Xphyto Therapeutics (XPHY.C) subsidiary Xphyto Therapeutics entered into an agreement with Applied Pharmaceutical Innovation for the synthesis of pharma-grade psychedelic compounds and development of standard operating procedures to attract regulatory approval, according to a press release.
The ability to produce pharmaceutical ingredients at industrial-scale is an important component of getting Xphyto’s psychedelic program off the ground, as they expect a large-scale supply shortage of approved pharma-grade psychedelics.
“In late 2020, XPhyto secured a development agreement for the industrial production of psilocybin with a leading German university. Now, with Applied Pharmaceutical Innovation, we will turn our minds to the industrial production of additional psychedelic compounds. The Company plans to expand its psychedelic programs in 2021, including scalable production of pharmaceutical grade compounds, drug formulations, and clinical evaluation,” said Hugh Rogers, CEO of XPhyto.
Xphyto Therapeutics is a company neck deep in the burgeoning psychedelics field. Officially, they’re a bioscience accelerator with a focus on drug delivery and diagnostics and they’re always looking for new pharmaceutical ingredient investment opportunities including precision transdermal and oral dissolvable drug formulations; rapid, low-cost infectious disease and oral health screening tests; and standardization of emerging active pharmaceutical ingredients for neurological applications, including psychedelic compounds and cannabinoids.
Applied Pharmaceutical is a non-profit out of the University of Alberta that works to support drug development for the industry and its innovators. They have an interdisciplinary team of more than 30 pharmaceutical scientists, clinicians and market experts, offering the industry access to their scientific expertise in a way that supports and theoretically translates into to commercial success. This includes intellectual property and ownership of the work product of the funder, as well as focused and efficient project execution and operations that are complaint with all existing regulations.
It’s still early days yet, both for Xphyto and the psychedelics sector as a whole. Especially as analysis from Data Bridge Market Research has the market growing with a compound annual growth rate (CAGR) of 16.3% between 2020 to 2027 and expects it to reach USD$6,859.95 million by 2027 from USD$2,077.90 million in 2019.
Right now, Xphyto’s market valuation is approximately $165 million, but should it scale in accordance with market development, then this could definitely be one to watch.
Xphyto’s boost on the day is only 4.4% and they’re presently trading at $2.82, but that’s only part of the story here. Even though they’ve started a gradual downward trend, which today’s price bump seems to have ended, they’re in a considerably better position than they were on December 31, when they closed at $1.90.
If you missed Jody Vance’s discussion with Hugh Rogers, CEO and director for Xphyto, here’s another opportunity:
Full disclosure: Xphyto Therapeutics is an equity.guru marketing client.