Enveric Biosciences, Inc (NASDAQ: ENVB) stock is witnessing a remarkable surge in its market valuation today, with an impressive ascent of 133.75% to $1.94 observed in the latest market session. This notable upswing in Enveric’s stock price coincides with the announcement of a strategic licensing agreement.
Enveric (ENVB) today inked three preliminary agreements with an undisclosed biotechnology firm, marking the initiation of negotiations for the out-licensing of three distinct categories of compounds. These compounds originate from Enveric’s extensive reservoir comprising over 1,000 innovative molecules, crafted through the utilization of the Company’s Psybrary platform and its proprietary computational chemistry and artificial intelligence (AI) drug discovery system (PsyAI).
The terms outlined in the three agreements entail that the undisclosed licensee would secure exclusive, royalty-bearing global licenses for the development and sublicensing of the assets. Additionally, the agreements entail cash buyout options and prospective option rights concerning closely associated assets within Enveric’s portfolio.
The licensee would shoulder the responsibility for all forthcoming preclinical and clinical developmental phases pertaining to pharmaceutical applications for both human and/or animal usage. Moreover, Enveric stands to potentially receive significant remunerations, including development and sales milestone payments and execution fees, amounting to a cumulative total of $200 million, subject to specific conditions.
These conditions encompass the approval of investigational new drug (IND) applications and the completion of Phases I through III testing for the licensed products. Royalty rates, ranging from 2.5% to 10% on future sales, are contingent upon meeting predefined sales benchmarks.
The compound classes covered under these agreements are derived from two of the seven portfolios of preclinical molecules recently unveiled by Enveric, with numerous other molecules and classes remaining open for further out-licensing opportunities.
The plight of patients grappling with severe mental health conditions has persistently suffered from a lack of meaningful innovation. Enveric is poised with enthusiasm to advance several of the novel compounds engendered through its drug discovery engine.
