ATA (ATAI), Dragon Pharmaceutical (DRUG), (LOBEF) – Funding Psychedelics at its Finest: $1.5 Million for Psilocybin Clinical Trials in Australia

Psychedelic Biopharmaceutical Company Lobe Sciences Ltd. LOBEF signed an agreement with Cantheon Capital, a support for the development of cannabinoids and psychedelic drugs, for an overall product returning to the company up to $1.5 million for an annual term with 15% interest.

Funding for psychedelic research and clinical trials is definitely here to stay. Over the past two weeks, other biotech companies have been advancing classic and next-generation psychedelic drugs, such as Brilliant minds MEDICATIONATAI Life Sciences ATAI and Liberty Biosciences have also signed a considerable number loan agreements with major investors towards the design and conduct of their respective instances of psychedelic studies.

In this specific case, Lobe is ready to use this financing to three clinical trials planned in Australia evaluating psilocin analogues L-130 and L-131to be carried out in collaboration with a partner and a 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 deal, Lobe CEO Philip Young expressed, “The opportunity to advance our proprietary psilocin compounds in multiple human trials places Lobe in a leadership position within the psychedelic biotechnology market.”

“Australia offers many advantages for our clinical development. In addition to Cantheon’s commitment, we will be able to take advantage of the Australian Federal Government Research and Development Tax Incentive Scheme which will provide a 43.5% discount on our research and development expenditure in Australia,” he added.

Aaron Ray, General Partner of Cantheon added, “Lobe Sciences meets our criteria as they have made rapid progress over the past year and are now ready to initiate human clinical trials with their novel psilocin analogs L-130 and L-131. We look forward to working together as we work to identify new and effective therapies.”

picture by Ramon Salinero on Unsplash