Enveric Biosciences Reports $9.6 Million Net Loss for Fiscal Year 2024, Out-licenses EVM201 Program

Enveric Biosciences, Inc. reported a net loss of $9.6 million for the fiscal year ending December 31, 2024, a significant reduction from the $17.3 million loss recorded in the previous year. The company’s total operating expenses decreased to $9.6 million from $16.4 million, primarily due to a 61% reduction in research and development expenses, which fell to $2.8 million from $7.3 million. This decline was attributed to the completion of a research project in Australia and a reduction in workforce aimed at cost-saving measures. General and administrative expenses also decreased by 27% to $6.5 million, reflecting lower consulting and salary costs.

In terms of strategic developments, Enveric has made notable progress in its product pipeline. The company out-licensed its EVM201 program, including the drug candidate EB-002, to MycoMedica Life Sciences, which will handle its development and commercialization. This agreement includes potential milestone payments totaling up to $62 million, along with tiered royalties on future sales. Additionally, Enveric has established a new subsidiary, Enveric Therapeutics Pty. Ltd., in Australia to advance its EVM201 Series, although it has since out-licensed this asset.

Operationally, Enveric has focused on expanding its proprietary Psybrary™, which contains a library of psychedelic-inspired compounds aimed at treating mental health disorders. The Psybrary™ currently includes 20 patent families covering a million potential molecular structures. The company has also initiated a new series, the EVM401 Series, to broaden its pipeline with non-hallucinogenic molecules targeting addiction and neuropsychiatric disorders. As of the end of 2024, Enveric employed six staff members, reflecting a consolidation of its workforce to streamline operations.

Despite these advancements, Enveric faces significant challenges, including ongoing liquidity concerns. The company reported cash reserves of $2.2 million, which are insufficient to meet its operational needs for the next 12 months without additional funding. Management has expressed substantial doubt about the company's ability to continue as a going concern, emphasizing the need for further capital to sustain operations and support product development. The company plans to raise additional funds through public or private equity offerings and collaborations.

Looking ahead, Enveric aims to advance its lead drug candidate, EB-003, through preclinical development and into clinical trials. The company is also focused on addressing its internal control weaknesses, which have raised concerns regarding its financial reporting. Management is actively working to strengthen its internal controls and compliance measures to enhance operational efficiency and investor confidence.