Andrew Forrest doubles down on therapeutic ecstasy biotech Emyria

- May 1, 2023 2 MIN READ
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ASX-listed biotech Emyria(ASX: EMD), which is developing psychotherapy treatments using MDMA (aka ecstacy) and psilocybin (aka magic mushrooms), has raised $2.5 million in share placement backed by existing investor Andrew Forrest through the healthtech fund Tenmile, part of his private investment group, Tattarang.

The $2.5 million placement was jointly led by Perth’s Sixty Two Capital and Sydney investment firm Taylor Collison, with the follow-on from Tenmile.  The shares were offered at $0.15, a 11.76% discount to the last traded price of $0.17 on April 21

Emyria managing director Dr Michael Winlo said the funds will be used to support delivery of MDMA-assisted and psilocybin-assisted therapy from July 1; clinical trials for the company’s cannabinoid products and for preclinical screening for Emyria’s novel MDMA-inspired drug discovery program being developed with the University of Western Australia.

“This $2.5 million placement shows the confidence of our strategic investors in Emyria’s vision and potential,” he said.

“This investment enables us to advance multiple, innovative treatment development programs as well as deliver scalable, evidence-generating psychedelic-assisted therapy with our specialist partners. We are well set to deliver on our vision of improving the lives of patients with mental health and neuroscience challenges while generating enduring value for our Shareholders.”

The Phase 3 clinical trial towards the  registration of high-potency cannabinoid product, called EMD-RX9 is currently underway. It will be an over-the-counter treatment for anxiety and stress and the company has signed a commercialisation Term Sheet with Aspen Pharmacare Australia to generate royalties once the treatment is registered.

Earlier last month, the biotech firm announced collaborations psychiatrist and MDMA researcher Dr Ben Sessa as well as the PAX Centre, to treat depression and PTSD symptoms using MDMA and psilocybin via a network of trained therapists and psychiatrists. The project is due to begin from July 1 via ethics-approved clinical trials, with Emyria’s care protocol is currently under ethics committee review.

The company’s goal is to establish an evidence-based, licensable care model for both MDMA- and psilocybin-assisted therapy that can scale through partner sites.

Emyria’s share price fell nearly 9% today on the news of the placement to price of $0.15 cents.

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