Florida-based Enveric Biosciences Inc. (Nasdaq: ENVB) continued to bleed cash in its second quarter of 2023 with a $6.4 million loss, while making progress toward obtaining federal patents on synthetic psychedelic drugs it hopes to bring to market.
The company, which is focused on developing manmade mental health drugs similar to psychedelics such as psilocybin, increased its losses both year-over-year and sequentially. A year prior, Enveric lost $2.87 million in the quarter that ended June 30, 2022, and last quarter it lost $4.8 million. The latest quarterly loss also didn’t include $1.64 million in non-cash expenses, Enveric reported.
During the second quarter, Enveric reported progress on its synthetic psychedelics, EB-373 and the EVM201 and EVM301 series of compounds, including notices of allowance from the U.S. Patent and Trademark Office for its exclusive control over the drugs in development.
The company also reported positive trial results from animal tests on EB-373, which found “rapid absorption” and other improved benefits when compared to psilocybin. In addition, Enveric scaled up its manufacturing capability for EB-373, expanded its manufacturing arrangement with partner CDMO, and is prepping to apply for approval from the U.S. Food and Drug Administration next year for Enveric’s EVM301 product line.
“The second quarter of 2023 was an exciting and productive period for Enveric,” CEO Joseph Tucker said in a press release, touting “significant steps” made by the company toward bringing new synthetic psychedelic drugs to market.
“Securing strong IP coverage is critical to the value potential of our technologies, and we were pleased to have been awarded multiple Notices of Allowance from the USPTO for composition of matter claims involving EB-373 and our EVM201 and EVM301 Series,” Tucker said, adding that he hopes this will be the first of many patent victories for the company.
“We are continuing to pursue numerous additional patent filings, which are collectively designed to protect our technological advances as we seek to create a portfolio” of synthetic psychedelic drugs, Tucker said.
At the close of the quarter, the company has just over $7 million in the bank and will be adhering to a “cost-reduction plan” heading into 2024.