Cybin Inc. (NEO: CYBN) (NYSE AMERICAN: CYBN) has now strengthened its intellectual property reach with an extensive catalogue of psychoactive tryptamine-based molecules.
On Tuesday, the company announced that it had acquired an exclusive license to a series of psychedelic compounds from Mindset Pharma Inc. (CSE: MSET) (FSE: 9DF) (OTCQB: MSSTF).
The new agreement will broaden Cybin’s drug discovery and development platform and help the company develop future novel drug candidates going forward.
“This exclusive license bolsters the breadth of Cybin’s IP holdings while adding a significant number of compounds to our growing library of psychedelic derivative drug development candidates,” said Doug Drysdale, CEO of Cybin.
“In addition to the value created from progressing our clinical-stage programs for CYB003 and CYB004, our discovery and development engine will continue to be an asset for the Company as we leverage strategic M&A opportunities, including this one, to strengthen our competitive advantage and support our goal of developing new and innovative psychedelic treatments for mental health conditions and other areas of high unmet need,” added Drysdale.
“We are pleased to work with Mindset who, like Cybin, has a deep-rooted understanding of psychedelic science.”
The agreement will include an initial US$500,000 license fee payment to Mindset and additional “milestone payments” that will be payable once particular milestones referred to in the companies agreement have been successfully completed. Those milestone payments could potentially total up to US$9.5 million, and the first milestone payment worth US$500,000 will be owed to Mindset once a phase I clinical trial has been completed by Cybin.
Milestone payments to Mindset will be given in cash or common shares in the capital of Cybin, or a combination of the two at the sole discretion of the company, pending the approval of Neo Exchange Inc., upon successful completion of the agreed milestones and once the first drug candidate has been approved and commercialized.
Mindset will also receive a 2 per cent sales royalty on any commercialized licensed products relevant to the scope of the agreement.
“Over the last two years, Cybin has assembled a leading psychedelic drug development organization and we are pleased that our novel preclinical compounds have been recognized to potentially support their R&D pipeline. Both our companies share the same ultimate goal of discovering and developing superior new psychedelic treatments to better meet the needs of patients,” said James Lanthier, CEO of Mindset Pharma.
“This licensing agreement – Mindset’s second such agreement to advance its innovations to clinical study – is another example of Mindset successfully executing on its scientific and business strategies.”