Enveric's Q2 2023 Financials Show Immediate Need For Budget-Slimming Toward A Clinical-Staged 2024

Next-gen psychedelics business Enveric Biosciences ENVB reported its unaudited financial results for the second quarter of 2023 ended June 30.

Results show:

• Cash and cash equivalents of $7.08 million, as compared to the $17.7 million held on Dec. 31, 2022.

• Three and six months R&D expenses of $2.5 million and $4.5 million, compared to $2.1 million and $4.07 million in the same comparable years of 2022.

• Three and six months of G&A expenses of $3.2 million and $5.9 million, compared to $2.5 million and $5.3 million in the respective comparable periods of the prior year. 

• Three and six months net loss attributable to shareholders of $6.4 million (or a $3.04 loss per basic and diluted share) and $11.2 million (or a $5.35 loss per share); vs. $2.9 million (or a $2.73 loss per share) and $7.4 million (or a $7.78 loss per share) for the respective comparable 2022 periods.

• Six-month operating cash outflows of $9.6 million, $10.6 million loss from operations, and almost $4 million working capital expenses.

• Accumulated deficit of $90.2 million as of June 30, 2023.

Numbers have had the management raise “substantial doubt” regarding Enveric’s ability to continue its operations during the next year, with further losses anticipated and no revenue generated still.

Accordingly, the management’s plan “to alleviate the conditions” that raise such doubt includes reducing the rate of spend, managing its cash flow, advancing its programs, and raising additional working capital through public or private equity or debt financings or other sources, “which may include collaborations with third parties,” as well as disciplined cash spending. 

If the company is unable to raise enough additional capital, it may undertake cost-cutting measures “including delaying or discontinuing certain operating activities” at its research facility in Calgary. 

The disbursement list is long, indeed: employee-related expenses, third-party product development activities, research materials and lab supplies, facility-related expenses, preclinical studies costs, patent-related costs, costs of regulatory and public company compliance, insurance and audit costs, and consultants and legal fees. 

The management team has thus announced a cost reduction plan designed to extend Enveric’s financial runway into the first quarter of 2024.

Drug Pipeline & IP Portfolio 

Headquartered in Naples, FL with offices in Cambridge, MA and Calgary, AB, Enveric develops novel, small neuropathogenic molecules to target neuronal atrophy for the treatment of anxiety, depression and addiction disorders through its discovery and development platform The Psybrary. 

The lead EVM201 series hosts next-generation synthetic psilocin prodrugs, with first compound EB-373 aimed at treating anxiety disorders. The EVM301 series is designed as a new approach to the treatment of difficult-to-address mental health disorders through neuroplasticity-promoting, non-hallucinations-inducing compounds. 

See Also: Enveric Creates Subsidiary Down Under To Further Next-Generation Psychedelics Program

CEO Dr. Joseph Tucker says the company’s second quarter was “an exciting and productive period” comprising significant steps to advance its pipeline, specifically focusing on enhancing its IP portfolio ”critical to the value potential of our technologies” covering EB-373 and both the EVM201 and EVM301 series, as well as completing preclinical and manufacturing processes for EB-373 in preparation for its first-in-human clinical trial.

Dr. Tucker added the team is on track to identify a lead candidate from the EVM301 series before 2023 ends, thereafter beginning preclinical development in 2024 and an Investigational New Drug (IND) application thereafter.

Photo: Benzinga edit with photo by PublicDomainPictures and janjf93 on Pixabay.