How interested are pharmaceutical companies in psychedelics? While some are hesitant to even discuss where they stand on this restricted class of drugs, a deal inked last month validates the path of at least one company developing next-generation psychedelics.
In January, Mindset Pharma (CNSX: MSET) (OTCMKTS: MSSTF) announced a collaboration with Otsuka Pharmaceutical, specifically with the McQuade Center for Strategic Research and Development, a division of the global Otsuka family of companies that focuses on early-stage drug discovery for mental health and renal disorders.
As part of its strategic investment in Mindset, the division made an upfront cash payment of US$5 million. While Otsuka has existing partnerships with Atai Life Sciences and was an investor in Compass Pathways, Mindset CEO James Lanthier explained why this deal is unique from existing collaborations in the psychedelic space, and further, how the cash payment is just a sliver of the funding Otsuka has committed.
“This is the first partnership between a category-leading pharmaceutical company and a psychedelic biotech company focused on new psychedelic drugs,” he said. “Otsuka is a top global neuroscience company with a strong track record and expertise in developing and bringing to market therapeutics to treat mental health disorders. Our partnership with them is significant as the combination of funding and Otsuka’s operational expertise significantly increases the likelihood of success for our new drug programs.”
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