Jupiter Neurosciences signs $100M term sheet for U.S. rights to MDMA therapy ALA-002

By AI, Created 8:45 PM UTC, May 20, 2026, /AGP/ – Jupiter Neurosciences entered a term sheet to secure exclusive U.S. licensing rights to PharmAla’s ALA-002, a patented MDMA formulation, in a deal that could add a new psychedelic-therapy asset to its CNS pipeline. The agreement comes as federal policy shifts and clinical trials could accelerate access and commercialization in the U.S.

Why it matters: - Jupiter Neurosciences is trying to position itself in the emerging U.S. psychedelic therapeutics market with a differentiated MDMA asset. - ALA-002 is designed to offer improved cardiovascular safety and lower abuse liability than racemic MDMA while preserving the therapy’s pro-social and therapeutic effects. - The transaction could expand Jupiter’s central nervous system pipeline beyond its lead resveratrol program and into mental-health applications.

What happened: - Jupiter Neurosciences entered a term sheet to acquire exclusive, perpetual U.S. licensing rights to ALA-002 from PharmAla Biotech Holdings. - The proposed deal includes a $3.33 million upfront package at closing: $1.50 million in cash and $1.83 million in Jupiter common stock. - The stock portion would carry a 120-day lock-up. - Jupiter also agreed to place $600,000 in escrow when the term sheet was signed. - The escrow amount would be credited against the upfront cash payment at closing. - If a definitive agreement is not signed within 90 days, PharmAla would receive the escrowed cash as a reverse termination fee, subject to fault-based carve-outs and exceptions. - The parties said closing of the definitive agreement is targeted within 90 days of the term sheet. - D. Boral Capital is serving as Jupiter’s sole financial advisor on the transaction.

The details: - ALA-002 is a patented, non-racemic MDMA formulation recognized by the U.S. Food and Drug Administration as a Novel Chemical Entity. - PharmAla says the drug was engineered to improve cardiovascular safety and reduce abuse liability compared with racemic MDMA. - PharmAla’s MDMA supply is being used in U.S. government-sponsored VA and DHA clinical trials. - Jupiter said the deal would strengthen its CNS pipeline and add a next-generation psychedelic novel chemical entity. - Jupiter’s lead program remains JOTROL, a proprietary enhanced-bioavailability resveratrol formulation now in a Phase IIa trial for Parkinson’s disease. - Jupiter also sells Nugevia, a consumer longevity supplement. - PharmAla says it is the only company currently provisioning clinical-grade MDMA for patient treatments outside clinical trials. - PharmAla also has a commercial presence through its Cortexa joint venture in Australia, where MDMA is approved for prescription by authorized psychiatrists for PTSD. - PharmAla’s LaNeo MDMA is supplied into multiple U.S. VA and DHA-sponsored clinical trials. - Jupiter provided a company website for more information: the company’s announcement. - PharmAla provided a company website for more information: PharmAla’s website.

Between the lines: - The announcement ties the transaction to President Donald J. Trump’s April 18, 2026 executive order on serious mental illness and psychedelic medicine. - The executive order directs FDA and DEA action on access, right-to-try pathways, and agency coordination around investigational psychedelic therapies. - Jupiter framed the deal as a way to gain exposure to what it sees as a regulated psychedelic market that could scale as reimbursement, clinic infrastructure and federal programs develop. - The company’s comments suggest it sees ALA-002 as a strategic fit for a future mental-health franchise, not just a one-off licensing deal. - PharmAla described the asset as a differentiated MDMA-based therapeutic candidate for patients who need better treatment options.

What’s next: - The transaction still needs due diligence, definitive agreements, and required corporate and regulatory approvals. - The deal also remains subject to customary closing conditions. - Jupiter said any milestone payments and single-digit royalties would come later as the product is developed, approved and commercialized. - The companies have 90 days from the term sheet to complete the definitive agreement.

The bottom line: - Jupiter is betting that exclusive U.S. rights to ALA-002 can give it a foothold in MDMA-assisted therapy just as federal policy and clinical development appear to be moving in the same direction.