This week in psychedelic business news: Filament Health scores 2nd psilocybin patent; a new psychedelics company emerges as one crumbles; Compass Pathways partners on psychedelic research center in the UK.
Filament Health Receives Second Patent for Natural Psilocybin
This week in psychedelic business news, Filament Health (OTCQB:FLHLF) (NEO:FH) (FSE:7QS) has been issued a second patent by the Canadian Intellectual Property Office for the extraction and standardization of natural psilocybin and associated psychedelic compounds.
The patent covers innovative technology for transforming variable psychedelic raw materials into pharmaceutical-grade, standardized drug candidates, with a 100% success rate. “According to the Yale Journal of Law and Technology, the success rate for pending applications to issued patents in the pharmaceutical industry is 42.8%,” says Taran Grey, Filament's Director of Intellectual Property.
Compass Pathways (Nasdaq: CMPS) has formed a long-term partnership with the Institute of Psychiatry, Psychology & Neuroscience (IoPPN) at King’s College London to launch The Centre for Mental Health Research and Innovation in the United Kingdom.
“The Centre will accelerate the integration of innovative psychedelic therapies into the NHS following regulatory approval and reimbursement,” says Compass CEO George Goldsmith. “It is a key part of our strategy to work with health systems to develop innovative evidence-based therapies, and ensure they reach those who might benefit from them as quickly as possible.”
The Centre will initially be located at Maudsley Hospital, London, while state-of-the-art facilities are built within a 200 acre woodland at Bethlem Royal Hospital, London. The space will be dedicated for late-stage clinical trials and provide patients access to the psychedelic medicine company's COMP360 psilocybin therapy.
Real Brands (OTCQB: RLBD) is entering the psychedelic business after already establishing itself as a multi-brand owner, formulator, extractor and manufacturer of branded hemp-derived CBD products.
“We are pursuing research and development of medical psychedelics because current traditional mental health care treatments are often ineffective and have severe negative side effects,” says CEO Thom Kidrin. “Revolutionary breakthroughs in medicine, pharmacology, and behavioral neuroscience have exposed the vast potential of psychedelics and empathogenic drugs as highly effective therapies.”
The company has partnered with consulting firm Marcu & Arora to apply for U.S. Drug Enforcement Agency licensure for psychedelics, including defining the protocols for application and the focus of the formulation research and development. Additionally, Real Brands will apply to the DEA for authorization to process and handle psychedelic substances, and it has applied to the state of Rhode Island to be able to prescribe, dispense, store and ship controlled substances.
As our resident Psychedelic Investor James Hallifax points out in his thesis for investing in psychedelic stocks, not every company in the psychedelic business will be a winner. The pack was always expected to thin as investment funds dry up, and it appears Core One Labs (CSE: COOL) (OTC: CLABF) may be in trouble, as well, after Mind Cure Health halted all psychedelic business activity. Last Saturday the company announced that they are “working to investigate investment and potential takeover opportunities by strategic psychedelics or pharmaceutical companies.”
Hallifax wrote in his analysis earlier this week that means Core One has run out of money and is looking for a financial savior. “As of the end of September, the company had $587,000 CAD in the bank, and they were spending more than $5 million per quarter. With a market cap of around $32 million, Core One would have to dilute their stock by more than 15% each quarter to keep spending at the same levels. This, obviously, is an unsustainable proposition,” Hallifax wrote.