Enveric Biosciences, Inc. ENVB shares are soaring Thursday after the company announced it has signed three non-binding term sheets with an undisclosed biotechnology company to pursue the out-licensing of compounds.
The Details:
Enveric said it could be eligible to receive future development and sales milestone payments and execution fees for the three licenses, which in total could add up to $200 million, assuming certain conditions are met, including receiving approval for the investigational new drug (IND) applications and completing Phases I through III testing of the licensed products.
Enveric also said royalty rates on each of the three licenses could range from 2.5% up to 10% on future sales, depending on meeting certain sales criteria.
“We look forward to working with our partner, and we are confident in their leadership and capabilities to work on further developing these drug candidates to advance treatment options for patients," said Joseph Tucker, Ph.D., CEO of Enveric.
"Ultimately, we believe the definitive licensing agreements, once negotiated and finalized, could represent an excellent potential source of revenue for Enveric, and could demonstrate the value creation from Enveric’s discovery capabilities and proprietary PsyAI and Psybrary platforms, which have already generated an impressive library of compounds targeting a variety of CNS disorders,” Tucker added.
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ENVB Stock Prediction 2024
Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of Enveric Biosciences ENVB have an average 1-year price target of $10, representing an expected upside of 449.45%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Enveric Biosciences, while 1 analyst has a bullish rating. The street high price target from HC Wainwright & Co. is $10.
ENVB Price Action: According to Benzinga Pro, Enveric shares are up 200% at $2.50 at the time of publication.
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