Enveric Biosciences narrows net loss, advances lead drug candidate

Enveric Biosciences Inc. (NASDAQ: ENVB) reported its financial results for the third quarter of 2024 and provided a corporate update yesterday.

Enveric said it made “important progress” in the development of EB-003, its lead neuroplastogenic molecule designed to treat depression, anxiety and addiction disorders without causing the hallucinogenic effects common to DMT and related analogs.

According to the company, studies confirmed EB-003 can potentially be delivered orally and penetrate the brain “at levels expected to elicit the desired therapeutic effect.” Preclinical data also showed EB-003 targets desired serotonergic receptors while minimizing potentially harmful off-target interactions.

“These are clear differentiators for EB-003, which we believe will add to its value potential,” CEO Joseph Tucker said in a statement. The company plans to submit an Investigational New Drug application for EB-003 to the FDA in the second half of 2025.

For the quarter ending Sept. 30, Enveric reported a net loss of $2.1 million, or 24 cents per share, versus a net loss of $2.8 million, or $1.30 per share, a year earlier. The company ended the quarter with cash of $3.1 million.

According to Enveric’s quarterly report filed with the SEC, the company’s operating expenses for the quarter totaled $2.1 million, down from $3.4 million in the same period last year. The reduction was primarily driven by lower G&A expenses and reduced R&D costs.

As of Sept. 30, Enveric had an accumulated deficit of $102.9 million. The company noted in its 10-Q filing that it anticipates further losses as it continues to develop its product candidates. Enveric’s operations have been funded principally through the issuance of equity, and the company stated it will require additional capital to fund additional research and development efforts.

In addition to advancing EB-003, Enveric announced it expanded patent protection for a broad range of molecules in its EVM301 portfolio and granted licenses for two of its drug candidates. The company granted Aries Science & Technology a license to its patented radiation dermatitis topical product. It also licensed its EB-002 drug candidate and EVM201 Program to MycoMedica Life Sciences.

“These agreements not only validate the company’s platform but also generate nondilutive revenue to support the development of EB-003 and further building stockholder value,” Tucker said.

In May, Enveric received a letter from the Nasdaq stating that the company was not in compliance with the minimum bid price requirement for continued listing. The company had until earlier this week to regain compliance and is considering a reverse stock split in 2025 if the bid price does not close above $1 per share for at least 10 consecutive business days before the end of the compliance period. It did not comment on the issue in its earnings release.