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NASDAQ:ENSC
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Ensysce Biosciences (NASDAQ:ENSC) released its 3Q2024 results that showed a much improved cash balance of $4.2 million due in large part to the grant described below and some financial offerings which we have detailed in the past. The company continues to make progress, but notes that future revenue will likely be lower than that seen in 3Q due to the expiration of one grant. Company management also noted that the company’s stock has regained compliance with the NASDAQ stock exchange—a very positive development in our view.
Earlier in the quarter, the company announced that it has received a $14 million grant from the National Institute of Health (NIH) for the continued clinical development of PF614-MPAR—the company’s abuse-deterrent opioid with overdose protection. The award will be paid over three years and, according to the company, allowing for the completion of the Phase 1b clinical trial. This award creates multiple positive impacts for the company. First, the money from the grant will help fund operations and further clinical testing, while allowing the company to limit future potential dilution to shareholders. Additionally, the award represents, in our view, another positive vote from a respected medical organization that has seen the initial data and believes in the potential benefits of this treatment.
We aren’t going to rehash recent reports that have outlined the positive test results for PF614 and PF614-MPAR. But, as a reminder, these tests have shown that PF614 can provide the much-needed pain relief that is currently available through the highly abused oxycodone, while having abuse resistant properties and lasting longer. Additionally, an important reminder that PF-614-MPAR received an FDA grant of Breakthrough Therapy designation, which allows ENSC the opportunity to accelerate clinical programs and commercialization plans. The grant, which has been applied to fewer than 300 drugs historically, illustrates the importance and urgency that these solutions are needed. We are again reiterating our belief that the treatments being developed by Ensysce will be game changers in the pain relief market and again suggest that investors take a strong look at ENSC.
PF614-MPAR has been shown in testing to have the potential to provide much needed pain relief to patients and provides protections against taking too many pills, which often leads to debilitating addiction. The technology involved causes the drug to become inactive when dosing requirements are exceeded—greatly diminishing the “incentive” patients may have to take more than the prescribed dose.