Innovation Pays Off in Psychedelics
December 18th, 2020
App, Exclusive, Psychedelics, Top Story
There has been significant interest in the psychedelic space and of the promise psychedelic molecules show in treating mental health conditions. Mental illness is a ubiquitous human experience and an insufficiently addressed medical necessity. Psychedelics offer an alternative to ineffective treatments by acting via a different mechanism of action. However, psychedelic pharmaceuticals need improvement to provide novel drugs that are engineered to have fewer side effects, better efficacy, and out of clinic applicability. The team at MagicMed Industries Inc. intends to provide a solution.
The value add that MagicMed provides is building a library of psychedelic derivatives, called the Psybrary™, to support and enable the development of new mental health drugs and ultimately create a much-needed solution for an underserved market. Libraries are not a new concept in the pharmaceutical industry. However, the Psybrary™ is an innovative and unique resource in the psychedelic pharmaceutical field.
This niche business model has created a buzz in the industry and has recently led MagicMed Industries Inc. to successfully complete an upsized and oversubscribed $8.1 million private placement that included investors like the Conscious Fund. With the ongoing development of its Psybrary™ and stellar management team, the company is well-positioned to capitalize on the industry’s move to create the next blockbuster mental health treatment.
Successful Capital Raise
Following an initial $2.5 million offering, MagicMed Industries saw significant investor interest and upsized the offering to more than $8 million.
The Conscious Fund, a leading early-stage venture fund investing in psychedelics, made a significant contribution to the funding round. Founding Partner Henri Sant-Cassia said, “We are very proud to be joining President and CEO Dr. Joseph Tucker, alongside his team, on this important journey, as MagicMed is one of the few next-generation innovators in the space.”
MagicMed plans to use a sizable portion of the funds received from the financing to expedite the expansion of the Psybrary™ by synthesizing and filing intellectual property on additional psychedelic derivatives based on the chemical structures of molecules like MDMA, LSD, ketamine, and ibogaine. The company expects the Psybrary™ to be a leading resource used by pharmaceutical and biotechnology partners to develop next-generation mental health treatments. The funds will also be used as general working capital and corporate expenses. President and CEO Dr. Joseph Tucker added, “We are pleased to have completed this offering and will be able to focus these additional resources on accelerating our growth strategy.”
Massive Psybrary™ Potential
Leading research institutions across the world including Imperial College London, University of California, Berkley, and Johns Hopkins have established psychedelic research centres. Moreover, these leading institutions are validating what many see as the substances’ astonishing therapeutic potential for a vast range of mental health indications, from depression to addiction and acceptance of mortality. However, psychedelic pharmaceuticals need improvement to provide novel drugs that are engineered to have fewer side effects, better efficacy, and out of clinic applicability. The team at MagicMed intends to do just that. By creating the Psybrary™, a vast library of novel drug candidates that are tailored for specific effects, MagicMed will undoubtedly provide partners with the potential to create numerous drug candidates for a market that is ultimately underserved.
MagicMed Industries’ Psybrary™ is a library of drug candidates (and the intellectual property that protects them) based on the core structures of known psychedelic molecules. The MagicMed team uses the structure of existing psychedelic molecules as a starting point from which to develop novel derivatives. By making a vast library of new molecules with altered structures, MagicMed can screen these creations to find new drug candidates with the desired characteristics that their partners need. MagicMed enables their partners to expedite products to market and allow partners to search, test and further tailor desired pharmaceuticals from derivatives contained in the Psybrary™. While most psychedelic companies are focused on the development of known generic psychedelics, MagicMed is employing a combination of synthetic biology and chemistry to build an entire library of novel drug candidates.
The Psybrar™ takes the development philosophy of a pharmaceutical company and it also adds novel synthesis and manufacturing technology to create additional drug diversity. Each derivative molecule that MagicMed creates is a potential patented drug development candidate. This approach allows the company to contribute to the development of several pharmaceutical candidates for the treatment of numerous indications and creates an iterative program that can improve candidate drugs, all of which are IP protected.
Figure 1. Drug discovery and development timeline. The current drug approval pipeline can take ~ 15 years. It is estimated that from 5,000 – 10,000 compounds only one new drug reaches the market. (Adapted from http://cmidd.northwestern.edu/files/2015/10/Drug_RD_Brochure-12e7vs6.pdf ; http://www.phrma.org/sites/default/files/pdf/rd_brochure_022307.pdf ).
In October, the company signed a research agreement with the University of Calgary to accelerate the development of its Psybrary™. The company also filed initial patents covering derivatized molecules based on psilocybin, which could be the first parts of its Psybrary™ to be licensed out to third parties for clinical development and commercialization.
Low Risk Model
MagicMed’s strong foundation of psychedelic derivatives, contained in the Psybrary™, will allow multiple partners to simultaneously advance their desired derivative molecules through preclinical and clinical testing. This will provide the company with multiple revenue streams from the onset. Furthermore, beyond licensing fees and milestone payments made during the development process, royalties on approved drugs will create long-term blue-sky potential. Their revenue model significantly de-risks the company and provides revenue streams from multiple partners. MagicMed’s diversified revenue stream has caught the attention of many high-profile investors in the psychedelics space, including The Conscious Fund, by providing a low-risk investment opportunity and high return potential.
MagicMed’s successful capital raise and diversified revenue model, as well as its stellar management team, has created an investment frenzy during their private placement. Undoubtedly, notable industry news such as the recent decriminalization of psychedelics in a number of U.S. states, funding of psychedelic research by the U.S. Defense Advanced Research Agency, as well as Canada providing exemptions allowing more than a handful of researchers to possess and use psilocybin for professional training, has created an appetite for innovators, such as MagicMed, in this sector. A frenzy of interest has captivated a new generation of researchers and investors. Regardless of the overall climate in the industry, the company is well-capitalized to execute on its plan to grow the Psybrary™, attract development partners and generate significant long-term shareholder value while maintaining a low risk investment model.
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.