Steady as she goes
It’s been a rough couple of quarters for the psychedelics sector at large. Some companies have been able to avoid the correction, but for the most part, even most of the known names have taken somewhat of a hit. Not Revive Therapeutics (RVV.C). They seem to just keep humming along. This stability is rare in such a young industry, but, Revive has actually been around for a while.
They were early into the cannabis space, and while there are differences between cannabis and psychedelics, it’s clear that experience from the cannabis sector carries over into psychedelics. You have illegal substances largely controlled by the black market with a growing wave of research and public opinion in favor of legalization. So Revive has already been through all of that, whereas a fresh new psychedelics company that is largely comprised of ex-mining folk aren’t going to have that same life experience. And Revive’s investors like how the company has spread itself across a number of verticals, not relying on one singular event or outcome.
Revive is developing new delivery systems for psilocybin, while also studying the effects of psilocybin on traumatic brain injury (TBI). Revive has applied for orphan drug status, which the company has gotten twice through its cannabinoids pharmaceuticals program.
But the company has also gone outside of psychedelics and cannabis and into things like Covid19 treatments, opening them up for an interesting global opportunity as several countries are struggling with itheir vaccine efforts. Covid treatments don’t really sound sexy to a population who have largely been vaccinated, but vaccine shortages don’t really exist in the West, it’s not a problem we have faced. Things are starting to open up, and it’s beginning to feel like we are getting out of this mess.
In Canada, 66% of the population has had its first dose. 86% of shots that have gone into arms worldwide have been administered in high- and upper-middle-income countries. Only 0.3 percent of doses have been administered in low-income countries. But it’s not only a wealth gap, geography has played a huge role in regions like Australia, New Zealand, South East Asia, and South America which have all been getting the shaft on supply agreements.
Australia, the 10th richest country in the world only has 3.1% of its population vaccinated. In Vietnam, a country whose GDP has been growing steadily year over year for the past decade has only 1.8% of its population getting a single dose, with 0.1% fully vaccinated. At this rate, it would take the country 10 years to fully vaccinate its population. Thailand isn’t doing much better at 2.7% fully vaccinated, Indonesia is comparable at 3.4%.
South America has been hit particularly hard. Many believe the Brazilian variant made a bad situation a lot worse. Brazil’s president Jair Bolsonaro mocked the virus and downplayed its significance in the media. Brazil was also slow to order vaccines as its leader had a hard time accepting the virus might actually be real. He did finally cave and the country has successfully ramped up vaccine efforts, they have now given 27% of their population its first dose, and 11% are fully vaccinated. Still, a long way to go, but they are actually faring better than some of their South American compadres. Arge
In Colombia, many low-income workers still went to work, despite the lockdown measures. Colombia doesn’t have the same safety nets and stimulus cheques that Western countries do, making lockdowns less effective. Iván Duque, Colombia’s president was vaccinated only this week as the country has had a painfully slow vaccine rollout. Only 7.7% of the population has been fully vaccinated and the death toll is at 596 per day, up from earlier in the year. With widespread political unrest as a result of an unpopular new tax on the middle/lower classes to help pay for the pandemic losses, millions took to the streets in protest. A country already trending in the wrong direction got even worse. Colombia’s capital Bogotá is opening up again despite a spike in numbers, the mayor has stated she understands the city can’t survive another lockdown, and that they have been largely unsuccessful.
In Bolivia, Russia hasn’t come through on its promised shipments of the Sputnik V vaccine, resulting in only 4.8% of the country being fully vaccinated. Bolivia’s reliance on Moscow underscores how governments across the region have turned to Russia’s Sputnik V drug amid fears of being left behind in the global scramble for vaccines.
Central America has also gotten the short end of the stick. Honduras’ president said last month that his government may end its diplomatic recognition of Taiwan and establish ties with China in order to access Chinese vaccines. Something needs to change, only 0.4% of the population has been fully vaccinated. Its Southern neighbor Nicaragua is at a flat 0.0% fully vaccinated. So far, the Biden administration has said it will provide 80 million vaccines overseas by the end of this month — 20 million federally-authorized ones and 60 million AstraZeneca doses that are not yet approved for U.S. use.
So how does Revive fit into all of this?
Last week Revive announced an agreement with Mumbai-based Supriya Lifescience to pursue clinical registration and commercialization of Bucillamine to treat COVID-19 through emergency use authorization in India. . Revive sees this as a way to expand its work globally.
“While our Phase 3 clinical study for COVID-19 is ongoing in the USA, we are laying the groundwork by partnering with Supriya to execute on our global manufacturing and commercialization plans and leveraging their regulatory expertise and commercial reach with 78 countries they currently supply pharmaceutical products to,” Michael Frank, CEO
India only has 3.5% of its citizens fully vaccinated, with daily deaths currently at 2,330.
Revive is reacting to the changing landscape, but they didn’t just pull bucillamine out of nowhere. Revive tested the impact of bucillamine on gout in 2015 in a Phase 2 FDA study. The results met primary efficacy and safety endpoints for the treatment of gout, however, the project was put on hold to direct more focus towards emerging cannabidiol-based intellectual property and therapeutics. With COVID-19 causing inflammatory responses in the body, Revive revisited the concept of using Bucillamine as a treatment option, pulling from prior positive data from its 2015 gout study and re-purposing the compound to specifically target the inflammation of the lungs. Bucillamine has been prescribed for decades in countries like Japan and South Korea.
Revive’s stability is a combination of diversity, and how they run their business. The company has 3 verticals, all of which have multiple revenue streams and near-term opportunities to scale. They have a host of patents, they were given previous orphan drug status from the FDA in their cannabis division and are in Phase 3 trials for bucillamine for Covid treatments, with plans to do clinical trials using psilocybin in aiding traumatic brain injury (TBI). This company has a lot going on. They don’t put out lofty press releases, or overpromise and under-deliver. They run their business properly without any gimmicks.
Full disclosure: Revive Therapeutics is an Equity Guru marketing client.