Enveric’s lead drug candidate shows additional receptor activity

CAMBRIDGE, Mass. - Enveric Biosciences (NASDAQ:ENVB), a biotechnology company currently trading at $1.25 per share and showing signs of being undervalued according to InvestingPro Fair Value metrics, announced Tuesday that its lead drug candidate EB-003 demonstrates activity as an agonist of the serotonin receptor 5-HT1B, expanding its previously known mechanism of action.

According to the company’s press release, the 5-HT1B receptor is a validated target for treatments of several neurological conditions including major depressive disorder, Parkinson’s disease, migraines, and cluster headaches. The company maintains a strong liquidity position with a current ratio of 4.08, indicating adequate resources to support its development programs.

Study results showed EB-003 acts as a 5-HT1B agonist with an EC50 of 110 nM. This finding adds to earlier data indicating the compound functions as a partial agonist of the 5-HT2A receptor, which the company believes contributes to neuroplastogenic effects without causing hallucinations.

"The 5-HT1B receptor, found predominantly in the frontal cortex, basal ganglia and hippocampus, is a validated therapeutic target of some well-known CNS drugs," said Joseph Tucker, CEO of Enveric Biosciences, in the statement.

The company previously reported positive pharmacology data for EB-003, including oral bioavailability and brain exposure in rodent models. The drug candidate remains in preclinical development, with IND-enabling activities planned to continue through 2025. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, though analysts don’t expect profitability this year. Get access to 8 more exclusive InvestingPro Tips for deeper insights into ENVB’s financial health.

Enveric Biosciences describes itself as a biotechnology company developing neuroplastogenic small-molecule therapeutics for psychiatric and neurological disorders. The company utilizes its proprietary Psybrary™ platform to develop novel drug candidates.

The announcement represents additional preclinical findings for a compound still in early development stages, with no human clinical trials yet initiated. Despite the stock’s significant decline of over 76% year-to-date, the company’s price-to-book ratio of 0.79 suggests potential value for investors willing to accept the risks of early-stage biotech development.

In other recent news, Enveric Biosciences has announced several significant developments. The company has been granted a U.S. patent for novel compounds that may aid in treating sleep and central nervous system disorders. These molecules, which selectively bind to the melatonin MT1 receptor, could advance new sleep therapeutics. Additionally, Enveric has reported promising preclinical results for its leading drug candidate, EB-003, in a depression model, showing decreased depression-like behavior in mice. The compound demonstrated efficacy comparable to established antidepressants and showed no adverse effects in preliminary safety evaluations.

Furthermore, Enveric has filed a provisional patent for new molecules with potential applications in neurodegenerative diseases, focusing on enhancing brain-derived neurotrophic factor activity. The company is also advancing its lead molecule, EB-003, towards clinical trials for neuropsychiatric disorders. In a separate development, Enveric has changed its accounting firm, dismissing Marcum LLP and engaging CBIZ CPAs P.C. for future fiscal years. This transition follows the acquisition of Marcum’s attest business by CBIZ CPAs and aims to address previously identified internal control weaknesses. These updates highlight Enveric’s ongoing efforts to expand its intellectual property portfolio and strengthen its financial oversight.

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