The winds of change are sweeping across the Australian psychedelic landscape following the Therapeutic Goods Administration’s (TGA) landmark decision to reclassify MDMA and psilocybin. This reclassification has unlocked new possibilities for mental health treatments, paving the way for an exciting era in psychedelic medicine
In the wake of this regulatory shift, Australian psychedelic companies have taken advantage of this new era of opportunity. Emyria (ASX:EMD) began 2023 armed with a full war chest, having received over $2 million in an R&D tax incentive scheme and secured $3 million from a recent share placement. Furthermore, a tranche led by Sixty Two Capital and Taylor Collison injected an additional $2.5 million to support the development of its MDMA-assisted therapy program.
Creso Pharma (ASX:CPH) also responded swiftly to the TGA’s decision. The company raised AUD$2 million through a share issue and secured commitments for an additional $2.5 million via the issuance of secured convertible notes. These funds are earmarked to support marketing, sales, clinical trials, and debt repayment.
Incannex Healthcare (ASX:IHL) made significant strides as well, finalizing a loyalty option offer to shareholders to raise AUD$23.6 million. The capital raised will accelerate the company’s research and development, further solidifying its position in the psychedelic space.
Little Green Pharma (ASX:LGP) took a leaf out of the same book, announcing a successful $5 million institutional placement. In addition, the company secured commitments to raise AUD$27.2 million from existing investors, further buoying their financial position.
Australia’s psychedelic sector is thus experiencing an exciting period of growth and investment. The reclassification of MDMA and psilocybin by the TGA has created a fertile environment for these companies to raise capital and advance their research and development efforts. This pivot towards psychedelic medicine signals a significant shift in mental health treatment and offers promising prospects for investors interested in this burgeoning industry.