Psychedelics could soon disrupt the $2.5 trillion mental health market. All as clinical studies begin to uncover its benefits in treating obsessive-compulsive disorder, PTSD, opioid addiction, alcoholism, eating disorders, depression and anxiety. We’re also just beginning to see broader support in the U.S. In fact, over the last few months, Denver, Oakland, and Santa Cruz have legalized the use of psilocybin. In addition, according to Data Bridge Market Research, the North American psychedelics market could grow at a CAGR of 15.8% to $6.8 billion over the next seven years.
The research firm added, “The increasing acceptance of psychedelic drugs for the treatment of depression throughout the United States is one of the major reasons for the rising demand for psychedelic drugs. The Department of Neuroscience, Faculty of Medicine, Norwegian Trondheim, University of Norway, University of Science and Technology have reported that more than 3 million people are using psychedelic drugs in the United States. Due to these factors, the market is expected to grow at the significant growth rate in the forecast period of 2020 to 2027.” As the psychedelics story gains momentum, some of the top companies to watch include CYBIN Inc. (NEO:CYBN), Mind Medicine Inc. (NEO:MMED)(OTC:MMEDF), COMPASS Pathways (NASDAQ:CMPS), Numinus Wellness Inc. (TSXV:NUMI), and HAVN Life Sciences (CSE:HAVN).
CYBIN Inc. (NEO:CYBN) BREAKING NEWS: CYBIN Inc., a life sciences company focused on psychedelic pharmaceutical therapies, is pleased to announce that it has closed on its acquisition of 100% of the shares in Adelia Therapeutics Inc. for up to CDN$20,161,575 (approximately USD$15.75 million).
Transaction Highlights
- Newly acquired novel psychedelic molecules diversify Cybin’s development portfolio, providing access to multiple future indications. Selective modification, through deuteration of psychedelic parent molecules, allows control of the duration of action of these new chemical entities, enabling the design of both short and long-acting treatments.
- Adelia brings a range of technologies related to novel therapeutics, delivery methods, and therapeutic regimens, as well as six patent applications.
- Adelia contributes an expanding library of psychedelic derivative drug development candidates. The first lead compounds are expected to enter clinical studies in 2021, subject to receipt of approvals.
- Cybin gains access to new patent-protected active pharmaceutical ingredients obtained by way of selective modification of the parent molecules.
- Cybin gains a proprietary drug delivery platform developed by Adelia to administer psychedelic therapies and bypass liver metabolism.
- Adelia’s leadership team of accomplished drug developers and scientists brings deep clinical and commercialization experience, including past commercial success in psychedelics through the development of proprietary ketamine analogs. The team has a strong understanding of the underlying science, as well as prestigious academic affiliations.
- Cybin gains an operating development facility in the epicenter of the Boston biotechnology center, which broadens its presence in the United States.
Adelia is an innovative biopharmaceutical company committed to addressing unmet mental health needs through developing proprietary psychedelic therapeutics with improved dosing efficacy and therapeutic indices. Adelia’s leadership team brings a wealth of clinical development experience. Adelia’s team have previously worked with pharmaceutical companies including Johnson & Johnson, GlaxoSmithKline, Sanofi, Roche, Pfizer and Eli Lilly, and maintain academic research affiliations, including with the MIT, Harvard, Stanford, Yale, and Northeastern University.
“We are thrilled to join forces with Adelia. We see this acquisition as potentially advancing Cybin’s ability to innovate our psychedelic drug development program and diversify beyond major depressive disorder. Adelia’s focuses on novel delivery methods and innovative therapies may contribute to our goal of therapies with faster onset of action, smoother pharmacokinetic profiles, shorter treatment periods, and reduced side effects. Adelia’s expertise across multiple molecules and multiple indications, could potentially give Cybin the ability to address gaps across a larger domain,” stated Doug Drysdale, Chief Executive Officer of Cybin.
“Cybin is committed to expansion through strategic M&A opportunities. Today, we deliver on that commitment, and we will continue to pursue opportunities to drive growth,” concluded Drysdale.
