Enveric inks $62M licensing deal for psilocin prodrug

Enveric Biosciences (NASDAQ: ENVB) agreed to license one of its experimental psychedelic drug candidates to MycoMedica Life Sciences in a deal worth as much as $62 million, as the biotech company keeps its eye on its non-hallucinogenic treatments.

The agreement grants MycoMedica exclusive global rights to EB-002, a synthetic prodrug of psilocin, for treating neuropsychiatric disorders like depression, according to the company Tuesday. MycoMedica will be responsible for future development and commercialization of the compound.

The deal includes potential development and sales milestone payments plus tiered single-digit royalties on future sales, Enveric said. MycoMedica also received sublicensing rights and cash buyout options.

The licensing agreement allows Massachusetts-based Enveric to concentrate resources on advancing EB-003, its lead drug candidate designed to promote neuroplasticity without causing hallucinations. The company aims to file for FDA authorization to begin human trials in 2025.

“Given Enveric’s strategic decision to prioritize EB-003, our novel, non-hallucinogenic neuroplastogen drug candidate, we have entered into a definitive license agreement with MycoMedica to out-license EB-002 with modest upfront payments that allow the EB-002 technology to move forward, followed by potentially transformational milestone and royalty payments,” CEO Joseph Tucker said in a statement.

Enveric has built intellectual property protection around EB-002, with multiple U.S. patents covering the drug’s composition, manufacturing methods and treatment applications, the company noted in July. The patents extend to treating conditions including sleep disorders, depression, substance-related disorders and headaches.

The biotech firm in August posted a narrowed loss of $1.9 million in the second quarter ending June 30. The company had $3.5 million in cash at quarter-end and said it would need additional funding to continue research and development efforts.

Enveric has previously executed seven non-binding term sheets that could represent up to $410 million in potential milestone payments plus future royalties, Tucker has said.

MycoMedica, which is a clinical-stage biotech company, is currently developing psilocybin-based treatments for premenstrual dysphoric disorder using novel low-dose approaches, according to the news release.