Mydecine Innovations Group (MYCO.C) signed a non-binding letter of intent to acquire NeuroPharm, a Canadian-based healthcare company involved in the nascent shroom-space earlier this week. The all-share deal will cost Mydecine $6 million, payable at $0.90, and the company combination will focus on an integrated health and wellness research strategy and the development of products underpinned by therapies to assist veterans with mental health issues.
“The exceptional roles and responsibilities Canada’s military and veterans, EMS and front-line personnel undertake on a daily basis, contribute to these professional’s underlying mental health challenges. I look forward to working with NeuroPharm’s talented clinicians, scientists, academics and industry leaders focused on responding to these individual’s mental health and wellness needs in the years to come,” said Josh Bartch, CEO of Mydecine Innovations Group.
The combined company created by Mydecine and NeuroPharm will focus on developing products to help veterans suffering from mental health issues using psilocybin.
Psilocybin is a hallucinogen that works by activating serotonin receptors, mostly in the prefrontal cortex, which handles mood, cognition and perception. Hallucinogens also work in other brain regions involved in the regulation of arousal and panic responses. The impact of the effects of the drug are dependent on how much you’ve taken, your past experiences and your expectations of the experience. After the gut ingests and absorbs psilocybin, the body converts it to psilocin and the hallucinations start after said converted chemical makes the rounds to the brain. Onset time is roughly 30 minutes from ingestion and the trip lasts between four to six hours.
NeuroPharm has developed technology to help treat various mental health conditions, including PTSD, depression, addiction, anxiety and panic disorders as well as migraine and cluster headaches. Studies performed by the Imperial College of London, University of Zurich, Johns Hopkins, NYU, and UCLA suggest that psilocybin-assisted therapy could be a revolutionary treatment for depression and addiction.
Post traumatic stress disorder (PTSD) is a psychological response to the experience of intensely traumatic events, and doesn’t discriminate on age, culture or gender. It’s estimated that 10% of war zone veterans, including war-service veterans and peacekeeping forces, will develop post-traumatic stress disorder, while others may experience only some of the symptoms associated with this condition. It’s not exclusive to soldiers, either. It’s been known to manifest in victims of domestic violence, emergency medical services personnel and other first responders.
“Our mission is to build a capability that will truly have a focus on veterans, EMS and other front-line personnel. This new capability will bring to the table unique skillsets to meet this enormous challenge of building veterans, EMS and front-line staff confidence and restoring their overall wellness. With our experienced team, we understand their unique circumstances related to service that may have contributed to operational stress injuries namely post-traumatic stress disorder (PTSD), depression or anxiety” said Colonel (Ret’d) Richard Pucci, chairman and CEO NeuroPharm Inc.
The key to this deal is NeuroPharm’s connections and pre-established relationships with global military organizations, as well as an experienced cross-functional team ready to guide the product from cultivation through drug delivery system development, execution of clinical trials and finally on to product commercialization and marketing. Having all of that in the bag should streamline the specifics, and put them well ahead of their competitors.