Psyence Biomed Ltd. (Nasdaq: PBM) has announced a conditional binding term sheet to acquire Clairvoyant Therapeutics Inc, a Canadian clinical-stage company focused on psilocybin-based therapies. The proposed acquisition aims to bolster Psyence Biomed's pipeline with Clairvoyant's synthetic psilocybin candidate, currently in Phase IIb trials for Alcohol Use Disorder (AUD). The deal involves an initial payment of US$500,000 in Psyence Biomed shares, with potential milestone-based payments of up to US$500,000. Additionally, Psyence Biomed will provide up to US$1.8 million to cover Clairvoyant's clinical trial costs.
Strategic Rationale for the Acquisition
According to Dr. Neil Maresky, CEO of Psyence Biomed, the acquisition aligns with the company's strategy to develop a diverse portfolio of psilocybin-based therapeutics. Clairvoyant's synthetic psilocybin candidate complements Psyence Biomed's existing nature-derived psilocybin program for Adjustment Disorder in palliative care. Furthermore, the acquisition expands Psyence Biomed's focus into AUD, a high-value indication with significant unmet medical needs.
Damian Kettlewell, CEO of Clairvoyant, expressed enthusiasm about joining forces with Psyence Biomed to accelerate the development of psilocybin therapy for AUD. Kettlewell highlighted the significant treatment gap in AUD, noting that fewer than 1% of the 50 million individuals at risk in the EU, Canada, and the UK seek drug therapy, with current treatments showing limited efficacy and compliance.
Clairvoyant's Phase IIb Clinical Trial
Clairvoyant's lead asset is a synthetic psilocybin-based candidate (CLA-PSY-201) being evaluated in a Phase IIb clinical trial for AUD. The trial is a 24-week, multi-center, randomized, double-blind, placebo-controlled study involving 154 subjects with moderate to severe AUD across 12 sites in the EU and Canada. Participants receive two administrations of 25mg psilocybin in conjunction with psychotherapy, compared to placebo. Topline data from the trial is expected in early 2025.
Psilocybin for AUD: Promising Evidence
Prior research suggests a strong rationale for psilocybin-assisted therapy in AUD. A 2022 NYU Langone study published in JAMA Psychiatry found an 83% average reduction in alcohol consumption with psilocybin-assisted psychotherapy. Another study from August 2024 indicated that a single dose of psilocybin was safe and effective in reducing alcohol consumption in AUD patients.
Terms and Conditions
The acquisition is contingent upon the execution of a definitive share purchase agreement and the satisfaction of customary closing conditions, including board approval, regulatory approvals, and due diligence. If successful, the acquisition would provide Psyence Biomed with two Phase II data readouts in 2025, potentially positioning the company as a leader in psychedelic therapeutics.
