PharmAla Biotech Holdings Inc (CSE: MDMA) will provide MDMA and psilocybin to Australian psychedelics clinics run by Incannex Healthcare Ltd (ASX: IHL) (NASDAQ: IXHL).
PharmAla announced the purchase order on Tuesday following Incannex announcing the establishment of the clinics last month.
PharmAla says Incannex will take possession of the order as soon as regulatory timelines permit. As of July, physicians in Australia will be able to prescribe psilocybin and MDMA for the treatment of certain mental health conditions.
The first clinic will be opened in Melbourne later this year at an unspecified date and several others will be opened throughout Australia afterward.
“We initially intended to use only ketamine-assisted psychotherapy, with the possibility of expanding into psilocybin-assisted psychotherapy for Generalised Anxiety Disorder subject to regulatory approval,” said Peter Widdows, Director and Psychedelic Clinics Business Lead of Incannex in March.
“When the Territorial Government of Australia (TGA) announced the down-scheduling of MDMA and psilocybin for two indications, we were in a perfect position to expand our plans to cover this wider set of related therapies for certain indications,” he added.
Incannex specializes in creating pharmaceutical products from medicinal cannabis and psychedelics to treat a wide range of conditions.
These include traumatic brain injury and concussions, lung inflammation, rheumatoid arthritis, inflammatory bowel disease, anxiety disorders, addiction disorders, pain, obstructive sleep apnea and others.
The company has developed an inhalable drug made from CBD and isoflurane (anesthetic) that has shown promise for treating brain injuries in rodent studies.
Incannex shares went up by 4.35 per cent Tuesday to AUD$0.12 on the Australian Securities Exchange.
Incannex to commercialise a psychedelics clinics business in collaborative partnership with leading #psychedelic experts with backgrounds in psychiatry, psychotherapy and neuoscience.
— Incannex Healthcare (@ASX_IHL) March 16, 2023
In February, PharmAla signed an agreement with Australia’s Emyria Limited (ASX: EMD) (ASX: EMD) to supply its LaNeo MDMA product to the company and submitted a trademark application for the drug in Australia.
PharmAla has also provided the University of Sydney with a supply of the LaNeo product for clinical studies.
PharmAla Biotech was the first publicly traded company to manufacture clinical-grade GMP MDMA.
“We’re thrilled to be able to supply patients through the network of clinics being set up by Incannex, and believe that this is the start of a wonderful relationship,” said Nick Kaydsh, CEO of PharmAla Biotech.
PharmAla’s shares went up by 5.13 per cent Tuesday to $0.41 on the Canadian Securities Exchange.