Microdosing For Depression: Psychedelics Biotech Signs $66.5M Non-Binding Deal To Out-License Novel Psilocin Prodrug Candidate

Zinger Key Points
  • Enveric Biosciences signed a non-binding term sheet to out-license a class of novel psilocin products to MinBio Therapeutics.  
  • Under the deal, MindBio will develop the novel psilocin prodrug for neuropsychiatric indications utilizing microdosing.  
  • If a definitive agreement is reached, MindBio would pay Enveric development and sales milestones up to $66.5 million and royalties.  

Psychedelics biotech firm, Enveric Biosciences ENVB has signed a non-binding term sheet to out-license a class of Novel Psilocin Prodrugs (NPP) to Vancouver, British Columbia-based biopharma company MindBio Therapeutics Corp CSE: MBIO, which is pioneering novel treatments for psychiatric conditions using microdoses of psychedelic medicines.

The news comes on the heels of Enveric entering into a non-binding term sheet with an undisclosed biotech company (licensee) for an exclusive license to two patented methods aimed at treating breast cancer and other cancers.

Enveric's NPP molecules are designed to be metabolized specifically to release therapeutic levels of systemic psilocin at varying rates. The company has generated a library of NPP compounds protected by an issued US patent and further claimed in two pending US patent applications and three international PCT patent applications. The library of NPP compounds includes molecules with varying properties such as enhanced gastrointestinal (GI) stability, increased absorption properties, and variable cleavable substitutions producing altered pharmacokinetic properties.

"We look forward to working with MindBio's team who is pioneering an important part of the exciting psychedelic space, focused on controlling dose to reduce or eliminate hallucinations associated with these powerful compounds," stated Joseph Tucker, Ph.D., director and CEO of Enveric. "This non-binding term sheet highlights the potential synergies between the Enveric and MindBio approaches to leveraging psychedelic-based compounds to target specific signaling pathways in the brain for the treatment of neuropsychiatric conditions."

See Also: LSD Microdosing For PMS? After Confirming Antidepressant Effects, Clinical Trials Will Assess If It Addresses Mood Issues

Deal Highlights 

Under the terms of the deal, MindBio will seek to advance a drug candidate from the NPP class for neuropsychiatric indications such as depression. The term sheet states that upon entering into a definitive agreement, MindBio would receive an exclusive, global license to the formulations, drugs, method of use, and devices developed to utilize the compound from Enveric and would assume responsibility for all future preclinical, clinical, and commercial development on a royalty-bearing basis for all human and animal pharmaceutical applications.

If a definitive agreement is entered into and certain conditions are met, MindBio would pay Enveric development and sales milestones up to an aggregate of $66.5 million and royalties (ranging from 2.5% up to 10%) on all future sales. The license would include the right to sublicense and cash buyout options.

"We are pleased to explore an opportunity to draw on the molecular discovery engine at Enveric and believe this novel and patented asset significantly strengthens our intellectual property pipeline and aligns with our strategy to develop innovative, protected compounds with fine-tuned formulation and dosing strategies," MindBio CEO Justin Hanka said in a statement. "We look forward to the prospect of progressing this asset into clinical trials, as we seek to bring important and beneficial therapies to patients in need."

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Photo: Courtesy of 24K-Production via Shutterstock

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Posted In: CannabisNewsPsychedelicsMarketsJoseph TuckerJustin HankaMicrodosingNovel Psilocin Prodrugs
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