This week in psychedelic business news: Cybin acquires a Phase 1 DMT trial from Entheon; Numinus completed the acquisition of Novamind, MindMed's stock is removed from an index; and more!
On June 7th, 2022, Cybin Inc. (NYSE: CYBN, NEO: CYBN) announced that they have entered into an agreement with Entheon Biomedical Corp. (CSE: ENBI, OTCQB: ENTBF) to acquire their Phase 1 DMT safety trial. The study, conducted in the Netherlands with 50 healthy patients who smoke tobacco, is the largest Phase 1 DMT trial to date.
To gain the rights to the trial, Cybin will pay Entheon $1,000,000 (CAD), plus up to an additional $480,000 for consulting services regarding the trial.
Cybin believes that this purchase will help accelerate the development of CYB004, their next generation DMT with a longer duration of effect. Specifically, Cybin expects this to speed up the process by 9 months by gaining access to “essential safety and dosing optimization data.” This will replace Cybin’s previously planned pilot study for CYB004.
With the sale, Entheon’s business model seems to be shrinking, focusing on their HaluGen division —which produces a test which they say can pre screen a person to see if they are genetically predisposed to having a bad trip— and their IQ Program, which creates algorithms from treatment data. Under the terms of the sale, the two parties will “enter into a data license agreement,” which will allow Entheon’s IQ division to access certain data from the trial to support their IQ division.
The sale is expected to close within 30 days.
To purchase the HaluGen Genetic test kit and see if you are genetically predisposed to having a bad trip, click here.
As was previously reported, Numinus Wellness Inc. (TSX: NUMI, OTCQX: NUMIF) and Novamind Inc. (CSE: NM, OTCQB: NVMDF, FSE: HN2) have entered into an agreement for the former to acquire the latter.
The acquisition was dependent on the shareholders of both companies approving the deal, which has now happened. On June 8th, 98.5% of voting Novamind shareholders and 98.71% of voting Numinus shareholders approved the deal.
Assuming no unexpected regulatory hurdles, the transaction is expected to close on or around June 10th. The all stock transaction will see Novamind shareholders receive 0.84 shares of Numinus stock per share held. At current share prices, this will cost around $23,000,000 through dilution for Numinus.
Once the acquisition goes through, Numinus will operate 13 wellness clinics, four clinical research sites and a dedicated psychedelics research laboratory. The newly combined company will have an expected revenue of more than $10 million in the first year, though will still be running a large deficit.
One year ago, in June 2021, as MindMed’s (NASDAQ: MNMD, NEO: MMED) stock was going parabolic, it was included in many indexes that passively track American stocks. One such index was the FTSE Russell 3000® Index, which tracks the largest 3000 US companies by market cap.
As at the time MindMed’s market cap exceeded a billion dollars, it made the cut, and was added.
Unfortunately, however, this index rebalances once a year. And by June, 2022, MindMed’s stock had fallen a whopping 75%, putting its market cap around $375 million (USD). This means that MindMed no longer ranks among the largest 3000 American companies, and was removed from the Russell 3000 Index.
This is not a commentary on the business execution or future prospects of MindMed —as it wasn’t when they were originally added— but rather a simple matter of arithmetic. MindMed can not be included in the Russell 3000 if it is not one of the largest 3000 American companies.
On June 8th, Optimi Health Corp. (CSE: OPTI, OTCQX: OPTHF, FRA: 8BN) announced their exploratory psilocybin supply agreement with ATMA Journey Centers, a private company, has been finalized.
Under the agreement, Optimi —a company primarily focused on the research, production and sale of naturally derived psilocybin— will provide psilocybin to ATMA —a company primarily focussed on psychedelic therapist training, education, communication and business development.
This agreement will “supply psilocybin products to ATMA for future therapist initiatives and supply requirements,” and will give Optimi “an opportunity to refine approaches and improve efficiencies around the commercial distribution and clinical applications of psilocybin in anticipation of more robust demand.”
On June 7th, PharmaTher Holdings Ltd (OTCQB: PHRRF, CSE: PHRM) announced the results of a small, observational study which attempted to reduce the negative side effects of ketamine treatment in those with depression. They did this by pre-treating the 10 patients with a drug called betaine anhydrous, which is non-psychedelic, occurs naturally in the body, can be taken as a supplement, and is used to treat a condition called homocystinuria. PharmaTher calls the combination of these two drugs, along with their treatment regimen, KETABET™.
The main side effects of ketamine that PharmaTher was trying to reduce with a pre-treatment of betaine anhydrous, are depersonalization, derealization and amnesia.
According to PharmaTher, a “reduction in mean of 66% at 40 minutes following ketamine infusion initiation was seen for each of these measures in the study.” Furthermore the combination was well-tolerated and there were no serious adverse events.
The full results of this study will be released in the second half of 2022, and PharmaTher says that they will inform “the Company’s planned placebo-controlled phase 2 clinical study” of KETABET.
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