Aries Science & Technology and Enveric Biosciences Announce Licensing Agreement

Rhea-AI Summary

Enveric Biosciences (NASDAQ: ENVB) and Aries Science & Technology have announced a licensing agreement for the clinical development of Enveric's patented radiation dermatitis topical product. This condition affects approximately two million cancer patients annually, with a market opportunity estimated at $400 million. The agreement includes potential milestone payments of up to $61 million and tiered royalties ranging from 2.5% to 10% on future sales for Enveric. Aries has nominated Dr. Hari Harikumar as Chairman-elect of a subsidiary formed to advance this opportunity. This partnership allows Enveric to focus on neuropsychiatric indications while Aries develops the cancer support care product.

Positive

• Licensing agreement for radiation dermatitis product with $400 million market opportunity
• Potential milestone payments of up to $61 million for Enveric
• Tiered royalties ranging from 2.5% to 10% on future sales
• Allowed US patent application and pending PCT application protecting the formulation

Negative

• None.

Financial Analyst

From a financial perspective, the licensing agreement between Enveric and Aries presents notable revenue potential for Enveric. The agreement outlines up to $61 million in milestone payments, contingent on achieving specific targets. Additionally, tiered royalties ranging from 2.5% to 10% on future sales offer long-term revenue streams. This structure aligns incentives and mitigates upfront risks for Enveric.

Given the estimated $400 million market opportunity for radiation dermatitis treatments, even a modest market penetration could result in substantial revenue. However, investors should consider the inherent risks of clinical development and regulatory approval, which could affect the timing and realization of these potential earnings.

Oncology Doctor

Radiation dermatitis affects a significant number of cancer patients, with approximately two million cases annually. The condition can severely diminish a patient's quality of life, making effective treatments highly desirable. Enveric’s patented product, now under Aries' clinical development, offers potential relief and addresses a significant unmet need in cancer care.

The involvement of a specialized company like Aries, with expertise in encapsulation technologies, is promising. Encapsulation can enhance drug delivery and efficacy, potentially improving patient outcomes. This, in turn, could make the product more appealing not only clinically but also commercially.

Given the high prevalence of radiation dermatitis, a successful clinical outcome could place this product as a standard supportive care treatment, enhancing its adoption and market penetration.

Market Research Analyst

The radiation dermatitis market, estimated at $400 million annually, represents a niche yet significant segment within the broader oncology supportive care industry. This market size indicates a viable opportunity for new entrants, provided the product can meet clinical efficacy and safety standards.

Aries’ established presence in encapsulation solutions and management expertise, specifically with the leadership of Dr. Hari Harikumar, adds a layer of credibility and strategic direction to the venture. Effective market penetration will depend on Aries’ ability to navigate clinical trials, regulatory approvals and subsequently, market the product effectively.

For retail investors, the long-term potential lies in the successful commercialization of this product, which could significantly boost Enveric’s market position and revenue streams. However, this trajectory includes the inherent uncertainties of clinical trial outcomes and regulatory hurdles.

Aries to clinically develop and market Enveric’s patented product for radiation dermatitis

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Enveric Biosciences (NASDAQ: ENVB) (“Enveric”), a biotechnology company dedicated to the development of novel neuroplastogens for the treatment of neuropsychiatric disorders, and Aries Science & Technology (“Aries”), a developer of encapsulation technologies, today announced a licensing agreement for the clinical development of Enveric’s patented radiation dermatitis topical product.

Radiation dermatitis is a side effect of radiation treatment that impacts roughly two million cancer patients per year and has a market opportunity estimated at $400 million annually. The formulation licensed to Aries is protected by an allowed US patent application, as well as a pending PCT application.

“This product offers the potential to provide much needed relief to cancer patients suffering from the painful side effects of radiation therapy,” said Ram Lalgudi, Ph.D., CEO of Aries. “We are excited by the opportunity to advance this promising molecule to clinical trials.”

Dr. Lalgudi announced: “Aries has nominated Hari Harikumar, Ph.D., as Chairman-elect of an Aries subsidiary being formed to advance this opportunity. Dr. Harikumar is a techno-commercial entrepreneur having experience with multiple companies, including his current role as VP for Performance Additives in CHASM Advanced Materials and earlier roles as CEO of QM Power, and VP, Innovation, Sustainability and Technology for Ingersoll Rand/TRANE, and President & CTO for USHA, a leading consumer brand in India. We look forward to great success under his leadership.”

