NEW YORK, June 28, 2024 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released Update Note on Enveric Biosciences Inc. (NASDAQ: ENVB). The update note includes information on the Enveric Bioscience’s management commentary, recent developments, outlook, and risks.
The full research report is available here. Highlights from the report include:
- EB-003 Elevated to Lead Development Candidate by Enveric Biosciences: Enveric has designated EB-003 as its lead development candidate. EB-003, a pioneering neuroplastogenic molecule, targets severe mental disorders like depression, anxiety, and addiction without the hallucinogenic side effects common to psychedelic drugs. This compound promotes neuroplasticity while potentially circumventing the psychedelic effects, facilitating potential treatment in outpatient settings and broader acceptance. Enveric is currently progressing through pre-clinical development phases, with plans for a Pre-IND meeting with the FDA scheduled for early 2025. The company asserts that EB-003 could revolutionize treatment for resistant mental health conditions, highlighted by discussions of similar treatments at recent FDA advisory meetings which underscored challenges like 'expectation bias' affecting current psychedelic therapies. Preliminary data has shown EB-003’s ability to bind to the 5-HT2A receptor and induce neuroplasticity without eliciting significant hallucinogenic responses in animal models, a promising indicator for its non-hallucinogenic potential in humans. Confirming this non-hallucinogenic effect in human trials will be a critical focus in the clinical development of EB-003.
- Expanding Footprint Across Psychedelic Space with Significant Partnerships: The company has initiated a targeted business development campaign to unlock value from its extensive library of drug candidates through potential out-licensing agreements. As part of this effort, the company has executed seven non-binding out-license term sheets with four strategic partners, involving drug candidates derived from psychedelic and cannabinoid structures targeting cancer, joint disease, and neuropsychiatric indications. If converted into definitive agreements, these term sheets could represent up to $410 million in milestone payments plus future royalties.
- In a notable development, Enveric has signed a $66.5 million non-binding term sheet with MindBio Therapeutics (CNSX: MBIO) to out-license a class of novel psilocin prodrug (NPP) candidates targeting mental health disorders. Enveric's patented library of NPP compounds includes molecules with enhanced gastrointestinal stability, increased absorption properties, and variable cleavable substitutions affecting pharmacokinetics. MindBio plans to develop a candidate from the NPP class for neuropsychiatric conditions such as depression, utilizing microdosing to mitigate hallucinogenic effects. Upon finalizing a definitive agreement, MindBio will obtain an exclusive global license for Enveric’s formulations and methods, assuming responsibility for all preclinical, clinical, and commercial development on a royalty-bearing basis.
- Additionally, Enveric had previously inked two non-binding term sheets with an undisclosed biotechnology company to advance cannabinoid-COX-2 conjugate compounds for joint disease treatment. This collaboration targets a range of joint pathologies, including osteoarthritis and rheumatoid arthritis, through both pharmaceutical and non-pharmaceutical applications. Under these term sheets, Enveric could receive up to $61 million in development and sales milestone payments for pharmaceutical applications, with royalty rates from 2.5% to 10% and up to $21 million for non-pharmaceutical applications, with royalties ranging from 0.25% to 7%.
- In a notable development, Enveric has signed a $66.5 million non-binding term sheet with MindBio Therapeutics (CNSX: MBIO) to out-license a class of novel psilocin prodrug (NPP) candidates targeting mental health disorders. Enveric's patented library of NPP compounds includes molecules with enhanced gastrointestinal stability, increased absorption properties, and variable cleavable substitutions affecting pharmacokinetics. MindBio plans to develop a candidate from the NPP class for neuropsychiatric conditions such as depression, utilizing microdosing to mitigate hallucinogenic effects. Upon finalizing a definitive agreement, MindBio will obtain an exclusive global license for Enveric’s formulations and methods, assuming responsibility for all preclinical, clinical, and commercial development on a royalty-bearing basis.
The strategic partnerships allow Enveric Biosciences to accelerate the development of its innovative drug candidates while mitigating financial and operational risks. These collaborations offer significant upside potential through milestone payments and royalties, validating Enveric’s extensive portfolio of novel compounds.
- Valuation: We have updated our valuation methodology to reflect the latest financial numbers and updated share outstanding figures. Subsequently, we have re-assessed the comparable company analysis, yielding a valuation of $6.64 per share contingent on successful execution by the company.
About Enveric Biosciences Inc.
Enveric Biosciences is an innovative mental health company pioneering in the field of psychedelic medicine. Leveraging its unique AI platform, PsyAI™, and a library of novel derivative psychedelic molecules, known as Psybrary™, the company is committed to discovering and developing effective treatments for hard-to-treat mental health conditions.
For more information, visit https://www.enveric.com/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com
Disclosures:
Diamond Equity Research LLC is being compensated by Enveric Biosciences Inc. for producing research materials regarding Enveric Biosciences Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 06/28/24 the issuer had paid us $40,000 for our company sponsored research services, which commenced 07/01/23 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 06/28/24. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities, including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Enveric Biosciences Inc.
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