Psychedelic Business Spotlight – June 17

ARK Invest’s Deep Dive on Psychedelic Stocks is “Coming”

Leading this week’s psychedelic business news, ARK Invest progresses its deep dive into psychedelic stocks. You will likely recall that earlier this year it was announced that Cathie Woods’ ARK Invest (NYSE: ARKK) was conducting a “deep dive” into psychedelic stocks. This came after their ARK Genomic Revolution ETF (NYSE: ARKG) made several initial investments into Compass Pathways (Nasdaq: CMPS). Unfortunately, since then we have heard radio silence on the ARK psychedelic stocks research.

That changed on June 12th, when, in response to a Twitter inquiry asking when the deep dive was coming, ARK research associate Pierce Jamieson responded, “It’s coming, be patient.”

This will likely excite retail investors who are fans of both psychedelic stocks and ARK Invest. Despite ARKK falling nearly 70% in the last year, there are still armies of retail investors who have bought into Cathie Woods’ vision of investing in the technologies of the future. While we don’t know when this deep dive is coming, it is good news to hear the project is still being worked on by ARK.

Numinus Completes Acquisition of Novamind and Announces Executive Appointments

It’s official! Numinus Wellness (TSX: NUMI, OTCQX: NUMIF) has completed the acquisition of Novamind. Now, Numinus has 13 wellness clinics, four clinical research facilities, and a dedicated psychedelics research lab.

The combined company —continuing to operate under the Numinus banner— will have an annual revenue of C$11.9 million, calculated from the trailing four quarters. Presumably, this is a starting point and revenue will continue to rise going forward. Of course, Numinus will still be running a large deficit.

Joining the leadership team from Novamind, Dr. Reid Robison (MD) will become the Chief Clinical Officer of Numinus, and Dr. Paul Thielking (MD) will become the Chief Science Officer.

Mindset Pharma Receives Notices of Allowance for Patent Application Covering Psilocin Derivatives for the Treatment of Central Nervous System Disorders

Mindset Pharma (CSE: MSET, FSE: 9DF, OTCQB: MSSTF) has received a “Notice of Allowance” from the United States Patent and Trademark Office for their Family #1 of next-generation psychedelics.

Family #1 consists of second-generation psilocybin molecules, which Mindset says have the potential to be safer, stronger, and more cost-effective than the original. The lead molecule in Family #1, MSP-1014, is expected to enter a Phase 1 clinical trial this year, with the eventual goal of treating depression.

A “Notice of Allowance” is granted when the patent office believes that a patent application qualifies for a patent. However, there is still some paperwork required before it is officially granted.

Cybin Receives Institutional Review Board Approval for its Phase 1/2a Clinical Trial Evaluating CYB003 for the Treatment of Major Depressive Disorder

This week, Cybin (NEO: CYBN, NYSE: CYBN) announced that they had “received Institutional Review Board (“IRB”) approval to begin the first-in-human Phase 1/2a clinical trial evaluating CYB003.” CYB003 is Cybin’s proprietary, next-generation psilocybin. Among other improvements over the original that Cybin claims, CYB003 is said to have a shorter duration of effect and be safer.

Commenting on the news, Doug Drysdale, Chief Executive Officer of Cybin, said “IRB approval of our trial protocol is a significant regulatory milestone for CYB003 as it leads us one step closer to potentially providing this important treatment option to people in need. The team has worked tirelessly to move this program into the clinic, and we look forward to initiating the study in mid-2022 and further supporting our mission to develop psychedelics into therapeutics.”

Wellbeing Digital Sciences Announces Q3 Financial Results

For the quarter that ended on April 30th, 2022, Wellbeing Digital Sciences (NEO: MEDI, OTC: KONEF, FRA: SQ2) had a net loss of C$5.4 million. This comes out to a loss of C$0.04 per share.
Wellbeing had revenue of C$1.6 million in the quarter, and they have C$298,125 in cash and cash equivalents. In total, the company has C$17.7 million in total assets. 

Given the net loss for the quarter, compared to the amount of cash Wellbeing has on hand, it appears the company is in a tough spot. Unfortunately, as their market cap is only C$4.13 million, raising money will also be difficult. If Wellbeing wants to continue spending at the same rate, they will have to get creative in how they raise cash.

Filament Health Announces Patient Dosing Through Health Canada Special Access Program

Filament Health (OTCQB: FLHLF, NEO: FH, FSE: 7QS) has joined the growing list of companies that have treated at least one patient in Canada through the Special Access Program (SAP).

The SAP program is meant to provide patients with access to a medicine that is currently not available in Canada, when the patient has already tried multiple other treatments without success. Already, companies such as Numinus and ATMA have been given approval to use psilocybin on patients with severe depression through the SAP.

Interestingly, Filament says that their SAP patient has been dosed with “one of Filament’s drug candidates.” This is almost certainly PEX010, their furthest progressed drug candidate. PEX010 is a naturally derived version of psilocybin.

Braxia Scientific Expands Clinic Footprint in Canada, Delivering Ketamine and Psilocybin Treatments for Depression and Related Mental Health Disorders

To round out this week’s psychedelic business news, Braxia Scientific (CSE: BRAX, OTC: BRAXF, FWB: 4960) announced that the Company has opened its fifth psychedelic medicines clinic in Canada. The clinic, in Kitchener-Waterloo, will primarily treat depression patients with ketamine-assisted therapy. They may also be able to treat a limited number of patients with psilocybin-therapy, either through one of their clinical trials, or perhaps through the SAP. Eventually, when MDMA and psilocybin therapies are legalized, the clinics will likely also offer these treatments.

On top of the new clinic, Braxia will also be adding capacity at its new flagship center in Toronto and its clinic in Ottawa.

“Today’s announcement is the first of what we intend to be a series of growth developments and acquisitions to our clinical network,” said Braxia CEO Dr. Roger McIntyre. “Further plans are in place for the expansion of Braxia Health clinics in Toronto and Ottawa, Ont., to better serve the growing unmet need in our Canadian communities.”

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