When searching for value investments, the key is finding firms that the market has either overlooked or undervalued. Being a nascent industry in an expansionary phase (recent pullback notwithstanding), with dozens of new companies popping onto the scene, the psychedelic medicine industry offers many of these value opportunities.
One of these value dark horses is Mydecine Innovations Group. In terms of developmental programs, Mydecine has one of the more interesting pipelines in the sector, yet the company has been perpetually floating on the cusp of taking that next step to the higher echelons of industry market caps.
With the recent news of Mydecine securing capital for their upcoming trials, the company might finally be ready to make that next jump. To help get you informed, here’s a little dive into what the company has been up to.
Mydecine’s Clinical Trials
Getting compounds through the approval process is the number one key to getting product to market, and Mydecine is one of a handful of companies in the industry working on Phase 2 clinical trials.
Psilocybin to Treat PTSD in Veterans
Mydecine is planning a Phase 2A clinical trial focusing on PTSD in veterans, EMS, and front-line workers. They have global test sites currently approved at Leiden University, University of Alberta, Royal Ottawa Hospital, and Western Ontario University, as well as several U.S. sites including Boston, Los Angeles, and San Francisco.
Psilocybin in Seamless Phase 2/3 Smoking Cessation
This summer Mydecine announced the launching of a seamless phase 2/3 clinical trial in early 2022. The partnership is with Johns Hopkins University and led by Dr. Matthew Johnson, one of the world’s most published scientists on the human effects of psychedelics. The planned study will evaluate Mydecine’s MYCO-001 as part of a smoking cessation treatment program in nicotine-dependent individuals.
Partnerships with Prestigious Institutions
In August, the company signed a five-year research agreement with Johns Hopkins University (JHU) School of Medicine, with research to be led by Professor of Psychiatry and Behavioral Sciences at Johns Hopkins University, Dr. Matthew Johnson. Previous clinical results from John Hopkins have shown six-month abstinence rates as high as 80 percent, better than any other smoking cessation treatment on the market today. This was the first psychedelic study to receive an NIH grant in the last 50 years.
The total addressable market of this drug is enormous and has strong existing clinical data that could lead have fast-track approval potential. According to the CDC, cigarette smoking is the leading cause of preventable disease and death in the United States, killing more than 480,000 Americans each year. There are approximately 19.7 million adults in America suffering from substance abuse disorder. Of those, 8.5 million suffer from both substance abuse disorder and mental health disorders. The costs to society through lost productivity, health care costs, and crime are more than $740 billion in America alone.
Additional Developments and Details
- Operating out of the University of Alberta and mycology lab in Denver, CO
- 5 Year Master Collaboration Research Agreement with John Hopkins University
- Discovered 40 compounds with pharmacological potential in mushrooms
- Have proprietary technology platform for virtual care delivery ( Mindleap )
Details on Mydecine’s Lead Drug Candidates
MYCO-001 is pure psilocybin from natural fungal sources. Currently being used for advanced clinical trials.
MYCO-002 is an entactogenic compound that has been created with the goal of reducing harm and improving the safety profile versus traditional MDMA.
MYCO-003 is a psilocybin-based formula with reduced anxiety potential, with the aim of removing the possibility of bad trips,
MYCO-004 is a patch-delivered tryptamine compound. Properties include short duration (approximately two hours), transdermal, precision dosing, and long-term compound stability.
Will Mydecine be able to capitalize on these impressive developments and move to the top tier of psychedelic medicine firms? Time will tell. The trials require years of work before a product will get to market. But industry analysts like Roth Capital seem to believe that there’s a ton of untapped potential here (Roth initiated coverage on Mydecine with a “Buy” Rating and a massive C$3.00 price target).
Stay tuned to Microdose for more company updates.