PharmAla Biotech Holdings Inc. (CSE: MDMA, OTCQB: MDXXF) signed a definitive license agreement on July 20, 2026, granting Jupiter Neurosciences, Inc. (NASDAQ: JUNS) exclusive, perpetual rights to develop, manufacture, and commercialize ALA-002 in the United States.

The total consideration payable to PharmAla under the agreement is up to approximately $100 million. This includes a $3,333,333 upfront payment — comprised of $1,500,000 in cash and $1,833,333 in Jupiter common stock subject to a 120-day lock-up — and up to $96,666,666 in contingent milestone payments tied to development, regulatory, and sales targets.

Development and regulatory milestones total up to $23,333,333, including $3,333,333 upon first patient dosing in a Phase 3 clinical trial and $20,000,000 upon FDA approval of a New Drug Application. Commercialization milestones of up to $73,333,333 are tied to cumulative U.S. net sales thresholds of $333.3 million, $1.0 billion, and $2.0 billion. PharmAla will also receive a 3% royalty on U.S. net sales following the third commercialization milestone. All milestone and royalty payments are contingent on specified events that may not be achieved.

PharmAla retains all rights to ALA-002 outside the United States. The company has also committed to supplying GMP-grade ALA-002 drug product to Jupiter under a separate supply agreement to be negotiated.

ALA-002 is a patented, non-racemic MDMA formulation that has received New Chemical Entity designation from the FDA. It remains an investigational product without regulatory approval, and its safety and efficacy have not been established.

Jupiter's existing pipeline includes JOTROL, a resveratrol formulation currently in a Phase IIa clinical trial for Parkinson's disease. According to the press release, the ALA-002 license adds a second clinical-stage program targeting neuropsychiatric disorders.