Enveric Biosciences (NASDAQ: ENVB) announced that the United States Patent and Trademark Office issued U.S. Patent No. 11,752,130, titled “Carboxylated Psilocybin Derivatives and Methods of Using,” pertaining to the Company’s EVM301 Series of molecules being developed as potential treatments for mental health disorders.
“Our EVM301 Series consists of small molecule therapies designed with the intent to enhance neuroplasticity while reducing or eliminating hallucinations associated with other psychedelic or psychedelic-inspired agents,” said Joseph Tucker, Ph.D., Director and CEO of Enveric. “This unique design could be potentially game-changing in the treatment of depression and anxiety as it offers the opportunity to administer psilocybin-derived medications without the requirement for a healthcare professional to observe during dosing. We believe this could greatly enhance the commercial opportunity of EVM301 Series-based therapies, benefiting patients and healthcare systems broadly by reducing the need for costly and time-intensive requirements for supervision throughout the treatment. For these reasons, Enveric is seeking to build a robust intellectual property portfolio for our EVM301 Series with this U.S. patent providing a critical IP cornerstone.”
This new patent, issued September 12, 2023, provides Enveric with intellectual property rights with claims to novel compositions and pharmaceutical drug formulations for a family of carboxylated derivatives of tryptamine-based drug candidates. The company said it expects the patent to further strengthen and add value to Enveric’s EVM301 Series of compounds, which are undergoing lead optimization and preclinical candidate characterization procedures.
Last month Diamond Equity Research issued a report covering the company although it should be noted that Diamond was paid by Enveric to perform the analysis which noted the company’s market cap was lower than its cash position.
The report stated, “We assume a discount rate of 12.50% and a probability of success for EB-373 at 10%, resulting in a valuation of $21.02 million based on our risk-adjusted DCF approach. Notably, the company’s current market capitalization of $4.86 million is lower than its net cash position of $7.07 million. It’s important to consider that this situation, commonly found in non-revenue-generating biotech companies, often arises due to elevated risks and the potential for higher cash burn rates. Additionally, we undertook a comparable company-based valuation analysis, assigning a weightage of 10% to this relative valuation approach. The blended approach resulted in a valuation of $21.47 million, or $10.00 per share, contingent on successful execution by the company.”