Psyence Gets Rights For Psilocybin Drug For Palliative Care

Company also closed a C$3 million capital raise.

Filament Health Corp. (OTCQB: FLHLF) (NEO: FH) and Psyence Group Inc  (CSE:PSYG) (OTCQB: PSYGF) announced the conclusion of a royalty-bearing, worldwide commercial licensing agreement granting Psyence the worldwide right to commercialize Filament’s natural psilocybin drug candidate, PEX010 (25 mg), within the context of palliative care.

Psyence is also designing market-leading clinical trials in the field of palliative care. The licensing agreement gives Psyence exclusivity in the United Kingdomthe United States, and the European Union within palliative care, and designates Filament as Psyence’s exclusive supplier of drug products within this context. According to the company statement, Filament will receive milestone payments of up to $3 million over the course of Psyence’s clinical development and marketing authorizations achieved by Psyence, as well as a percentage of future net sales in the low double digits.

“We are pleased to further develop our partnership with Filament Health, a leader in the development of natural psychedelic drug candidates,” said Dr. Neil Maresky, Chief Executive Officer of Psyence. “Our ability to deliver these much-needed substances to patients around the world is enhanced by Filament’s support.”

Psilocybin has come to the attention of many in the palliative field as a possible treatment. Marijuana Moment reported that Bipartisan members of Congress sent a letter to the Drug Enforcement Administration (DEA) requesting that terminally ill patients be allowed to use psilocybin as an investigational treatment without the fear of federal prosecution. “Rep. Earl Blumenauer (D-OR) started circulating a Dear Colleague letter to build support for the request last month. Now signed by a coalition of lawmakers on both sides of the aisle, the letter to DEA stresses that there are state and federal right-to-try (RTT) laws that should make it so certain patients can obtain the psychedelic given that it’s shown early potential in ongoing clinical trials.”

“Palliative care is a complex and under-examined area of study, and Psyence is leading the way with their use of natural psilocybin to treat associated indications,” said Benjamin Lightburn, Chief Executive Officer of Filament. “We are thrilled to expand our partnership with Psyence and look forward to the advancement of our drug candidate in this important field.”

Capital Raise

On December 14, Psyence announced that it had closed the second tranche of its previously announced private placement of up to C$3 million. The company issued 7,751,859 common shares at a price of C$0.12 per common share for gross proceeds of C$930,223 in addition to the previously announced closing of the first tranche for gross proceeds of C$1.22 million from a consortium led by Brandon Kerzner, a member of the globally recognized Kerzner family. Psyence also noted that its executives and officers have agreed to receive 1,186,134 common shares at a price of C$0.12 per common share in settlement of C$142,336 in consulting fees and salaries.

In addition to raising the funds, Christopher Bull was named as a strategic advisor. Bull will assist with technology patterning and strategic cross-licensing arrangements, patents and investor relations. Bull is a qualified chemical engineer, attorney, patent attorney and Certified Licensing Professional. Christopher is internationally recognized for his skills in relation to the development and execution of venture capital investment, patent, and intellectual property strategies for high-technology companies.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


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