TEL AVIV - SciSparc Ltd. (NASDAQ:SPRC), an Israel-based clinical-stage pharmaceutical company, has announced the signing of a non-binding letter of intent with an undisclosed biotech firm for the out-licensing of its SCI-160 program, aimed at treating pain.
Under the terms of the agreement, the biotech company will have exclusive rights to develop and sublicense the program. SciSparc is set to receive $3 million in ordinary shares and pre-funded warrants, with additional potential payments and fees that could total another $3 million if certain milestones are achieved.
SCI-160 is a synthetic cannabinoid formulation that has shown promise in pre-clinical studies for treating pain without causing significant side effects. The formulation includes a proprietary combination of cannabinoids and Palmitoylethanolamide, which has demonstrated analgesic effects comparable to high-dose morphine and in some cases, greater potency.
The company's CEO, Oz Adler, stated that this agreement would enable SciSparc to concentrate on its primary pharmaceutical endeavors, which include late-stage programs targeting Alzheimer's disease, Tourette syndrome, and autism. Adler expressed confidence that focusing on these core areas would maximize shareholder value.
The push to find alternative pain treatments comes amid a backdrop of rising concerns over prescription opioid abuse, which has seen a significant increase in overdose deaths over the years. The Centers for Disease Control and Prevention and The National Center for Health Statistics highlight the gravity of the opioid crisis, with deaths involving prescription opioids rising from 3,442 in 1999 to 14,716 in 2022.
SciSparc specializes in cannabinoid-based pharmaceuticals and is also engaged in drug development programs for conditions such as Alzheimer's disease, Tourette Syndrome, autism, and status epilepticus. Additionally, the company has a controlling interest in a subsidiary that sells hemp seed oil-based products on Amazon.com (NASDAQ:AMZN).
This news is based on a press release statement.
In other recent news, SciSparc Ltd. has announced its intent to spin off its advanced clinical-stage pharmaceutical portfolio into Miza III Ventures Inc. This prospective arrangement, which values SciSparc's assets at approximately $11.6 million, would result in SciSparc holding between approximately 75% to 84.53% of the combined entity.
The portfolio includes SCI-110 for Tourette syndrome and Alzheimer’s disease, and SCI-210 for autism. The transaction aligns with SciSparc's strategy to enhance shareholder value and follows its merger with AutoMax Motors Ltd.
In addition, SciSparc has secured a European patent for "Compositions and Methods of Potentiating Antimicrobials", which combines antibiotics with cannabinoids to improve the effectiveness of antimicrobials. This patent aligns with a similar one issued by the United States Patent and Trademark Office and is part of SciSparc's global strategy to bolster its intellectual property portfolio.
Furthermore, the company has announced a strategic merger with AutoMax Motors Ltd., with SciSparc shareholders and AutoMax equity holders owning approximately 50.01% and 49.99% of the resulting company's share capital, respectively.
InvestingPro Insights
As SciSparc Ltd. (NASDAQ:SPRC) forges ahead with its strategic licensing agreement for the SCI-160 program, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro, SciSparc's market capitalization stands at a modest $2.48 million, reflecting the size and scale of the company within the pharmaceutical industry. Despite the challenges, the company has achieved a striking revenue growth of 113.73% in the last twelve months as of Q4 2023, signaling potential in its research and development efforts.
InvestingPro Tips reveal a mixed financial picture for SciSparc. On one hand, the company holds more cash than debt on its balance sheet, which could provide some financial stability and flexibility. On the other hand, SciSparc is quickly burning through cash, which may raise concerns about its long-term sustainability, especially given that analysts anticipate a sales decline in the current year. Additionally, the company has not been profitable over the last twelve months, a common situation for many clinical-stage pharmaceutical companies focused on research and development.
The stock has experienced significant volatility, with an impressive return over the last week of 18.93%, yet it has also seen a substantial price decline over the past year, with the stock trading at only 5.04% of its 52-week high. These fluctuations underscore the inherent risks and opportunities associated with investing in small-cap biotech stocks. For investors considering SciSparc, it's important to weigh these factors and consider the additional 11 InvestingPro Tips available to help make informed decisions. Remember, you can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to valuable insights that could shape your investment strategy.
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