Revive Therapeutics Ltd (OTCMKTS:RVVTF) has announced that further to the December 21, 2020 press release, it has signed an asset purchase agreement with Newscope Capital Corporation (OTCMKTS:PHRRF). The company entered the agreement to acquire PharmaTher Inc.’s full intellectual property rights relating to psilocybin.
Revive to pay Newscope $10 million for the acquisition of psilocybin IP rights
Most importantly, PharmaTher is a Newscope’s wholly-owned subsidiary that focuses on psychedelics pharmaceutical research and development. According to the agreement, Revive will pay around C$10 million to acquire the IP rights. The company will settle the payment by paying $3 million in cash after closing the deal with $4 million payable through securities issuance in shares of Revive, and the remaining $3 million will be in cash or Revive capital securities.
The last payment will be subject to Revive meeting certain milestones, including receiving FDA orphan drug designation for psilocybin in stroke, cancer, traumatic brain injury treatment, regulatory market authorization approval from the FDA, and initiation of phase 2 clinical study. Besides the Purchase Price, Newscope will also receive low single-digit sales on future net sales for products derived from the purchased Assets.
Revive will acquire assets, including all intellectual property work derived from the National health research Institutes’ (NHRI) pre-clinical research initiatives in stroke and traumatic brain injury related to psilocybin targeting Orphan Drug Designation from the FDA. The main provision la patent applications with the USPTO include psilocybin in neurological brain injury treatment, psilocybin in cancer treatment, and psilocybin pharmaceutical combination therapies.
Revive advancing psilocybin program development
Michael Frank, Revive’s CEO, said that the company has solidified its foundation to have a psychedelics pharmaceutical platform focusing on novel psilocybin-based therapeutics with this acquisition. The therapeutics includes an oral thin film development in partnership with the University of Wisconsin-Madison and a novel psilocybin version based on a natural biosynthesis platform created by North Carolina State University’s professor Gavin Williams. Frank said that the company is now in an apposition to advance its psilocybin program for future clinical development in mental health, neurological disorders, and cancer.