Psyence Acquires Clairvoyant and Phase 2 AUD Asset for $500k

Psyence Biomedical has announced a significant acquisition in the psilocybin-based biotech sector. The company is set to acquire Clairvoyant Therapeutics, a privately-held firm, for $500,000 in shares. Clairvoyant is currently in the midst of a 154-person phase 2b trial for a synthetic psilocybin-based candidate targeting alcohol use disorder (AUD) in both the European Union and Canada. The topline results of this trial are expected to be available by early 2025.

Neil Maresky, the CEO of Psyence, emphasized the strategic value of this acquisition in a September 6 release. He stated that Clairvoyant’s candidate for AUD aligns well with Psyence's own nature-derived psilocybin development program. Psyence itself is preparing for a phase 2b trial of its psilocybin candidate aimed at helping patients adjust to life-limiting cancer diagnoses, a condition known as adjustment disorder. The potential merger between Psyence and Clairvoyant could thus broaden Psyence’s pipeline to include another high-value indication—AUD. This expansion could pave the way for Psyence to transition into a commercial-stage, revenue-generating entity.

Maresky elaborated on the potential benefits of the acquisition, highlighting that the company would gain access to crucial phase 2 data readouts from both trials. If successful, these readouts could position Psyence as a leader in the development of psychedelic-based therapies for various underserved mental health conditions. The acquisition would be a significant step in addressing the need for effective new treatment options in this field.

In addition to the initial $500,000 in shares, Psyence has agreed to potentially make two additional share-based payments of $250,000 each, contingent on meeting specific milestones. Moreover, Psyence has allocated up to $1.8 million to cover Clairvoyant’s liabilities, including clinical trial costs.

The acquisition comes at a time when the landscape for psychedelic-based therapies is rapidly evolving. Psyence and Clairvoyant are not alone in this space; other biotechs are also exploring the potential of psilocybin. For example, Compass Pathways has recently reported successful phase 2 results for a psilocybin-based treatment for post-traumatic stress disorder (PTSD). However, the field has also faced setbacks. This summer, the FDA rejected Lykos Therapeutics’ application to use MDMA to treat PTSD, highlighting the regulatory challenges that still exist for psychedelic-based therapies.

Despite these hurdles, the momentum behind psilocybin and other psychedelic compounds continues to grow. Psyence’s acquisition of Clairvoyant could serve as a catalyst for further advancements in this promising area of medical research. As the company moves forward with its expanded pipeline, it aims to offer new, effective treatment options for mental health disorders that have long been underserved.

This acquisition is not just a business transaction but a strategic move that could potentially transform Psyence into a major player in the psychedelic-based biotech industry. With the combined expertise and resources of both companies, Psyence is well-positioned to make significant strides in the development of groundbreaking treatments for mental health conditions, offering hope to patients and healthcare providers alike.

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