Adelia’s founders, Alex Nivorozhkin, PhD (Chief Executive Officer) and Brett J. Greene (President, Chief Strategy Officer) have decades of experience in psychedelics and drug development and are affiliated with Northeastern University’s world-renowned Center for Drug Discovery in Boston. Dr. Michael Palfreyman, Chief Operating Officer, is an accomplished pharmaceutical industry veteran responsible for more than 30 successful clinical programs.
Collectively, Adelia’s talented team has deep expertise in drug discovery, development, clinical evaluation and commercialization; a wealth of highly cited peer-reviewed publications; 35 successful exits; and prestigious academic affiliations.
Management of Cybin intends to work with the Adelia team on a three pillar development strategy, each of which must receive all necessary approvals: (a) a novel drug discovery platform and research on the potential efficacy of psychedelic molecules to address unmet mental health needs; (b) efficient drug delivery to enhance dosing control; and (c) a potential novel treatment regimen. Adelia’s team has also laid out a three- year development plan (2021 – 2023). The first year’s preclinical to clinical stage will focus on applying the proprietary delivery and device platform. The second year’s clinical stage will focus on developing new chemical entities to scale up production. The third year’s clinical trials stage will advance proprietary technologies and drug delivery devices.
Alex Nivorozhkin, PhD, will become Chief Scientific Officer. Michael G. Palfreyman, PhD, DSc, will become Chief Research and Development Officer. Brett Greene will become Chief Innovation Officer.
“Cybin brings complementary resources to the table, and together we can advance our shared goal of bringing psychedelic therapies to a broad spectrum of indications. This transaction positions us well for growth in the public market and gives us access to the capital needed to advance these projects from the bench, through the clinic, and ultimately to the patients who desperately need them. We have a great deal of respect for Doug and his team and look forward to the opportunity to transform the psychedelic therapeutics industry together,” stated Alex Nivorozhkin, PhD, Co-Founder and Chief Executive Officer of Adelia.
Other related developments from around the markets include:
Mind Medicine Inc. (NEO:MMED)(OTC:MMEDF) is pleased to announce that it has closed its previously announced bought deal short form prospectus offering, including the exercise in full of the underwriter’s over-allotment option. In connection with the Offering, the Company issued 18,170,000 units of the Company at a price per Unit of CAD $1.90 for gross proceeds of CAD $34,523,000. The Offering was conducted by Canaccord Genuity Corp., as lead underwriter, and Eight Capital.
COMPASS Pathways (NASDAQ:CMPS), a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health reported its financial results for the third quarter of 2020 and gave an update on recent progress across its business. George Goldsmith, Chairman, CEO and Co-founder, COMPASS Pathways, said, “This has been a significant quarter, with an IPO that gives us the funds needed to advance our mission and transform mental health care. Recent hires for the company build further important expertise within our strong leadership team, including in data science and digital health, which will be core to the future of mental health care. We remain fully focused on execution of our phase IIb trial investigating our COMP360 psilocybin therapy for treatment-resistant depression and, with scientific partners in our recently established Drug Discovery Center, are also evaluating the potential of early stage compounds to address mental health challenges.”
Numinus Wellness Inc. (TSXV:NUMI), a company creating an ecosystem of health solutions centered around developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies, commends Health Canada's leadership for its intention to revise the Special Access Programme (SAP) to permit access to MDMA and psilocybin-assisted psychotherapy. The intended SAP revision, announced today, will positively affect the lives of the many Canadians experiencing mental health conditions who have not responded to existing therapies.
HAVN Life Sciences (CSE:HAVN), a biotechnology company focused on unlocking human potential using evidence-informed research and developing standardized psychoactive compounds derived from plants and fungi, announced a partnership with the Westwood Institute, a veteran’s mental health-focused non-profit founded by Dr. Marvin Westwood. The Institute’s mission is to expand on Dr. Westwood’s work with veterans and empower clinicians around the world with evidence-based interventions and clinical training. Group counselling, trauma treatment and emerging therapies are key pillars of the Institute’s approach.
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