Halucenex forms important partnership as psychedelics space heats

By Jonathan Jackson. Published at May 6, 2021, in ASX Biotechs

Creso Pharma Limited (ASX:CPH, FRA:1X8) has today announced that its acquisition target Halucenex Life Sciences Inc. has signed an agreement with Nucro-Technics, a Pharmaceutical Contract Research Organization (CRO) that is a partner to pharmaceutical, biologic, and medical device companies located all over the world.

Nucro-Technics has been in operation for nearly 50 years, employs over 170 scientific support personnel and has a 60,000 sq. ft. facility in Toronto.

Halucenex is focused on progressing clinical trials to research the efficacy of psilocybin to treat and alleviate Treatment Resistant Depression in individuals suffering from PTSD and other mental illnesses.

The company is about to begin a Phase II clinical trial that will test the efficacy of psilocybin on the treatment of PTSD.

Halucenex and Nucro-Technics will work together to test the stability and shelf life of psilocybin liquid formulations for use in Halucenex’s phase II clinical trial.

Through this partnership, Halucenex will have access to a GMP certified lab to formulate and test the bioavailability of its synthetic psilocybin compound, the ability to handle control substances for formulations of current delivery solutions and potential future methods that may have a faster onset.

Halucuenex will also be able develop and validate methods for potency, component identification and microbiology for botanical psilocybe mushrooms grown in the future at Halucenex.

The cost to Halucenex will be a fixed fee of CA$38,202.

“Nucro-Technics have a defined area of expertise that will be instrumental in the preparations for our upcoming phase II clinical trial,” Halucenex Founder and CEO Mr Bill Fleming said.

“Further, the group complements our existing suite of industry leading partners that will assist Halucenex in becoming a leading researcher and provider of Psychedelic-Assisted Psychotherapy.

“Management are continuing to work diligently to progress trial initiatives and we expect to achieve a number of regulatory milestones in the near term. The receipt of a Dealer’s License from Health Canada will provide us with another considerable competitive advantage in what is becoming a large and lucrative vertical.”

Trials to commence on receipt of Dealer’s licence

Halucenex is expecting to receive its Controlled Drugs and Substances Dealer’s License from Health Canada, which upon receipt will enable it to apply for Clinical Trial Authorisation and commence the Phase II clinical trial.

The proposed phase II clinical trial is designed to be a single-arm, open-lab trial that will ultimately determine the feasibility of future trials of psilocybin in this indication.

The trial will involve 18 to 20 individuals (over 18 years old) that suffer from Treatment Resistant PTSD.

Importantly, should trials be successful, Halucenex is affiliated with Veterans Affairs Canada via strategic adviser David Fraser, which will expedite revenue generation through sales into a market with significant demand and government backing.

The trial is expected to commence in Q3 2021, subject to receipt of all necessary regulatory approvals.

The market

The Psychedelic Drugs Market size is projected to reach US$10.75BN by 2027, from US$4.75BN in 2020 growing at a CAGR of 12.36% during 2021-2027.

One of the key players is MindMed (NASDAQ: MNMD), a psychedelic medicine biotech company that discovers, develops and deploys psychedelic inspired medicines and therapies to address addiction and mental illness.

It listed on the NASDAQ last Tuesday and has been public on Canada’s NEO stock exchange since March 2020. The company is capped at circa a billion dollars and in January this year began the first ever clinical trial measuring and evaluating MDMA and LSD used in combination in the human body.

The study is anticipated to take around one year to complete.

MindMed is also currently preparing a pre-IND briefing package for its Phase 2a Proof of Concept study which it plans to submit to the FDA in the second half of 2021. In addition, the Company is also evaluating a second indication in a common, often debilitating, chronic pain syndrome.

"Evidence dating back to the 1950s suggests that LSD and other psychedelics may have analgesic effects, but this treatment area remains largely untapped by companies studying psychedelics, with the majority of research focusing solely on psychiatric indications" said MindMed Chief Development Officer, Rob Barrow.

As Finfeed has previously reported, MindMed Board member Bruce Linton, who founded Canopy Growth Corp - which went from a penny stock to a $15BN market cap at its peak - recently became an advisor to CPH. Linton holds shares in CPH.

Former CEO and founder of CPH Dr Miri Wernli remains a significant shareholder of CPH and is the Executive President and Director of MindMed.

Compass Pathways is another in clinical trial phase.

Compass Pathways (NASDAQ: CMPS) is seeking to investigate the use of psilocybin therapy for treatment-resistant depression. The Company is currently conducting a phase IIb clinical trial of psilocybin therapy for TRD in 22 sites across Europe and North America. On September 18, 2020 Compass came public at $17.00 per share and has traded as high as $61.69, after an $80 million private financing round. The private round included PayPal co-founder, Peter Thiel.

MindMed and Compass are just two examples of the movement in the psychedelics space.

CPH’s pending acquisition of Halucenex will put it in the growing space and its coming US OTC listing, will put it right in the heart of the action.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!