X T L Biopharmaceuticals Ltd (NASDAQ: XTLB) (FRA: HHB0) is planning to acquire Psyga Bio, a move that will give Psyga shareholders a 40 per cent stake in the enlarged company.
The deal, revealed on Apr. 29, will see that the Israeli biotech firm integrates Psyga as a wholly-owned subsidiary. Psyga will contribute an advanced pipeline that includes multiple Phase 2a clinical trials for psychedelic-derived therapies, a licensed GMP manufacturing facility ready to produce psilocybin and ibogaine compounds and a collection of more than 180 unique mushroom strains.
XTL shares rose by more than 90 per cent at the intraday peak on Wednesday following the announcement as investors responded to the strategic shift.
Prior to the agreement, XTL operated as a small-cap company focused primarily on an intellectual property portfolio centred on treatments for autoimmune conditions such as lupus and Sjögren’s syndrome.
This pending acquisition comes at a promising time for the psychedelic sector. President Trump’s executive order on Apr. 18 has instructed the FDA to speed up research, review processes and patient access to certain psychedelic therapies for serious mental health conditions.
Support from the American government builds on growing mainstream acceptance as well. High-profile voices like Joe Rogan have drawn public attention to ibogaine’s potential in treating addiction, while major outlets have explored the expanding body of evidence for psilocybin and other compounds in addressing depression, PTSD and substance use disorders.
Additional momentum comes from state-level programs in places like Oregon and Colorado that allow supervised psychedelic use. This activity has helped normalize therapeutic applications and attracted further clinical investment.
Read more: Optimi Health launches ibogaine initiative in response to Trump’s executive order
Technion professor anchors Psyga Bio
Professor Dedi Meiri plays a central role in Psyga Bio as its scientific founder and leader. He heads the Laboratory of Cancer Biology and Cannabinoid Research at the Technion — Israel Institute of Technology. There, his team investigates the therapeutic potential of psychedelic mushrooms alongside cannabis and other natural sources.
Meiri’s research focuses on detailed chemical profiling of compounds such as tryptamine-related molecules in psilocybin-producing fungi. This work explores their effects on serotonin-associated disorders, neurological conditions, inflammation and cancer. He also contributes to Israeli Ministry of Health committees that address regulatory aspects of psychedelic plants.
Psyga Bio emerged directly from this academic platform. The company built a proprietary library of over 180 unique mushroom strains; developed GMP-ready manufacturing for psilocybin, ibogaine and related ingredients; and advanced multiple Phase 2a clinical programs.
XTL Biopharmaceuticals to Acquire Psyga Bio, Establishing a Leading Psychedelic Biotechnology Platform with Advanced Clinical Pipeline, Licensed GMP Manufacturing and Proprietary Psilocybin Technologies.
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Outlook for psychedelic stocks is promising with inherent risks
The psychedelic sector enters 2026 with regulatory tailwinds, yet significant uncertainties remain. Clinical setbacks, lengthy approval timelines, manufacturing scale-up challenges and high cash burn rates continue to pressure many companies. Safety concerns, particularly around compounds like ibogaine, also require careful management alongside robust therapy protocols.
For XTL, the deal will create a broader platform with manufacturing assets and promising clinical catalysts. Success will depend on smooth integration and securing additional capital, including a planned US$1.5 million private placement.
Other psychedelic industry influences pulling attention from investors include COMPASS Pathways PLC (NASDAQ: CMPS) (FRA: 5Y6), which recently reported significant regulatory success with the FDA; Definium Therapeutics Inc (NASDAQ: DFTX) (FRA: MMQ0), formerly known as MindMed; and psychoactive nasal spray creator AtaiBeckley Inc (NASDAQ: ATAI) (FRA: B72).
Stocks across the sector rallied on recent positive news but have shown sharp volatility in the past.
Read more: Israeli scientists get tobacco to produce array of psychedelic compounds
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