SciSparc Finalizes Exclusive Global Out-Licensing Agreement for its Pain Therapy Valued at $3 million
SciSparc (Nasdaq: SPRC) has signed an Exclusive Patent License Agreement with Polyrizon for the out-licensing of its SCI-160 program for pain treatment. The deal is valued at $3 million in Polyrizon securities, with potential additional milestone fees of $3 million in cash and royalties. SCI-160 is a proprietary synthetic combination of cannabinoids and N-acylethanolamines that has shown promising results in pre-clinical studies, demonstrating analgesic effects comparable to high-dose morphine without significant side effects. This agreement allows SciSparc to potentially benefit from the program's development without further investment, addressing the need for effective pain treatments amid the opioid abuse crisis.
SciSparc (Nasdaq: SPRC) ha firmato un'Accordo di Licenza Brevetto Esclusivo con Polyrizon per l'uscita in licenza del suo programma SCI-160 per il trattamento del dolore. L'accordo ha un valore di 3 milioni di dollari in titoli Polyrizon, con ulteriori potenziali oneri di traguardo di 3 milioni di dollari in contante e royalties. SCI-160 è una combinazione sintetica proprietaria di cannabinoidi e N-acilethanolamine che ha mostrato risultati promettenti negli studi preclinici, dimostrando effetti analgesici paragonabili a quelli della morfina ad alta dose senza effetti collaterali significativi. Questo accordo consente a SciSparc di beneficiare potenzialmente dello sviluppo del programma senza ulteriori investimenti, rispondendo alla necessità di trattamenti efficaci per il dolore in mezzo alla crisi di abuso di oppioidi.
SciSparc (Nasdaq: SPRC) ha firmado un Acuerdo de Licencia de Patente Exclusiva con Polyrizon para la sublicencia de su programa SCI-160 para el tratamiento del dolor. El acuerdo está valorado en 3 millones de dólares en valores de Polyrizon, con posibles honorarios por hitos de 3 millones de dólares en efectivo y regalías. SCI-160 es una combinación sintética patentada de cannabinoides y N-aciletanolaminas que ha mostrado resultados prometedores en estudios preclínicos, demostrando efectos analgésicos comparables a los de la morfina a alta dosis sin efectos secundarios significativos. Este acuerdo permite a SciSparc beneficiarse potencialmente del desarrollo del programa sin inversiones adicionales, abordando la necesidad de tratamientos efectivos para el dolor en medio de la crisis de abuso de opioides.
SciSparc (Nasdaq: SPRC)는 Polyrizon과 통증 치료를 위한 SCI-160 프로그램의 라이센스 아웃을 위한 독점 특허 라이센스 계약을 체결했습니다. 이 계약은 Polyrizon 증권으로 300만 달러의 가치를 가지며, 추가로 현금 300만 달러의 이정표 수수료와 로열티 가능성이 있습니다. SCI-160은 전임상 연구에서 유망한 결과를 보여준 캐나비노이드와 N-아실에탄올아민의 독점 합성 조합으로, 상당한 부작용 없이 고용량 모르핀과 유사한 진통 효과를 나타냅니다. 이 계약은 SciSparc가 추가 투자 없이 프로그램의 개발로부터 잠재적인 이점을 누릴 수 있도록 하여, 오피오이드 남용 위기 속에서 효과적인 통증 치료의 필요성을 해결합니다.
SciSparc (Nasdaq: SPRC) a signé un Accord de Licence de Brevet Exclusif avec Polyrizon pour la sous-licence de son programme SCI-160 pour le traitement de la douleur. L'accord est évalué à 3 millions de dollars en titres Polyrizon, avec des frais d'étape supplémentaires de 3 millions de dollars en espèces et en redevances. SCI-160 est une combinaison synthétique propriétaire de cannabinoïdes et d'N-acylethanolamines qui a montré des résultats prometteurs dans des études précliniques, démontrant des effets analgésiques comparables à ceux de la morphine à forte dose sans effets secondaires significatifs. Cet accord permet à SciSparc de bénéficier potentiellement du développement du programme sans investissement supplémentaire, répondant à la nécessité de traitements efficaces contre la douleur au milieu de la crise d'abus d'opioïdes.
SciSparc (Nasdaq: SPRC) hat einen Exklusiven Patentlizenzvertrag mit Polyrizon unterzeichnet, um sein SCI-160-Programm zur Behandlung von Schmerzen zu lizenzieren. Der Vertrag wird mit 3 Millionen Dollar in Wertpapieren von Polyrizon bewertet, mit potenziellen zusätzlichen Meilensteinzahlungen von 3 Millionen Dollar in bar und Tantiemen. SCI-160 ist eine proprietäre synthetische Kombination aus Cannabinoiden und N-Acylethanolaminen, die in präklinischen Studien vielversprechende Ergebnisse zeigt und analgetische Effekte vergleichbar mit Hochdosis-Morphin ohne erhebliche Nebenwirkungen demonstriert. Dieser Vertrag ermöglicht es SciSparc, potenziell von der Entwicklung des Programms zu profitieren, ohne weitere Investitionen zu tätigen, und adressiert das Bedürfnis nach effektiven Schmerzbehandlungen inmitten der Opioidmissbrauchskrise.
