Companies developing treatments from LSD, ketamine and the active ingredient in magic mushrooms are finding interest from investors, including Kevin O’Leary
The first companies developing medical treatments from psychedelic drugs like LSD, ketamine and the active ingredient in magic mushrooms are gearing up to list on Canadian stock exchanges.
Mind Medicine Inc., which is undertaking clinical trials of psychedelic-based drugs, intends to list on Toronto’s NEO Exchange by the first week of March, said JR Rahn, the company’s co-founder and director. A NEO spokesman confirmed the listing, which is pending final approvals.
The company plans to list via a reverse takeover under the ticker MMED. It’s not yet generating revenue and is targeting a valuation of approximately US$50 million, Rahn said. Mind Medicine counts former Canopy Growth Corp. co-chief executive officer Bruce Linton as a director and Shark Tank star Kevin O’Leary as an investor.
“Our ambition is to be one of the first publicly listed neuro-pharmaceutical companies developing psychedelic medicines,” Rahn said in a phone interview.
For those who are still getting used to legal marijuana, the idea of publicly traded companies working with psychedelic drugs like MDMA and psilocybin, which is derived from magic mushrooms, may sound a bit out there.
Yet a growing number of companies are conducting clinical trials of psychedelic treatments for everything from depression to post-traumatic stress disorder, and some have recently received the blessing of the U.S. Food and Drug Administration. This has created a legal way for these companies to conduct research on otherwise illegal drugs, opening the door to public listings.
In late 2018, the FDA gave “breakthrough therapy” status to a psilocybin treatment developed by London-based Compass Pathways Ltd. for clinical depression, expediting the development process.
Meanwhile, Toronto-based Mind Medicine is preparing a Phase 2 clinical trial into the use of a psychedelic called ibogaine to treat opioid addiction, which will be conducted in New York and governed by the FDA.
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