Through its wholly-owned subsidiary, Cybin IRL Limited, Canadian-based psychedelics biotech Cybin Inc. (NYSE:CYBN) signed an agreement with next-gen psychedelics producer Mindset Pharma Inc. (OTCQB:MSSTF) for an exclusive intellectual property license related to preclinical compounds within the latter’s Family 1 proprietary class of tryptamine-based molecules, excluding Mindset’s lead drug candidate MSP-1014.
The license purchase fee was set at $500,000, with additional milestones payable upon achieving certain milestones, and will provide Cybin access to a catalog of molecules –both chemistry and properties- complementing its current preclinical drug candidates library.
The agreement is expected to expand Cybin’s R&D platform, providing a runway and pipeline of future drug candidates while further broadening the space where the company has protected access to patent-eligible molecules and formulations, therefore strengthening Cybin’s IP reach and scope of protection toward continued investment in psychedelic therapeutics.
The company’s CEO, Doug Drysdale explained that besides progressing clinical-stage programs of CYB003 and CYB004, Cybin is focused on M&A opportunities “to strengthen our competitive advantage and support our goal of developing new and innovative psychedelic treatments,” and expressed being grateful for working with Mindset, which he considers to have “a deep-rooted understanding of psychedelic science.”
On behalf of Mindset, CEO James Lanthier also expressed respect for its partner’s ability to assemble “a leading psychedelic drug development organization” over the past couple of years and agreed that “both our companies share the same ultimate goal of discovering and developing superior new psychedelic treatments to better meet the needs of patients.”
Facing the new partnership, Lanthier explained Mindset’s future plans: “We are pleased that our novel preclinical compounds have been recognized to potentially support their R&D pipeline. This licensing agreement is another example of Mindset successfully executing on its scientific and business strategies. Coupled with our existing collaboration, Mindset now has multiple ‘shots on goal’ for commercializing its innovations, with additional potential from its recently announced new families.”
As for additional payments, the completion of agreed clinical development milestones -including approval and commercialization of a first drug candidate- could total up to $9,500,000. The arrangement also includes a sales royalty of approx. 2% for all commercialized licensed products within the scope of the exclusive agreement.
Specifically, the first milestone payment is set at $500,000, upon completion of Phase 1 clinical trial. As decided by Cybin, these payments may be made in cash, the company’s common shares or a combination of both.
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