Enveric Biosciences, a biotechnology company dedicated to the development of novel neuroplastogenic small-molecule therapeutics for the treatment of depression, anxiety, and addiction disorders, is pleased to announce that its wholly-owned subsidiary, Akos Biosciences, Inc. (“Akos”), has entered into two licensing agreements with Restoration Biologics LLC (“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 $61 million for the pharmaceutical license and $21 million 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.”
“This opportunity presents an exciting and novel approach to the treatment of joint disease and potentially the enhancement of biological implants for patients suffering with joint injuries,” said Suzanne Tabbaa, Ph.D., Co-Founder of Restoration Biologics. “We highly value the patented technology developed by Enveric, and the confidence placed in our organization by Enveric,” said Dr. William D. Bugbee, Co-Founder and world-renown orthopedic surgeon and researcher in the joint restoration field at the Scripps Institute. Farsh Guilak, PhD, Chief Scientific Officer of Restoration Biologics and nationally recognized scientific leader in the field of regenerative medicine and joint pathology added, “Restoration Biologics appears uniquely positioned to achieve positive outcomes from this promising technology, and we look forward to its practical application to increase the successful treatment of patients, especially those suffering from joint disease.”
