Psychedelics Funding At Its Best: $1.5M Destined To Psilocin Clinical Trials In Australia

Psychedelics biopharma company Lobe Sciences Ltd. LOBEF signed a deal with Cantheon Capital, a development of cannabinoids and psychedelic drugs supporter, for aggregate proceeds to the company of up to $1.5 million for an annual term with a 15% interest.

Funding for psychedelics research and clinical trials is certainly here to stay. In the last couple of weeks, other biotech companies advancing both classic and next-generation psychedelic medicines such as Bright Minds DRUG, ATAI Life Sciences ATAI and Freedom Biosciences have also signed considerable loan agreements with major investors towards designing and conducting their respective instances of psychedelic studies.  

In this specific case, Lobe is set to use that funding for three clinical trials scheduled in Australia evaluating psilocin analogues L-130 and L-131, to be conducted together with partner and contract research organization iNGENū Pty Ltd. 

Psilocin is the metabolized version of psilocybin, which is known as the active psychedelic ingredient in so-called "magic mushrooms."

As for the agreement, Lobe’s CEO Philip Young expressed: "The opportunity to advance our proprietary psilocin compounds in multiple human trials puts Lobe in a leading position within the psychedelic biotech marketplace.” 

“Australia offers numerous advantages for our clinical development. In addition to the commitment from Cantheon we will be able to take advantage of the Australian Federal Government's Research & Development tax incentive program which will provide a 43.5% rebate on our research and development expenses in Australia," he further stated.

Cantheon’s general partner Aaron Ray added: "Lobe Sciences fits our criteria as they have progressed rapidly in the last year and are now ready to initiate human clinical trials with their novel psilocin analogues L-130 and L-131. We look forward to working together as we work to identify new and effective therapies."

Photo by Ramón Salinero on Unsplash