Enveric sells cannabis patents to focus on psilocin candidates

Enveric Biosciences (NASDAQ: ENVB) is selling one of its cancer-related patent portfolios for an undisclosed amount. Enveric said it plans to continue to focus and invest in the development of its lead candidates EB-003, a first-in-class neuroplastogen designed to eliminate hallucinations, and EB-002, formerly EB-373, a next-generation synthetic prodrug of the active metabolite, psilocin.

“We are quite pleased to unlock value from cannabinoid-related IP, which we believe holds considerable value for patients but is no longer central to our core strategy that is focused on the development of EB-003 and EB-002,” said Joseph Tucker, Ph.D., Director and CEO of Enveric. “This transaction will provide the opportunity for Enveric to continue its focused investment in developing neuroplastogens for the treatment of mental health disorders, while providing foundational patent protection for our undisclosed purchasers who we anticipate will pursue research, clinical trials, and commercial development of cannabidiol-based therapies to treat specific types of cancer.”

The divested portfolio includes patents issued in the U.S., Australia, Canada, China, Europe, and Japan, with patent applications pending in Canada, Israel, and Korea. Enveric said it retains no ownership rights in the divested portfolio, any companies owned by, or to be formed by the recipients.

Low on cash

Green Market Report wrote in November 2023 that Enveric was running out of cash. Enveric has been cutting costs amid a restructuring plan including laying off 35% of its workforce and cutting contracts with consultants. As of Sept. 30, the company said it had cash and cash equivalents of $4.27 million and that it was an insufficient amount for the next 12 months. The concern was that the company would run out of money before revenue began to hit. The latest regulatory filing stated that Enveric has an accumulated deficit of $93 million.

Earlier in February, the company announced that the NASDAQ had granted it an extension to meet the exchange’s listing requirements. Enveric now has until May 20, 2024, to regain compliance with the minimum stockholders’ equity requirement of at least $2,500,000.

“Today’s announcement further showcases Enveric’s ability to discover and develop preclinical assets, build strong IP, and generate value both near- and long-term,” added Tucker. “Enveric recently unveiled a unique and promising library of novel preclinical compounds across multiple molecular classes including psilocybin derivatives, psilocybin prodrugs, and mescaline and MDMA derivatives with intentions to out-license and/or partner in the near future.”

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