence in the licensee's capability to advance the development of these compounds. He also noted that the definitive licensing agreements, once finalized, could provide a significant revenue source for Enveric and highlight the value of its asset portfolio.
Enveric Biosciences, headquartered in Naples, FL, with offices in Cambridge, MA, and Calgary, AB, Canada, leverages its Psybrary™ platform to develop small-molecule therapeutics for depression, anxiety, and addiction disorders. Its lead program, EB-003, and another compound, EB-002, are part of its focus on mental health treatments.
The information disclosed is based on a press release statement and contains forward-looking statements subject to risks and uncertainties, including the potential for definitive agreements to differ from the non-binding term sheets and the ability of Enveric to fulfill the terms of any future agreements.
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