Joseph Tucker, Ph.D., CEO of Enveric, stated: “With its proven expertise in encapsulation solutions and strong management team, we believe Aries is the ideal partner to continue the development of this cancer support care product while Enveric sharpens its focus on neuropsychiatric indications.”

Under the terms of the agreement, executed through Enveric’s subsidiary, Akos Biosciences, Inc., Enveric will be eligible to receive aggregate milestone payments of up to $61 million, as well as tiered royalties ranging from 2.5% to 10% on future sales, if all conditions are met.

About Aries Science and Technology LLC

Aries has research laboratories In Columbus, Ohio and possesses deep technical expertise relevant to the envisioned product forms. Aries is planning to establish an investable subsidiary focused on completing development, commercialization and launch of the topical product and projects a potential product pipeline featuring multiple patented formulations.

About Enveric Biosciences

Enveric Biosciences (NASDAQ: ENVB) is a biotechnology company dedicated to the development of novel neuroplastogenic small-molecule therapeutics for the treatment of depression, anxiety, and addiction disorders. Leveraging its unique discovery and development platform, Psybrary™, Enveric has created a robust intellectual property portfolio of new chemical entities for specific mental health indications. Enveric’s lead program, EB-003, is a first-in-class approach to the treatment of difficult-to-address mental health disorders designed to promote neuroplasticity without inducing hallucinations in the patient. Enveric is also developing EB-002, formerly EB-373, a next generation synthetic prodrug of the active metabolite, psilocin, being studied as a treatment of psychiatric disorders. Enveric is headquartered in Naples, FL with offices in Cambridge, MA and Calgary, AB Canada. For more information, please visit www.enveric.com.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “proposed,” “budgets,” “explores,” “scheduled,” “seeks,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, should, would, or might occur or be achieved. Forward-looking statements may include statements regarding beliefs, plans, expectations, or intentions regarding the future and are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited to, the ability of Enveric to: carry out successful clinical programs; achieve the value creation contemplated by technical developments; avoid delays in planned clinical trials; establish that potential products are efficacious or safe in preclinical or clinical trials; establish or maintain collaborations for the development of therapeutic candidates; obtain appropriate or necessary governmental approvals to market potential products; obtain future funding for product development and working capital on commercially reasonable terms; scale-up manufacture of product candidates; respond to changes in the size and nature of competitors; hire and retain key executives and scientists; secure and enforce legal rights related to Enveric’s products, including patent protection; identify and pursue alternative routes to capture value from its research and development pipeline assets; continue as a going concern; and manage its future growth effectively.

A discussion of these and other factors, including risks and uncertainties with respect to Enveric, is set forth in Enveric’s filings with the Securities and Exchange Commission, including Enveric’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Enveric disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240715938433/en/

Tiberend Strategic Advisors, Inc.

Casey McDonald

(646) 577-8520

cmcdonald@tiberend.com

Source: Enveric Biosciences

FAQ

What is the licensing agreement between Enveric Biosciences (ENVB) and Aries Science & Technology?

Enveric Biosciences (ENVB) has licensed its patented radiation dermatitis topical product to Aries Science & Technology for clinical development and marketing.

What is the market opportunity for Enveric's (ENVB) radiation dermatitis product?

The market opportunity for Enveric's (ENVB) radiation dermatitis product is estimated at $400 million annually, affecting approximately two million cancer patients per year.

What are the potential financial benefits for Enveric Biosciences (ENVB) from this licensing agreement?

Enveric Biosciences (ENVB) is eligible to receive up to $61 million in milestone payments and tiered royalties ranging from 2.5% to 10% on future sales from the licensing agreement with Aries Science & Technology.

Who has Aries nominated as Chairman-elect for the subsidiary developing Enveric's (ENVB) radiation dermatitis product?

Aries has nominated Dr. Hari Harikumar as Chairman-elect of the subsidiary being formed to advance Enveric's (ENVB) radiation dermatitis product.