Silo Pharma: A Capital Efficient Strategy Targeting Psychedelics
February 23rd, 2021
Psychedelics, Top News
Psychedelics have the potential to revolutionize mental health disorders that have been woefully underserved by conventional therapies. According to Data Bridge Market Research, psychedelic drug sales will grow from just over $2 billion in 2019 to over $6.8 billion by 2027, which represents a 16.3% compound annual growth rate.
Investors have many different options for exposure to the nascent industry with over 30 publicly traded companies in the space. These companies are doing everything from running psychedelic retreats to operating ketamine clinics to advancing psychedelic drugs through the FDA’s clinical trial process to bring mainstream therapies to market.
Silo Pharma Inc. (OTCQB: SILO) is a biopharmaceutical company focused on merging traditional therapeutics with psychedelic research to help those suffering from depression, post-traumatic stress disorder, Parkinson’s disease and other rare neurological disorders. With capital in hand, the company is actively acquiring intellectual property and partnering for research.
Many psychedelic companies aim to advance psilocybin and other psychedelics through time-consuming and expensive FDA clinical trials. According to a study of over 60 clinical trials between 2014 and 2018, the mean cost to develop and bring a new drug to market—accounting for the cost of failed clinical trials—amounted to $1.3 billion.
Silo Pharma’s strategy is focused on acquiring intellectual property and partnering with world-class medical research organizations. With a focus on Breakthrough Therapy, Orphan Drug and Fast Track statuses, the company aims to partner with large pharmaceutical companies to license the vetted IP and undergo trials.
The company’s goal is to acquire and conduct initial studies on promising psychedelic compounds, identify clinical pathways and then partner with third parties to undergo actual trials. If these therapeutics are commercialized, the company aims to generate high-margin recurring revenue from royalties on sales that could unlock significant shareholder value.
Silo Pharma began executing on these plans in late-2020 when it signed an option agreement with the University of Maryland Baltimore for its central nervous system homing peptides. These pathology-specific peptides could be essential in helping psilocybin-based therapies target diseased tissue and treat Multiple Sclerosis and other neuroinflammatory diseases. In February, the company finalized the license by signing a Master License Agreement with the University of Maryland, paving the way for its unique commercialization strategy.
The company also filed new provisional patent applications pertaining to the CNS-delivery of unique anti-inflammatory therapeutics coupled with psilocybin. This intellectual property adds to the company’s existing portfolio of provisional or pending patents, including cancer-related ones, that the team continues to build out over time.
Earlier this year, the company licensed its IP covering psilocybin for cancer to Alkido Pharma Inc. (NASDAQ: AIKI) in exchange for a one-time $500,000 cash payment and $500,000 in convertible preferred stock. The company is also entitled to potential 2% royalty payment on net sales in the event that the licensed property is commercially developed.
More recently, the two companies signed a letter of intent to grant Alkido a worldwide exclusive sublicense for use of its peptide therapy, combined with psilocybin, in the therapeutic treatment of neuroinflammatory disease in cancer patients. The specific terms of the agreement have yet to be negotiated but the deal furthers their collaboration.
Silo Pharma recently raised $4.275 million from existing accredited and institutional investors that it plans to use for the continued development of its therapeutic pipeline. With the new capital in hand, the company is well positioned to continue executing on plans similar to the University of Maryland and Alkido Pharma deal to bring therapeutics to market.
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/.