Psychedelics Briefs: Mindset Pharma, Otsuka Pharmaceutical, Novamind, Foundations for Change

Otsuka Pharmaceutical’s McQuade Center for Strategic Research and Development (MSRD) has announced a collaboration with Mindset Pharma to support the development of psychedelic medicines. Mindset, which specializes in psychedelic medicines to treat neurological and psychiatric disorders, is receiving a strategic investment from MSRD to support the discovery and development of its novel chemical entity assets.

MSRD will financially and operationally support the development of 2 families of Mindset’s novel psychedelic compounds through Phase 1a and 1b clinical trials, with an upfront cash payment of $5 million and the potential to later expand the collaboration to continue development of the compounds as pharmaceutical products. In exchange, Mindset has granted MSRD right of first refusal with respect to any asset sale, exclusive licensing or collaboration opportunities pertaining to the drugs, and a right of first negotiation with respect to a merger, acquisition or asset sale related to Mindset.

The deal with MSRD follows Mindset’s recent announcement that the company has filed an international patent application covering its Family 3 novel psychedelic compounds. Mindset said in a news release that the compounds “have demonstrated half-lives extending well beyond those exhibited by comparable classical psychedelic drugs with no significant reduction in binding affinity at the serotonin 5-HT2A receptor.”

“Our family 3 compounds are substantially differentiated from the other families that we are pursuing in that we believe they may demonstrate pro-cognitive benefits at doses without hallucinogenic liability. This paired with their longer half-lives makes them interesting drug candidates for treating more fragile population groups such as children or geriatric patients where the psychedelic effect is likely undesirable,” Joseph Araujo, chief scientific officer of Mindset, said in a statement. “Also, we believe that such compounds may be optimal for indications in which a long term, micro-dosing, paradigm is advantageous, such as ADHD or Alzheimer’s disease.”

Novamind Acquiring Foundations for Change

Novamind, the Toronto-based, psychedelics-focused mental health company, has signed an agreement to acquire Foundations for Change, an Arizona-based practice that specializes in ketamine-assisted psychotherapy from its stockholder, Jeff Edelman. The deal is expected to close this month, pending regulatory approvals.

Foundations operates an outpatient clinic in Peoria, Arizona, and is slated to open a larger second location in Phoenix in 2022. The company will temporarily operate as “Foundations for Change by Novamind” until the completion of a recently announced rebrand. Edelman will remain with the organization as medical director for both facilities.