On Tuesday, Enveric Biosciences' (NASDAQ:ENVB) wholly-owned subsidiary, Akos Biosciences, Inc., entered into two licensing agreements with Restoration Biologics LLC, a biotechnology company focused on treating 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 Restoration Biologics with full control over developing, marketing, and commercializing 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 rates on future sales may range from low single digits to low double digits. These milestone payments could potentially total $61 million for the pharmaceutical license and $21 million for the non-pharmaceutical license.

Joseph Tucker, Director and CEO of Enveric, told Benzinga, "These licensing agreements reinforce the growing recognition of Enveric's innovative pipeline and our ability to generate value from our intellectual property...Our cannabinoid-COX-2 conjugate technology represents a novel approach to addressing inflammation and pain in degenerative joint conditions..."

"This agreement highlights Enveric's commitment to advancing science beyond neuropsychiatry and into broader therapeutic areas... While our primary focus remains on neuroplastogenic therapeutics, this licensing agreement demonstrates the versatility of our platform," Tucker added.

Recently, Enveric Biosciences received a Notice of Allowance from the United States Patent and Trademark Office for a patent application pertaining to its EVM301 Series of molecules being developed as potential treatments for mental health disorders.

Price Action: ENVB stock closed at $1.81 on Monday.

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