- Exclusive global out-licensing agreement valued at $3 million in Polyrizon securities
- Potential for additional $3 million in cash milestone fees and royalties
- SCI-160 program showed promising pre-clinical results in pain treatment
- Opportunity for revenue without additional investment in development
- Consideration received in shares rather than cash, which may be less liquid
- Additional cash payments and fees dependent on meeting uncertain development milestones
Insights
The $3 million licensing deal for SciSparc's pain therapy program is a positive development for the company's financial outlook. While the initial consideration is in shares, not cash, it still represents a tangible value for SciSparc's intellectual property. The potential for additional $3 million in milestone fees and future royalties could provide a steady revenue stream if the therapy proves successful. However, investors should note that these future payments are contingent on meeting development milestones, which carries inherent risks. The deal structure allows SciSparc to monetize its research without further investment, potentially improving its cash position and focusing resources on other pipeline projects. This strategic move could enhance SciSparc's financial flexibility in the competitive pharmaceutical landscape.
SciSparc's SCI-160 program shows promising potential in the critical field of pain management. The pre-clinical studies indicating comparable efficacy to high-dose morphine without significant side effects is particularly noteworthy. This could address the pressing need for effective, non-addictive pain treatments amidst the ongoing opioid crisis. The combination of cannabinoids and N-acylethanolamines represents an innovative approach to pain therapy, potentially offering a new class of analgesics. However, it's important to remember that pre-clinical success doesn't guarantee clinical efficacy. The true value of SCI-160 will be determined by its performance in human trials, which will be Polyrizon's responsibility under this agreement. The out-licensing strategy allows for continued development without direct financial burden on SciSparc.
The exclusive global out-licensing agreement between SciSparc and Polyrizon presents some interesting legal considerations. The deal structure, involving share-based compensation and potential milestone payments, is a common approach in biotech licensing. However, the potential conflict of interest with SciSparc's CEO serving on Polyrizon's board warrants scrutiny. While disclosed, this relationship could raise questions about deal terms and valuation. Investors should be aware that milestone-based agreements carry inherent uncertainties and the realization of full value depends on future developments. The global nature of the license also introduces complex international IP considerations. As Polyrizon gains sublicensing rights, careful contract drafting is important to protect SciSparc's interests in downstream agreements and ensure proper royalty flow.
SciSparc will receive consideration in shares, and in addition may receive cash payments and fees if certain development milestones are met
TEL AVIV, Israel, Aug. 16, 2024 (GLOBE NEWSWIRE) -- SciSparc Ltd. (Nasdaq: SPRC) ("Company" or "SciSparc"), a specialty clinical-stage pharmaceutical company focusing on the development of therapies to treat disorders and rare diseases of the central nervous system, announced that it has signed an Exclusive Patent License Agreement (the “License Agreement”) with Polyrizon Ltd. (“Polyrizon”) for the out-licensing of its SCI-160 program (the “Assets”) for the treatment of pain.
According to the License Agreement, Polyrizon will receive exclusive, royalty-bearing global license to develop and sublicense the Assets. In exchange, SciSparc would be entitled to receive consideration in the form of Polyrizon securities valued at
SCI-160 is an innovative, proprietary synthetic combination of cannabinoids and N-acylethanolamines in the field of pain treatment. Based on numerous pre-clinical studies conducted by the Company, several proprietary combinations have been found to be involved in mediating analgesic effects in the peripheral nervous system without causing significant side effects in both acute and chronic pain.
Moreover, in certain studies, SCI-160 was found to be well tolerated, did not cause any significant adverse clinical effects, and had a comparable analgesic effect to high-dose morphine and, in some instances, exerted even greater potency. While prescription opioids are effective treatments for moderate-to-severe pain, the abuse of such opioids is a significant public health issue according to the Centers for Disease Control and Prevention.
“We are pleased to finalize the License Agreement for the out-licensing of the SCI-160 program for treating pain. The License Agreement may allow us to enjoy royalties and milestones payments from the SCI-160 program, without investing additional funds in the development.” said Oz Adler, SciSparc's Chief Executive Officer.
Mr. Oz Adler, SciSparc’s Chief Executive Officer and Chief Financial Officer, is a member of the board of directors of Polyrizon.
About SciSparc Ltd. (Nasdaq: SPRC):
SciSparc Ltd. is a specialty clinical-stage pharmaceutical company led by an experienced team of senior executives and scientists. SciSparc’s focus is on creating and enhancing a portfolio of technologies and assets based on cannabinoid pharmaceuticals. With this focus, the Company is currently engaged in the following drug development programs based on THC and/or non-psychoactive cannabidiol: SCI-110 for the treatment of Tourette Syndrome, for the treatment of Alzheimer's disease and agitation; SCI-160 for the treatment of pain; and SCI-210 for the treatment of autism and status epilepticus. The Company also owns a controlling interest in a subsidiary whose business focuses on the sale of hemp seeds’ oil-based products on the Amazon.com Marketplace.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. For example, SciSparc is using forward-looking statements when it discusses the potential of receiving royalties and development milestone fees and that the License Agreement may enable the Company to enjoy royalies and milestones payments from the SCI-160 program, without investing additional funds in the development. The Company may not receive any royalties or milestone fees as a result of the License Agreement. Since such statements deal with future events and are based on SciSparc’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of SciSparc could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in SciSparc's Annual Report on Form 20-F filed with the SEC on April 1, 2024, and in subsequent filings with the U.S. Securities and Exchange Commission. Except as otherwise required by law, SciSparc disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.
Investor Contact:
IR@scisparc.com
Tel: +972-3-6167055
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