Enveric Biosciences to license psilocin prodrug to MindBio

Enveric Biosciences and MindBio Therapeutics have reached a preliminary agreement regarding the out-licensing of a specific class of psilocin prodrugs, also known as NPP. These compounds are designed to treat mental health disorders, notably depression, by metabolizing and releasing therapeutic levels of psilocin at controlled rates.

The NPP compounds developed by Enveric are distinguished by their enhanced gastrointestinal stability and absorption, as well as their varied pharmacokinetic profiles, which are achieved through cleavable substitutions. This development aims to provide patients with more effective treatments for neuropsychiatric conditions.

Once a definitive agreement is established, MindBio will secure an exclusive global license for the NPP drugs, including the formulations, methods of usage, and related devices developed by Enveric. This exclusive license will allow MindBio to take full control of the preclinical, clinical, and commercial development for both human and animal pharmaceutical applications. The agreement will operate on a royalty-bearing basis, meaning Enveric will receive royalties from all future sales executed by MindBio.

The financial implications of this partnership for Enveric are significant. The company stands to earn up to $66.5 million through a combination of development and sales milestone payments, in addition to the royalties. Furthermore, the deal encompasses rights for sublicensing and includes provisions for a potential cash buyout option.

MindBio Therapeutics CEO, Justin Hanka, expressed enthusiasm about the collaboration. He emphasized the value of leveraging Enveric's molecular discovery capabilities, stating that this novel and patented asset will considerably enhance MindBio's intellectual property portfolio. Hanka also highlighted the alignment of this collaboration with MindBio's strategy to develop innovative and protected compounds featuring precise formulation and dosing approaches. He anticipates that this partnership will facilitate the progression of the NPP assets into clinical trials, ultimately aiming to deliver vital and beneficial therapies to patients.

In addition to this collaboration, Enveric has made strides in its own drug development efforts. In December 2023, the company selected EB-003 from its EVM301 series as the lead candidate for treating challenging mental health disorders, further showcasing its commitment to addressing unmet medical needs in the field of neuropsychiatry.