SciSparc Signs Non-Binding Letter of Intent for Exclusive Global Out-Licensing of Pain Treatment for Approximately $6 million
SciSparc (Nasdaq: SPRC) has signed a non-binding letter of intent (LOI) for the exclusive global out-licensing of its SCI-160 pain treatment program. The deal, valued at approximately $6 million, includes:
1. $3 million in ordinary shares and pre-funded warrants of the undisclosed biotechnology company
2. Potential additional payments and execution fees of about $3 million in cash, subject to meeting certain milestones
SCI-160 is a proprietary synthetic cannabinoid formulation that has shown promising results in pre-clinical studies, demonstrating analgesic effects comparable to high-dose morphine without significant side effects. This development aligns with efforts to address the opioid crisis, as prescription opioid-related deaths have increased significantly since 1999.
- Potential $6 million deal for out-licensing SCI-160 pain treatment program
- Promising pre-clinical results showing analgesic effects comparable to high-dose morphine
- Opportunity to focus on core late-stage programs for Alzheimer's, Tourette syndrome, and autism
- Non-binding nature of the letter of intent
- Uncertainty in receiving additional $3 million cash payment, dependent on meeting milestones
The non-binding letter of intent (LOI) outlines a potential out-licensing agreement worth approximately
From a valuation perspective, the out-licensing deal allows SciSparc to monetize its SCI-160 program and reduce its financial risk. It also enables the company to focus resources on its core programs targeting Alzheimer’s, Tourette syndrome and autism, which may provide higher long-term returns. However, it's important to note that the non-binding nature of the LOI introduces uncertainty, as the deal is not guaranteed to materialize. Investors should watch for further updates confirming the final agreement.
SCI-160 is a synthetic cannabinoid formulation aimed at treating pain without the significant side effects commonly associated with opioid use. Pain management is a critical area of need, as the opioid crisis remains a pressing public health issue. The pre-clinical studies indicate promising results, with SCI-160 showing comparable or superior efficacy to high-dose morphine while maintaining a better safety profile. This could make SCI-160 a potentially disruptive technology in the pain management sector.
However, it is important to understand that these findings are based on pre-clinical data. The real challenge will lie in translating these results into clinical success, which entails rigorous testing and regulatory approval. If the out-licensing biotechnology company can navigate these hurdles effectively, SCI-160 could significantly impact the pain management market. Nonetheless, investors should be cautious and look for further clinical data to validate these promising early results.
SciSparc will receive additional payments and execution fees if certain milestones are met
TEL AVIV, Israel, July 17, 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 a non-binding letter of intent (“LOI”) with an undisclosed biotechnology company to pursue the out-licensing of its SCI-160 program (the “Assets”) for the treatment of pain.
According to the LOI, the biotechnology company would receive exclusive, royalty-bearing global licenses to develop and sublicense the Assets. In exchange, SciSparc would be entitled to receive payment of
SCI-160 is an innovative, proprietary synthetic cannabinoid formulation for the treatment of pain. Based on pre-clinical studies conducted by the Company, the proprietary combination of cannabinoids and Palmitoylethanolamide has 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 individual instances, exerted even greater potency. While prescription opioids are effective treatments for moderate-to-severe pain, abuse of such opioids is a significant public health issue according to the Centers for Disease Control and Prevention. According to The National Center for Health Statistics, drug overdose deaths involving prescription opioids rose from 3,442 in 1999 to 14,716 in 2022.
“This LOI will allow us to focus on the Company's core pharmaceutical activities that involve three late-stage programs for the treatment of Alzheimer's disease, Tourette syndrome, and autism. We believe that the Company's strong portfolio will enable us to maximize shareholder value,” said Oz Adler, SciSparc's Chief Executive Officer.
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 proposed transaction and that the LOI would allow the Company to focus on its core pharmaceutical activities that would, in turn, enable it to maximize shareholder value. The Company may not enter into or complete a definitive agreement for the proposed transaction with the biotechnology company or, even if it does, it may not create shareholder value. 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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