Business
Enveric Biosciences Reports First Quarter 2023 Financial Results and Operational Highlights
Announced cost reduction plan resulting in approximately 40% to 55% decrease in expenses and extension of financial runway into Q1 2024 Continued to advance
About this update from Enveric Biosciences, Inc.
[{"type":"text","content":"\n\nAnnounced cost reduction plan resulting in approximately 40% to 55% decrease in expenses and extension of financial runway into Q1 2024\n\n\n\nContinued to advance pipeline of small molecule therapeutics for the treatment of mental health disorders, including EB-373 for the treatment of anxiety disorder and EVM301 Series\n\n\n\nAnnounced termination of proposed spin-off of cannabinoid clinical development pipeline to publicly traded company; Enveric now engaging with strategic advisors to identify and pursue alternative value-creating opportunities for cannabinoid assets\n\n\n\n CAMBRIDGE, Mass.--(BUSINESS WIRE)--\nEnveric Biosciences, Inc. (NASDAQ: ENVB) (“Enveric” or the “Company”), a biotechnology company dedicated to the development of novel small-molecule therapeutics for the treatment of anxiety, depression, and addiction disorders, today provided a corporate update and reported financial results for the first quarter of 2023 ended March 31, 2023.\n\n\nEnveric announced a cost reduction plan to extend its financial runway into the first quarter of 2024. The operational streamlining entailed an approximately 35 percent reduction in full-time personnel, the cancelation of 7 consulting contracts focused on the cannabinoid programs and a transition from third-party service providers supporting R&D efforts to internal science teams performing this work. Separately, Enveric announced that the proposed spin-off of cannabinoid clinical development pipeline assets to Akos Biosciences, Inc. (“Akos”) is not proceeding due to the holders of the Akos Series A Preferred Stock electing to exercise their right to require Enveric to redeem all of the Akos Series A Preferred Stock due to an inability to meet listing requirements on a national exchange. Enveric now plans to engage with strategic advisors to identify and pursue alternative routes to capture value from these assets.\n\n\n“Underpinning Enveric’s business and development strategy is a continued focus on maximizing the value of our novel drug development programs to produce positive returns for our shareholders. In this pursuit, the Company has been diligently working to develop a robust and differentiated pipeline of small-molecule therapeutics for the treatment of mental health disorders,” said Joseph Tucker, Ph.D., Director and CEO of Enveric Biosciences. “Today’s announce...