Enveric Biosciences Inc. (ENVB) shares jumped 73.82% in after-hours trading Tuesday, climbing to $10.29 after the Massachusetts-based biotech company announced significant patent news. The stock had closed regular trading at $5.92, down 2.47% on the day.

Patent Protection Expands Mental Health Pipeline

The catalyst? Enveric received a Notice of Allowance from the U.S. Patent and Trademark Office for a patent application covering its EVM301 Series molecules. These compounds are being developed as potential treatments for mental health disorders, and here's the interesting part: they're designed to be neuroplastogenic but non-hallucinogenic.

The patent, titled "N-heterocycle substituted tryptamine derivatives and methods of using," includes both composition and method-of-use claims. This could significantly expand Enveric's development pipeline by protecting additional molecules aimed at treating neuropsychiatric and addiction disorders.

The patent bolsters protection around the company's EVM301 Series portfolio, which includes its lead asset, EB-003. That compound is a non-hallucinogenic serotonin receptor agonist currently in development for depressive and anxiety disorders.

Management Weighs In

Joseph Tucker, Director and CEO of Enveric, emphasized the strategic importance of the patent: "We continue to work diligently to reinforce our patent estate around our lead asset, EB-003, and the EVM301 Series of compounds, which we see as vital to generating value for Enveric shareholders."

The Bigger Picture

While the after-hours surge is impressive, it's worth noting the context. Enveric has seen its stock plummet 91.57% so far this year. With a market capitalization of just $3.45 million, the company's annual trading range has been remarkably wide, spanning from $4.88 to $96.30.

That kind of volatility tells you everything you need to know about the risk profile here—this is a small-cap biotech with the potential for dramatic swings in either direction based on clinical and regulatory developments.