Polyrizon (PLRZ) said Friday that it has signed a non-binding letter of intent with an unidentified company specializing in psychedelic-based therapies to develop a novel intranasal formulation using Polyrizon's proprietary platform to improve the delivery of psychedelic treatments.

Polyrizon said it will develop the formulation using its mucoadhesive technology, while the psychedelic-focused company will fund the research and development, including feasibility studies.

After establishing proof of concept, both parties intend to finalize a definitive agreement on intellectual property, royalties, commercialization rights, and financial terms, Polyrizon said.

Shares of the company were down nearly 20% in recent premarket activity on Friday.