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Co. Pursuing Ketamine for Addiction Forms Partnership
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In landing this first licensing deal, the life sciences firm "shows good progress towards a potentially high-margin business," noted a Stifel report.

Awakn Life Sciences Corp. (AWKN:NEO; AWKNF:OTCQB) signed its first U.S. licensing agreement regarding its KARE, or ketamine in the reduction of alcoholic relapse, program, with Revitalist Lifestyle and Wellness Ltd., reported Stifel analyst Andrew Partheniou in an August 15, 2022 research note. Revitalist employs ketamine-assisted psychotherapy to treat patients with certain mental health conditions at its 10 U.S. clinics.

"The launch of the partnership is in line with Awakn's Q3/22 guidance and demonstrates good execution," added Partheniou.

The agreement between the two companies calls for Revitalist to pay an undisclosed annual fee plus revenue to Awakn in exchange for access to its KARE protocol and therapist training, Partheniou reported. This year, Revitalist aims to conduct 18,000 patient visits.

Partheniou highlighted that Awakn's licensing business has the potential to generate "attractive capex-light, high-margin software-as-a-service-like recurring revenues, which investors are currently getting for free at Awakn's current valuation." This revenue could be as much as $200–450 million per year at its peak, coming from the U.S. and the European Union, Stifel estimates.

Awakn's current share price is around CA$0.62, which is significantly lower than Stifel's target price of CA$8 per share. Thus, the potential return from this point for Awakn investors is noteworthy.

The Canadian life sciences firm beta launched its licensing offering about a month ago, after which it signed a number of related memoranda of understanding (MOUs) with various North American companies. The biotech's agreement with Revitalist is Awakn's first partnership following the mid-July launch.

Awakn intends to officially and fully roll out this line of business early next year, so with every licensing agreement signed in the interim, the company has a chance to further optimize all aspects of the model. Additional partnerships are expected, Partheniou indicated, just based on the number of MOUs in place.

Stifel has a Speculative Buy rating on Awakn.


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Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Awakn Life Sciences Corp. Click here for important disclosures about sponsor fees. 

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Awakn Life Sciences Corp., a company mentioned in this article.

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