Jupiter Neurosciences Inc (NASDAQ:JUNS) shares surged 75.9% in premarket trading Wednesday after announcing a term sheet to acquire exclusive U.S. licensing rights to ALA-002, a next-generation MDMA-based therapeutic candidate.
The clinical-stage biopharmaceutical company will acquire the rights from PharmAla Biotech Holdings Inc. Under the term sheet, Jupiter will make an upfront payment of $3.33 million, comprising $1.50 million in cash and $1.83 million in JUNS common stock at closing.
ALA-002 is a patented, non-racemic MDMA formulation recognized by the FDA as a Novel Chemical Entity. It offers improved cardiovascular safety and reduced abuse liability while preserving therapeutic properties.
The deal follows President Trump’s executive order on psychedelic therapies, which allocated $50 million to support psychedelic medicine programs.
