SciSparc Signs Letter for $6M Global Pain Treatment Licensing

SciSparc Ltd. (Nasdaq: SPRC), a clinical-stage pharmaceutical company specializing in treatments for central nervous system disorders and rare diseases, announced the signing of a non-binding letter of intent (LOI) with a biotechnology company to potentially out-license its SCI-160 program. This program focuses on a cannabinoid-based formulation for pain management.

Under the terms of the LOI, the biotechnology company will obtain exclusive, royalty-bearing global licenses to develop and sublicense the SCI-160 assets. In return, SciSparc is set to receive $3 million in ordinary shares and pre-funded warrants from the biotechnology company. Additionally, SciSparc stands to gain approximately $3 million in cash upon meeting certain milestones.

SCI-160 is an innovative synthetic cannabinoid formulation designed to treat pain. Pre-clinical studies by SciSparc indicate that this formulation, which combines cannabinoids with Palmitoylethanolamide, mediates analgesic effects in the peripheral nervous system without significant side effects. The research shows that SCI-160 is comparable to high-dose morphine in efficacy and, in some cases, has demonstrated superior potency. Furthermore, it has been well tolerated in study subjects, with no significant adverse clinical effects recorded.

The misuse of prescription opioids, though effective for moderate-to-severe pain, is a major public health crisis. Data from the Centers for Disease Control and Prevention and the National Center for Health Statistics reveal a disturbing rise in overdose deaths involving prescription opioids, increasing from 3,442 in 1999 to 14,716 in 2022.

Oz Adler, Chief Executive Officer of SciSparc, emphasized that this LOI will enable the company to concentrate on its core pharmaceutical projects, which include late-stage programs targeting Alzheimer's disease, Tourette syndrome, and autism. Adler expressed confidence that focusing on these core activities will maximize shareholder value.

SciSparc Ltd. is led by a seasoned team of executives and scientists and is committed to developing a diverse portfolio of cannabinoid-based pharmaceuticals. The company’s current drug development pipeline includes SCI-110 for Tourette Syndrome and Alzheimer's disease with agitation, SCI-160 for pain, and SCI-210 for autism and status epilepticus. Additionally, SciSparc holds a controlling interest in a subsidiary that sells hemp seed oil products on Amazon.com.