TDR’s Top 5 Psychedelic Developments For The Week Of November 20

Welcome to TDR’s review of the Top 5 Psychedelic Developments for the week of November 20. Aside from presenting a synopsis of events, we provide market commentary to summarize the week that was for publicly-listed companies.

5. Californians Have Until Monday To Comment On Revised Psychedelics Ballot Proposal, With Final Update Expected December 1

California residents have until Monday to comment on a proposed ballot measure that would create a statewide right to obtain and use psychedelics for medical, therapeutic and spiritual purposes with the recommendation of a doctor. If enacted, adults would be allowed to possess and use the substances in their home as well as cultivate entheogenic plants and fungi on private property.

Organizers submitted the Psychedelic Wellness and Healing Initiative of 2024 to state officials late last month and have until November 27 to solicit public comment to the state attorney general, said Dave Hodges, a lead campaign organizer and the founder of the Church of Ambrosia, in Oakland. “Then we have five days after that to do our final update… That will be December 1.”

4. Algernon Pharmaceuticals Announces LOI For The Acquisition Of Its Chronic Cough Research Program By U.S. Based Seyltx For USD $2M And A 20% Equity Position

Algernon Pharmaceuticals has signed a Letter of Intent with Seyltx Inc., a privately owned U.S. based drug development company, to acquire Algernon’s NP-120 (Ifenprodil) research program for USD $2M cash and a 20% common share equity position in Seyltx.

The transaction is subject to certain conditions including, inter alia, Seyltx financing and the negotiation and execution of a definitive agreement, which is expected to occur within the next 90 days

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Widely Held Psychedelic Stocks Weekly Performance

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3. Psychedelics Rise In Holiday-Shortened Week

The psychedelic sector rose this past week, as reflected by the Advisorshares Psychedelics ETF (PSIL) ↑6.06%. The performance bested peer biopharma indices such as the Nasdaq Junior Biotechnology Index ↑1.06% and Nasdaq Biotechnology Ishares ETF↑1.06%. The broad stock market indices NASDAQ 100 ↑0.73% and S&P 500 ↑0.90% also rose on the coattails of recent momentum and in the absence of key economic news.

Here’s how the Health Care (Biotechnology) sector performed:

In the news…

Alaska: Health professionals discussed the potential of psychedelic therapy in Alaska Nov. 2. The panel was hosted by the Alaska Entheogenic Awareness Council. Entheogens are plant-based psychedelic substances, though the experts also discussed synthetic psychedelics.

Anxiolytic effects of ketamine…

Canada: The lawyer that represents some staff at FunGuyz, a magic mushroom dispensary with locations across Ontario including Cambridge, says they’re planning to make a big move next week in hopes of getting closer to legalization.

Clearmind Medicine will conduct a reverse share split of its issued and outstanding ordinary shares, no par value, at a ratio of 1-for-30. The reverse split is being effected as part of the Company’s plan to regain compliance with the Nasdaq Minimum Bid Price Rule and will be effective commencing November 28, 2023.

Enveric Biosciences announced the presentation of two posters at the Canadian Chemical Engineering Conference (CSChE 2023) which was held October 29^th to November 1, 2023.

Filament Health has signed a non-binding term sheet providing for up to US$14.4 million in funding through a convertible note with an affiliate of Helena Partners Inc., a Cayman-Islands based advisor and investor.

Johns Hopkins experts discuss the promise and pitfalls in studying the healing power of psychedelics.

Kelowna business that sells “alternative medicine therapies,” including psilocybin, has confirmed it was raided by police on Nov. 24.

Massachusetts may have violated signature-gathering regulations and potentially invalidated thousands of signatures in their quest to legalize psychedelics in the state, according to nonprofit news organization WBUR.

MIRA Pharmaceuticals announced a partnership with MIRALOGX, LLC, an intellectual property holding company established by MIRA’s founder. Under an exclusive licensing agreement, MIRA will have the exclusive right in the U.S., Canada, and Mexico to develop and commercialize Ketamir-2, a novel oral ketamine analog designed to revolutionize the landscape of depressive disorder treatments.

Ninth Circuit Court of Appeals in  Aggarwal v. U.S. DEA directed the U.S. Drug Enforcement Agency (DEA) to reconsider its decision not to transfer psilocybin from Schedule I to Schedule II. 

Numinus Wellness will release its financial results for the quarter and year ended August 31, 2023, after market close on Wednesday, November 29, 2023.

Portlanders will soon be able to experience professionally facilitated psilocybin, or “magic mushrooms”, in a new facility on the Central Eastside.

Psyence Group announced that Mr. Marvin Singer has resigned from his position as a Non-Executive Director for personal reasons. Mr. Singer has been an integral part of the board of the company since listing in January 2021, providing valuable insights and guidance during his tenure.

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Tryp Therapeutics has closed its previously announced private placement of unsecured convertible notes for aggregate gross proceeds of AUD$3,215,000 which represents an oversubscription of AUD$215,000 above its previously announced minimum placement of AUD$3,000,000.

Universal Ibogaine has made an application to the Alberta Securities Commission (as Principal Regulator) and the British Columbia Securities Commission, to approve a temporary management case trade order under National Policy 12-203

Water Tower Senior Research Analyst Robert Sassoon predicts a continued sector shakeout in the psychedelics market. Sassoon believes there will be an ongoing consolidation in the industry and that there will be a significant reduction in the number of publicly traded psychedelic companies.

2. New Study Pinpoints The Most Common Long-Term Challenges After Psychedelic Use

A recent study explored the enduring challenges individuals face after using psychedelic substances like psilocybin and LSD, finding that emotional difficulties, such as anxiety and fear, were the most common, along with self-perception and cognitive issues. The study, published in PLOS One, also identified factors that could contribute to these difficulties.

The motivation behind this study lies in the growing interest and use of psychedelic substances like psilocybin and LSD for various purposes, including therapy and personal growth. These substances have shown potential in treating conditions like depression, anxiety, and PTSD, and they are being considered for legal medical use in some countries. However, along with the potential benefits, there have been reports of individuals experiencing enduring difficulties or challenges after using psychedelics.

1. Cybin To Host CYB003 Topline Depression Study Review And R&D Briefing On November 30, 2023, In New York City

Cybin Inc. will discuss its topline Phase 2 safety and efficacy data for CYB003, its deuterated psilocybin analog being developed for the treatment of major depressive disorder, as part of an R&D investor briefing featuring a key opinion leader panel titled “Understanding the Current Treatment Landscape in Depression and Therapeutic Potential of Psychedelics in Mental Health” on Thursday, November 30, 2023 in New York City, at 10:00 a.m. ET.

Program Schedule:

A live webcast of the event will be available on the Company’s investor relations website on the Events & Presentations page.