Enveric Biosciences' Revenue Drops In Q3 2023 As Next-Gen Psychedelics Advance To Clinical Trials

Enveric Biosciences ENVB, a biopharma company developing novel neuroplastogenic small-molecule therapeutics for the treatment of anxiety, depression and addiction disorders, reported its financials for Q3 2023 ended September 30, 2023, showing:

• Cash and cash equivalents of $4.27 million by Sept. 30, an almost 40% QoQ decrease compared to the $7.08 million on June 30, and an almost 75% fall from the $17.7 million held by Dec. 31, 2022.

See full Q2 results.

• Three and nine-month R&D expenses of $1.4 million and $5.9 million, vs. $2.0 million and $6.1 million in the same comparable periods in 2022. 

• Three and nine-month G&A expenses of $2.0 million and $7.9 million, vs. $3.5 million and $8.8 million in the same comparable periods in 2022.

• Three and nine-month net cash used in operations of $2.98 million and $12.3 million.

• Three and nine months net loss attributable to shareholders of $2.82 million and $14.0 million, vs. $2.60 million and nearly $10 million during the same comparable periods in 2022.

• Accumulated deficit of $93.0 million by Sept. 30, a 3.1% QoQ increase compared to $90.2 million by June 30 and a 17% nine-month rise compared to $79.2 million by Dec. 31, 2022.

Management Comments

CEO and director Dr. Joseph Tucker said Q3 progress involved the completion of “several initiatives” toward enhancing the value of Enveric’s neuroplastogenic small-molecule therapeutics aiming for the clinic.

These included a “significant” strengthening of its development portfolio IP: two new U.S. patents protecting the novel non-hallucinogenic molecules EVM301 series and lead EVM201 series psilocin prodrug candidate, EB-373; six non-U.S. patent applications around the EVM301 series; “several” U.S. notices of allowance for claims related to both EVM301 and EB-373; and a new application for the company’s AI-based methods for identifying and optimizing novel tryptamine derivatives. 

Tucker added that the team “showcased” the leading drug discovery and research engine behind the EVM301 series of compounds, with academic publications and presentations, “establishing a leading position in the psychedelic and psychedelic-inspired drug development industry to deliver next-generation treatments, with low and non-hallucinogenic compounds” throughout 2023’s Q3 and into Q4. 

During Q3 Enveric completed manufacturing and preclinical activities toward regulatory clearance for a first-in-human trial of EB-373. These included exploratory animal studies that demonstrated oral bioavailability and well-tolerated side effects, plus potentially reduced gastrointestinal upset and vomiting and rapid onset of action and systemic clearance, improving on psilocybin’s pharmacokinetic characteristics of psilocybin.

Enveric’s expected key milestones for the rest of 2023 include identifying an EVM301 series lead candidate, with which the team anticipates launching a “thorough and expedited” preclinical development program in 2024 and toward an Investigational New Drug (IND) application.

Photo: Benzinga edit with photo by aiyoshi597, Gisele Yashar, Bacsica and Gorodenkoff on Shutterstock.