XTL Biopharmaceuticals Acquires Psyga Bio to Create Leading Psychedelic Therapeutics Platform Following Trump Executive Order
Key Insights
XTL Biopharmaceuticals announced acquisition of Psyga Bio (search) for 40% equity stake, positioning the company as a leading psychedelic biotechnology platform with seven approved Phase 2a clinical trials.
The transaction follows President Trump's April 18, 2026 Executive Order directing FDA to accelerate psychedelic therapy research and approval pathways for serious mental illness (search) treatment.
Psyga operates a licensed GMP-ready manufacturing facility for psilocybin and ibogaine production, with a proprietary library of over 180 unique mushroom strains.
XTL Biopharmaceuticals Ltd. announced it has entered into a definitive share purchase agreement to acquire 100% of Psyga Bio (search) Ltd., an advanced biotechnology company focused on psychedelic and functional mushroom therapeutics. The transaction positions XTL as a leading publicly traded psychedelic biotechnology platform following significant U.S. regulatory momentum in the sector.
Strategic Acquisition Structure
Under the purchase agreement, XTL will acquire all outstanding shares of Psyga in exchange for American Depositary Shares (ADSs) representing 40% of XTL's issued and outstanding share capital immediately after issuance. No cash consideration will be paid at closing.
The deal includes milestone-based earnouts providing Psyga shareholders with additional ADSs representing 10% of XTL's share capital upon achievement of three key milestones: commencement of at least three human clinical trials within twelve months, successful achievement of targets in at least two clinical trials within thirty-six months, and execution of binding commercialization agreements for ibogaine-based products with reputable pharmaceutical partners.
Regulatory Catalyst and Market Opportunity
The acquisition follows President Donald Trump's April 18, 2026 Executive Order titled "Accelerating Medical Treatments for Serious Mental Illness (search)," which directs the FDA and federal agencies to accelerate research, approval pathways and patient access for psychedelic therapies, including psilocybin and ibogaine.
"Today's order will ensure that people suffering from debilitating symptoms might finally have a chance to reclaim their lives," President Trump stated, adding that the initiative would "dramatically accelerate access to new medical research and treatments based on psychedelic drugs."
The White House emphasized that "It is the policy of my Administration to accelerate innovative research models and appropriate drug approvals to increase access to psychedelic drugs that could save lives and reverse the crisis of serious mental illness (search) in America."
Following the Executive Order, the FDA announced accelerated review pathways and priority actions for qualifying psychedelic therapies on April 24, 2026, including psilocybin-based treatments and ibogaine-related programs.
Advanced Clinical Pipeline and Manufacturing Capabilities
Psyga brings seven approved Phase 2a human clinical trials expected to commence patient enrollment in the near future across multiple indications, including mental health disorders (search), neurological conditions (search), trauma-related disorders (search), addiction (search) treatment and additional central nervous system (search) indications. Several programs are fully funded and will be conducted in collaboration with leading academic institutions and medical centers.
The company operates a licensed, GMP-ready pharmaceutical manufacturing facility designed for cultivation, extraction, isolation, formulation and production of pharmaceutical-grade botanical and synthetic psilocybin, ibogaine and other psychedelic active pharmaceutical ingredients (APIs) in accordance with international pharmaceutical manufacturing standards.
Psyga has developed a proprietary library of more than 180 unique mushroom strains, including differentiated high-potency and bioactive strains, supporting pharmaceutical development, product consistency, future intellectual property protection and scalable commercial manufacturing capabilities.
Leadership and Scientific Foundation
Psyga's scientific activities are led by Professor Dedi Meiri, a researcher in natural product drug discovery and head of the Laboratory of Cancer Biology and Cannabinoid Research at the Technion (search) – Israel Institute of Technology. The company maintains collaborations with leading Israeli academic institutions including Technion, Rambam Health Care Campus, Sheba Medical Center and additional research institutions.
"For years, we have worked to build not only a scientific platform, but a true pharmaceutical infrastructure capable of translating psychedelic science into regulated, scalable medical therapies," Professor Meiri commented. "The recent U.S. regulatory developments significantly strengthen the long-term commercial potential of our platform and validate the direction we have been pursuing."
Financial Structure and Strategic Vision
To support the transaction, XTL has secured a commitment for $1.5 million through a private placement to be consummated upon closing, subject to customary conditions including shareholder approval.
"We believe Psyga represents the type of transformational transaction capable of repositioning XTL as a leading publicly traded biotechnology platform in one of the most important emerging therapeutic sectors globally," stated Noam Brand, Chief Executive Officer of XTL. "The combination of clinical assets, manufacturing capabilities and regulatory timing creates a highly differentiated strategic opportunity."
Alexander Rabinovich, Chairman of Psyga, noted that "This transaction creates a rare opportunity to combine a high-value clinical platform with a public market vehicle at precisely the right regulatory moment for the sector."
Following completion, Psyga will operate as a wholly owned subsidiary of XTL, with current Psyga shareholders entitled to designate one representative to XTL's Board of Directors. The transaction requires approval from XTL shareholders and necessary government or third-party approvals.