Enveric Biosciences Signs $66.5M Term Sheet with MindBio Therapeutics to Out-License Psilocin Prodrug for Mental Health Disorders

Enveric Biosciences, a biotechnology firm dedicated to advancing neuroplastogenic small-molecule therapeutics for mental health disorders, has entered into a non-binding agreement to license its Novel Psilocin Prodrugs (NPP) to MindBio Therapeutics. The latter is a clinical-stage biopharmaceutical company based in Vancouver, pioneering innovative treatments for psychiatric conditions through microdosing of psychedelic medicines.

The NPP molecules developed by Enveric are engineered to metabolize and release therapeutic levels of systemic psilocin at varied rates, thus potentially enhancing the treatment of neuropsychiatric conditions. These compounds are designed with diverse properties, such as improved gastrointestinal stability, increased absorption, and altered pharmacokinetic attributes. This suite of NPP compounds is protected under a U.S. patent, with additional protections sought through pending U.S. and international patent applications.

According to the terms of the non-binding term sheet, MindBio aims to advance a drug candidate from the NPP class for the treatment of neuropsychiatric conditions like depression. In the event of a definitive agreement, MindBio would secure an exclusive, global license to the formulations, drugs, use methods, and devices developed from the NPP compounds. They would take on the responsibility for all preclinical, clinical, and commercial development, operating on a royalty-bearing basis for both human and animal pharmaceutical applications.

If the agreement is finalized and certain conditions are met, MindBio is expected to pay Enveric up to $66.5 million in development and sales milestones, along with royalties ranging from 2.5% to 10% on all future sales. The agreement would also provide MindBio the right to sublicense and options for cash buyouts.

Dr. Joseph Tucker, Director and CEO of Enveric, expressed optimism about the collaboration, highlighting the potential synergies between Enveric’s and MindBio’s approaches towards harnessing psychedelic compounds to target specific brain signaling pathways for treating neuropsychiatric conditions.

Justin Hanka, Chief Executive Officer of MindBio, echoed this sentiment. He emphasized the value of integrating Enveric's molecular discovery capabilities into MindBio’s intellectual property portfolio, aligning with their strategy to develop innovative and protected compounds with precise formulation and dosing strategies. Hanka is looking forward to advancing the asset into clinical trials, aiming to bring novel therapeutic solutions to patients in need.

Enveric Biosciences is headquartered in Naples, Florida, with additional offices in Cambridge, Massachusetts, and Calgary, Alberta, Canada. The company’s lead program, EB-003, aims to treat complex mental health disorders by promoting neuroplasticity without inducing hallucinations. Enveric is also progressing EB-002, a next-generation synthetic prodrug of psilocin, for psychiatric disorder treatment.

MindBio Therapeutics is recognized for pioneering take-home microdosing clinical trials, with its lead candidate drug, MB22001, designed for microdosing with LSD. The company has completed initial clinical trials with positive outcomes and is currently conducting Phase 2B trials for cancer patients with existential distress and those with Major Depressive Disorder. MindBio's efforts extend to women's health, with multiple approved Phase 2A/2B trials, showcasing their commitment to developing groundbreaking treatments for mental health conditions.