Enveric Biosciences unit in licensing pacts with Restoration Biologics

Enveric Biosciences (ENVB) announces that its wholly-owned subsidiary, Akos Biosciences has entered into two licensing agreements with Restoration Biologics a biotechnology company focused on the treatment of joint disease. The companies have executed two licenses for Akos’ cannabinoid-COX-2 conjugate compounds, for pharmaceutical and potential non-pharmaceutical applications. The two licenses grant Restoration Biologics use of the technology for all human and animal applications. Restoration Biologics initially plans to focus on joint pathology, such as osteoarthritis and rheumatoid arthritis. The two exclusive, royalty-bearing global licenses provide full control to Restoration Biologics to develop, market, and commercialize the conjugate compounds, which are novel chemical structures that include cannabinoids in conjugate form with COX-2 inhibitors and cannabinoids in conjugate form with selected steroids. Under these licenses, Enveric, through its subsidiary, Akos, may receive future development and sales milestone payments, assuming certain conditions are met, including successful product development and commercialization. Royalty rate percentages are tiered, depending on meeting certain sales criteria, and range from low single digit to low double digits on future sales. These milestone payments could potentially add up to a total of $61M for the pharmaceutical license and $21M for the non-pharmaceutical license. “Restoration Biologics is a young and innovative biotechnology company with nationally recognized experts, and we are very pleased that it has partnered with Enveric to advance the development of these important health care products,” said Joseph Tucker, Ph.D., Director and Chief Executive Officer of Enveric. “We look forward to working with Restoration Biologics, and we are confident in their leadership and capabilities to further develop the conjugate compounds for both pharmaceutical and potential non-pharmaceutical applications, expanding treatment options for patients with joint disease. Executing these next two license agreements once again supports the value of Enveric’s extensive portfolio of assets, following the two previously announced out-license agreements for Enveric’s patented CBD topical product and EB-002 drug candidate.”