DealsMay 20, 2026, 09:51 AM
Jupiter Neurosciences secures $100M term sheet for ALA-002 US rights
AI Summary
Jupiter Neurosciences entered a non-binding term sheet with PharmAla Biotech to acquire exclusive, perpetual U.S. licensing rights for ALA-002, a next-generation MDMA formulation. The deal includes an upfront payment of $3.33 million ($1.5M cash, $1.83M equity), potential development milestones of $23.33 million, and commercialization milestones of $73.33 million, plus a perpetual 3% royalty on U.S. net sales. This transaction positions Jupiter in the growing psychedelic therapeutics market, following a recent Executive Order accelerating psychedelic medicine. The definitive agreement is expected within 90 days, subject to due diligence and other conditions.
Key Highlights
- Secured non-binding term sheet for exclusive, perpetual U.S. rights to ALA-002 from PharmAla Biotech.
- Upfront consideration of $3,333,333 ($1,500,000 cash, $1,833,333 in equity, subject to 180-day lock-up).
- Development milestones: $3,333,333 for Phase 3 initiation, $20,000,000 for FDA approval.
- Commercialization milestones: $10M, $30M, $33.33M upon achieving specified U.S. annual net sales thresholds.
- Perpetual 3% royalty on U.S. net sales of licensed products after all commercialization milestones.
- Company deposited $600,000 into escrow, credited against upfront cash, or paid to PharmAla as reverse termination fee.
- 90-day exclusivity period for PharmAla regarding competing U.S. transactions for ALA-002.
- ALA-002 is a patented, non-racemic MDMA formulation recognized by FDA as a Novel Chemical Entity.
Price Impact
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