In another sign of the industry’s shifting landscape and uncertain future of the treatment clinic model, Awakn Life Sciences has sold its last clinic and shifted its focus entirely to its clinical trials and biotech research.
This move is the latest in a string of industry re-structuring, with treatment clinics like Field Trip and Ketamine Wellness closing or selling off their clinics. Awakn had been developing both drug development and treatment center verticals, yet like Wesana and Field Trip, eventually could not maintain both divisions. The psychedelic medicine industry is in a new post-2021 reality, one where capital is not as readily available and where it’s taking much longer for the sector to develop and sustain higher-priced models.
Awakn Life Sciences will now focus its attention and resources on its Phase 3 trial using ketamine for Alcohol Use Disorder — a study that is following impressive results from its Phase 2 trial. With government support, Awakn is betting this advanced trial is a better path to commercial success.
See the full press release below.
And for a look at a new company attempting to reshape how ketamine treatments are delivered — check out our interview with PsychMD below.
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Awakn Life Sciences Completes Sale of Awakn Clinics In Norway
Sale Completes Awakn’s Exit From Healthcare Services To Focus Solely on Biotechnology Research and Development
TORONTO, CANADA, Aug 1, 2023 – Awakn Life Sciences Corp. (NEO: AWKN, OTCQB: AWKNF, FSE: 954) (“Awakn” or the “Company”) a clinical-stage biotechnology company developing therapeutics to treat addiction with a near-term focus on Alcohol Use Disorder (AUD), announces today the sale of its clinics businesses in Norway, comprising of Awakn Clinics Oslo and Awakn Clinics Trondheim. The clinics have been purchased in a management buyout.
Todays announcement marks the completion of the strategic review announced
on June 9th 2023 and Awakn’s exit from healthcare services. This enables Awakn to focus solely on its biotechnology research and development (R&D) programs. Awakn’s R&D programs are focused on developing therapeutics to treat addiction and are progressing well. Awakn’s lead program, AWKN-P001, racemeic ketamine plus psycho-social support to treat Severe AUD is expected to progress into Phase III in the UK in Q4 2023.
In consideration of the sale, Awakn will receive a fee from the new owners for the acquisition of both clinics and also executed an agreement with the new owners for the license of selected elements of Awakn’s healthcare services intellectual property (“IP”), and a license for Awakn Kare in Norway. In return Awakn will receive a share of revenue from the clinics on an ongoing basis.
Awakn CEO Anthony Tennyson said: “This is a key transaction and a very important milestone for Awakn and we are very pleased to have completed it. This will allow us to solely focus all our resources and energy on our R&D programs which are moving at pace with our phase III clinical trial starting this year. It also allows these two clinics to continue to do the exceptional work they are currently doing for their clients, and there is no one better positioned in the Nordics to do that work than Dr. Lowan Stewart and Dr. Ingrid Castberg. They are pioneers in this field and I have no doubt will make a huge success of the business. It has been a priviledge working with them.”
Dr. Lowan Stewart, Director of Nordics at Awakn said: “Working with the great team at Awakn over the last few years has enabled us to significantly expand access to patients in Norway, building a state-of-the-art clinic in Oslo and opening the first such clinic in Trondheim. Moving forward as a wholly Norwegian company, we will be focusing on providing the best care available to patients in the Nordics. We are also happy to be able to continue to offer the Awakn Kare protocol to people suffering with alcohol use disorder.”
About Awakn Life Sciences Corp.
Awakn Life Sciences Corp. is a clinical-stage biotechnology company developing therapeutics targeting addiction. Awakn has a near-term focus on Alcohol Use Disorder (AUD), a condition affecting 40 million people in the US and key international markets and 285m people globally for which the current standard of care is inadequate. Our goal is to provide breakthrough therapeutics to addiction sufferers in desperate need and our strategy is focused on commercializing our R&D pipeline across multiple channels.
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