Jupiter Neurosciences, Inc. (NASDAQ:JUNS) shares are trading higher Wednesday after the company announced it will acquire the U.S. licensing rights to ALA-002 from Pharmala Biotech.
- Jupiter stock is showing upward momentum. What’s next for JUNS stock?
Jupiter Advances CNS Innovation Strategy With ALA-002 Deal
Under the proposed agreement, Jupiter would receive exclusive, perpetual U.S. rights to ALA-002, PharmAla's lead drug candidate and a next-generation, non-racemic MDMA novel chemical entity. The total potential transaction value exceeds $100 million through upfront consideration, development milestone payments and royalties.
PharmAla would receive upfront consideration of approximately $3.33 million at closing, including $1.50 million in cash and $1.83 million in Jupiter common stock. Jupiter also agreed to deposit $600,000 into escrow upon execution of the term sheet.
ALA-002 has been recognized by the FDA as a Novel Chemical Entity and was designed to improve cardiovascular safety and reduce abuse liability compared to racemic MDMA while preserving therapeutic properties used in MDMA-assisted therapy.
Jupiter CEO Christer Rosén said the proposed transaction aligns with the company's long-term focus on CNS innovation and therapies targeting brain health and neuropsychiatric conditions.
The proposed transaction remains subject to due diligence, definitive agreements and regulatory approvals.
Jupiter Shares Rise
JUNS Price Action: At the time of publication, Jupiter shares are trading 12.50% higher at 36 cents, according to data from Benzinga Pro.
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