The Israeli biotech company Polyrizon Ltd. (Nasdaq: PLRZ) announced on March 14 that it has signed a non-binding Letter of Intent (LOI) with an undisclosed psychedelics-focused biotech company to develop novel intranasal formulations for psychedelic-based therapeutic applications.
The agreement aims to combine Polyrizon's proprietary intranasal hydrogel platform with psychedelic compounds to potentially enhance drug delivery, bioavailability, and patient outcomes. This collaboration represents a significant step in the growing field of alternative drug delivery systems for psychedelic medicine.
Strategic Partnership Details
Under the terms of the non-binding LOI, Polyrizon will lead the formulation development process, applying its mucoadhesive drug delivery technology to optimize the absorption and effectiveness of the psychedelic compounds. The unnamed partner company will fund the research and development process, including feasibility studies necessary to validate the approach.
"Our proprietary intranasal platform has the potential to enhance drug delivery bioavailability. We believe that intranasal delivery has the potential to improve patient outcomes by providing a prolonged drugs residence time and more efficient alternative to traditional administration methods," said Tomer Izraeli, CEO of Polyrizon.
The collaboration highlights the increasing interest in alternative delivery methods for psychedelic compounds, which traditionally face challenges related to bioavailability, onset time, and dosing precision. Intranasal administration could potentially address these limitations while improving patient accessibility and compliance.
Technology Platform
Polyrizon's technology includes two proprietary drug delivery methods: Capture & Contain and Trap & Target. The Capture & Contain system functions as an immune booster that protects users from airborne contaminants, while the Trap & Target system is specifically designed to enhance the bioavailability of active pharmaceutical ingredients.
For this psychedelics partnership, the company will likely leverage its Trap & Target technology to optimize the delivery of psychedelic compounds through the nasal mucosa, potentially allowing for more rapid onset of action and improved bioavailability compared to oral administration.
Financial and Commercial Implications
Following successful proof of concept studies, the companies intend to negotiate a definitive agreement that would outline intellectual property ownership, commercialization rights, and financial terms. According to the LOI, Polyrizon would receive royalty payments for any future commercialization of products developed through this collaboration.
The announcement briefly boosted Polyrizon's stock by 16% during pre-market trading, though the enthusiasm has since subsided. The company, which completed a $4.2 million initial public offering in October 2024, has seen its stock price decline from an all-time high of $3.29 in December to approximately $0.59 currently.
This volatility reflects Polyrizon's status as a pre-revenue, development-stage company that has yet to bring commercial products to market—a common pattern for small-cap biotech firms after initial investor enthusiasm wanes. Approximately 67% of Polyrizon's shares are held by company insiders.
Market Context and Potential Impact
The psychedelic therapeutics market has gained significant attention in recent years, with numerous clinical trials investigating compounds such as psilocybin, MDMA, and ketamine for conditions including treatment-resistant depression, PTSD, and anxiety disorders.
Effective drug delivery systems remain a critical challenge in this emerging field. Intranasal delivery offers several potential advantages, including bypassing first-pass metabolism, providing rapid onset of action, and enabling non-invasive administration—all factors that could improve both clinical outcomes and patient experience.
If successful, this collaboration could position Polyrizon as a key technology provider in the psychedelic medicine space, potentially opening doors to additional partnerships with other pharmaceutical companies developing psychedelic and non-psychedelic therapeutics that could benefit from enhanced intranasal delivery.
Neither company has specified which psychedelic compounds will be formulated using Polyrizon's technology or provided a timeline for development milestones. The partnership remains in early stages, with further details expected as the collaboration progresses toward proof of concept and potential definitive agreements.
