CAMBRIDGE, MA - Enveric Biosciences (NASDAQ: ENVB), a biotech firm focused on neuroplastogenic treatments for neuropsychiatric disorders, has entered into a licensing agreement with Aries Science & Technology for the clinical development and marketing of a patented radiation dermatitis product.
The product, aimed at providing relief for cancer patients experiencing painful side effects from radiation therapy, is protected by a granted US patent application and a pending PCT application.
Radiation dermatitis affects approximately two million cancer patients annually, representing a $400 million market opportunity each year. Aries, renowned for its encapsulation technologies, has been selected by Enveric to further develop this topical product. Aries has also announced the appointment of Hari Harikumar, Ph.D., as Chairman-elect of a new subsidiary dedicated to advancing this treatment.
The agreement, executed through Enveric's subsidiary Akos Biosciences, Inc., could potentially lead to milestone payments for Enveric totaling up to $61 million, along with tiered royalties ranging from 2.5% to 10% on future sales, subject to meeting certain conditions.
Aries, with research labs in Columbus, Ohio, plans to create an investable subsidiary focused on the development, commercialization, and launch of the dermatitis product, and anticipates establishing a pipeline of multiple patented formulations.
Meanwhile, Enveric continues to prioritize its neuropsychiatric programs, including the development of its lead program, EB-003, and EB-002, a next-generation synthetic prodrug of psilocin for the treatment of psychiatric disorders.
This strategic partnership between Enveric and Aries aims to enhance cancer support care while allowing Enveric to concentrate on its core mission of advancing neuroplastogenic small-molecule therapeutics. The information reported is based on a press release statement.
InvestingPro Insights
In the wake of Enveric Biosciences' (NASDAQ: ENVB) new licensing agreement, a deeper financial analysis reveals critical aspects of the company's current fiscal health and market performance. InvestingPro data shows Enveric with a modest market capitalization of $4M and a negative Price/Earnings (P/E) Ratio of -0.09, indicating that investors are currently not expecting earnings growth in the near term. The company's Price to Book ratio, as of the last twelve months leading up to Q1 2024, stands at 0.62, suggesting that the stock may be undervalued relative to its assets.
However, the picture is not entirely optimistic. InvestingPro Tips highlight that Enveric is quickly burning through cash and suffers from weak gross profit margins. Moreover, analysts do not anticipate the company will be profitable this year. These factors, combined with a significant price drop of over 82% in the past year, suggest a cautious approach to the stock. Enveric's liquid assets do exceed its short-term obligations, providing some financial flexibility in the near term, yet the company's long-term profitability remains in question.
For investors seeking a comprehensive analysis of Enveric Biosciences, there are additional InvestingPro Tips available, providing a more in-depth look at the company's financials, market position, and future outlook. Subscribers to InvestingPro can access these valuable insights and may take advantage of a special offer using coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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