Enveric Biosciences (NASDAQ: ENVB) stock soared over 70% on Thursday after the company inked three non-binding term sheets with an undisclosed entity.
Enveric Biosciences (ENVB) has announced the signing of three non-binding term sheets with an undisclosed biotechnology firm to pursue the out-licensing of compounds.
Florida-based biotechnology firm said these agreements have the potential to yield substantial financial gains, with milestone payments and execution fees reaching an impressive $200 million. However, these gains hinge on specific conditions, including securing approval for investigational new drug (IND) applications and successfully navigating through Phases I to III testing for the licensed products.
Moreover, Enveric reveals that royalty rates on each of these licenses may vary between 2.5% and 10% on future sales, contingent upon meeting predefined sales criteria.
Joseph Tucker, Ph.D., CEO of Enveric, expressed optimism about the collaboration, stating,
“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.”
He further underscored the potential financial rewards for Enveric, stating,
“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.”
Enveric Biosciences (NASDAQ: ENVB) Stock Reaction
ENVB stock shot up 73.27% to close at $1.44 on Thursday. The traders had exchanged hands with 176,170,071 (176.17 million) shares compared to the average daily trading volume of 331.74K.
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