Toronto-based Psyence Biomedical Ltd (NASDAQ: PBM) just invested US$500,000 into the private South African drug developer PsyLabs. The capital injection follows Psyence taking an 11 per cent stake in the natural psychedelics company in September.
PsyLabs is federally licensed to produce psilocybin, psilocin, mescaline, DMT and ibogaine for international research partners at its facility in Cape Town. It has been in operation for four years. The extraction lab at the production complex was set up in partnership with the American botanical extraction technology expert Eden Labs.
PsyLabs has sent its psilocybin fungi and extracts to Canada, the United Kingdom, Portugal and Slovenia. The privately-held African operator currently supplies Psyence with its EU-GMP-certified magic mushrooms.
In conjunction with the funding announcement, Psyence revealed that it has secured first rights to a steady supply of ibogaine synthesized by PsyLabs. Whether Psyence will capitalize on the offer is uncertain. This naturally-derived drug, extracted from a psychoactive Central African shrub, has garnered attention for its ability to treat substance use disorders and alcoholism in particular.
“By combining our manufacturing expertise with Psyence BioMed’s clinical development capabilities, we are creating a powerful platform to explore the full potential of ibogaine and psilocybin in addressing addiction and mental health disorders,” PsyLabs chief executive, Tony Budden, said in a release from Psyence.
Alongside companies like Compass Pathways PLC (NASDAQ: CMPS), ATAI Life Sciences NV (NASDAQ: ATAI) (ETR: 9VC), Mind Medicine (MindMed) Inc (NASDAQ: MNMD) and GH Research PLC (NASDAQ: GHRS) (FRA: 1KA), Psyence is one of the few psychedelic drug developers listed on the Nasdaq Exchange.
As pointed out by PsyLabs, the market for psychedelic drugs is expected to expand with a robust compound annual growth rate of 13 per cent and reach a valuation of US$7.3 billion by 2031. That being said, a lack of progress with the decriminalization and regulation of psychoactive therapeutics in many countries is an ongoing concern.
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