NEW YORK - Psyence Biomedical Ltd. (NASDAQ:PBM), a biotechnology company specializing in botanical psilocybin-based therapeutics, today announced a conditional agreement to acquire Canada-based clinical-stage company Clairvoyant Therapeutics Inc. The acquisition aims to expand Psyence Biomed's pipeline with a synthetic psilocybin candidate for treating Alcohol Use Disorder (AUD).
Clairvoyant is currently conducting a Phase IIb clinical trial with 154 subjects to assess the efficacy of a synthetic psilocybin-based treatment for AUD, with top-line results expected in early 2025. Psyence Biomed will issue $500,000 in common shares to Clairvoyant's shareholders upon closing, with additional share-based payments of up to $500,000 tied to pre-specified milestones by December 2026. Furthermore, Psyence Biomed will provide up to $1.8 million to Clairvoyant to settle its liabilities, primarily related to clinical trial costs.
Dr. Neil Maresky, CEO of Psyence Biomed, expressed that the acquisition aligns strategically with their nature-derived psilocybin development program and could transition the company to a commercial stage. He also noted that positive Phase II data could establish Psyence Biomed as a leader in developing psychedelic-based therapeutics for mental health disorders.
Damian Kettlewell, CEO of Clairvoyant, highlighted the potential of psilocybin in AUD treatment, citing academic studies that showed significant reductions in alcohol consumption. He remarked on the urgency to address the treatment gap in AUD, where less than 1% of at-risk adults seek drug therapy.
The proposed acquisition is contingent upon the completion of a definitive share purchase agreement, board approval, regulatory strategy approvals, and satisfactory due diligence, among other customary closing conditions.
Psyence Biomed is known for its focus on developing nature-derived psychedelic therapeutics for mental health disorders, particularly in palliative care. The company emphasizes an evidence-based approach to its research and development efforts.
This news is based on a press release statement and the completion of the proposed acquisition is subject to various conditions being met.
In other recent news, Psyence Biomedical Ltd. has signed an exclusive licensing agreement with PsyLabs, securing a supply of EU GMP nature-derived psilocybin. This move is intended to advance clinical trials for the treatment of Alcohol Use Disorder and other Substance Use Disorders. Under the agreement, PsyLabs will supply Psyence Biomed with pharmaceutical-grade psilocybin for future clinical trials, including a planned Phase IIb trial for patients with advanced cancer diagnoses. PsyLabs, federally licensed to cultivate and export psilocybin mushrooms for medical and research purposes, is working towards commercial production. The development work for the licensed product is projected to continue through 2024 and into 2025. Psyence Biomed, the first Nasdaq-listed company focusing on botanical psilocybin-based medicine, remains committed to evidence-based approaches in developing treatments for mental health disorders. These are the latest developments in the company's operations.
InvestingPro Insights
In the wake of Psyence Biomedical Ltd.'s announcement to acquire Clairvoyant Therapeutics Inc., market performance data reflects a challenging period for the biotech company. According to InvestingPro, Psyence Biomed's market capitalization stands at a modest $3.84 million. The company's price-to-earnings (P/E) ratio, an indicator of market expectations about the company's growth and profitability, is notably negative at -0.05, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at -0.27. This suggests that investors have concerns about the company's current profitability and future earnings potential.
InvestingPro Tips indicate that the company's operational performance has room for improvement, with an operating income of -$2.75 million for the same period. Furthermore, both EBIT and EBITDA figures align with this operating loss, underscoring the financial challenges faced by Psyence Biomed. The basic and diluted earnings per share (EPS) for continued operations also reflect significant losses at -$7.85.
The stock's performance has seen marked volatility, with the price total return over the past year plummeting by -97.95%. The recent price, at the previous close, was $0.23, which is just 1.58% of its 52-week high, indicating a significant downtrend in investor confidence. Despite these challenges, the average daily volume over the past three months has been substantial at 2.84 million, suggesting active trading interest in the stock.
InvestingPro offers a range of additional tips for investors considering Psyence Biomed, with more detailed insights available through their platform. For investors looking to understand the full scope of Psyence Biomed's financial health and market potential, InvestingPro provides a comprehensive set of tools and analytics.
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