Enveric Biosciences (NASDAQ:ENVB), a Nasdaq-listed psychedelics biotech firm, has entered into a non-binding term sheet with an undisclosed biotech company (licensee) for an exclusive license to two patented methods aimed at treating breast cancer and other cancers. These methods utilize cannabinoids in combination with chemotherapeutic drugs.

As per the agreement, the licensee will obtain an exclusive, global license to these methods, along with any devices and drugs developed to implement them. The licensee will also take on all future preclinical and clinical development responsibilities on a royalty-bearing basis for both human and animal pharmaceutical applications.

Subject to certain conditions, the licensee will compensate Enveric with a License Execution Fee and provide development and sales milestones totaling up to $61 million. Additionally, Enveric will receive royalties ranging from 2.5% to 10% on all future sales. The licensee also retains a cash buyout option.

"We are excited to see the licensee taking this innovative approach in an effort to advance a novel treatment based on our discovery," stated Joseph Tucker, Ph.D., director and CEO of Enveric. "We look forward to partnering with the licensee and are confident in their leadership to translate these discoveries into promising treatments for cancer patients. Importantly, this agreement further supports Enveric's discovery capabilities and its ability to advance novel treatments for cancer and to make them available for others to pursue commercially outside the company with strong future potential upside to Enveric."

Based on preliminary work performed by a renowned UK-based research hospital, it is believed that the methods of using novel treatment regimens that include cannabinoid combinations have potentially a significant impact on patients living with breast and other cancers,  It is anticipated that the licensee may advance these methods into the next stages of development, and further into clinical trials which would demonstrate a major value driver for both Enveric and the licensee. 

See also: Study Discovers Medical Cannabis Drives 6x Improvement In Killing Breast Cancer Cells

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Clear Medical Benefits 

The news of the licensee deal comes on the heels of the DEA's move to reschedule marijuana, one source of cannabinoids, as a Schedule III controlled substance. 

“The recent move by the Biden Administration to reschedule marijuana, the source of cannabinoids, followed [an] in-depth study by the U.S. Department of Health and Human Services (HHS), and was in response to the clear medical benefit of this class of compounds," Tucker, told Benzinga. "Enveric is grateful that the Biden Administration, HHS, U.S. Department of Justice, and the U.S. Drug Enforcement Agency are all working together to remove obstacles to the clinical development of promising new drugs, such as these we just signed a term sheet for.”

Breast Cancer alone has approximately 311,000 new cases diagnosed annually in the US, and over 4 million women have a history of, or are in treatment, for breast cancer in the US. The licensed methods also apply to many other forms of cancer that afflict millions more patients in the US.

Price Action

Enveric Biosciences closed Tuesday’s market session 3.26% lower at 89 cents per share. 

Now read: Enveric Biosciences Optimistic On Q4 And Full-Year Results: ‘Psychedelic-Inspired’ Meds For Future Growth

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