SEED Innovations Ltd (AIM:SEED, OTC:FFRIF) has noted a statement from its investee company, Little Green Pharma, in which it and its own psychedelics subsidiary Reset Mind Sciences welcomed the change in the classification of psilocybin and MDMA in Australia.
As part of the decision by the Therapeutic Goods Administration (TGA), an Australian government agency, psilocybin and MDMA may be prescribed by authorised psychiatrists.
According to a statement, Australia now becomes the first market in the world to recognise psychedelics as medicine, paving the way for the use of psilocybin, a fungi psychedelic, to treat resistant depression and MDMA to treat PTSD from 1 July 2023.
The decision to reclassify, which came as a surprise according to the statement, “uniquely positions Reset compared to other psychedelic companies in Australia.”
This is because it can cultivate and supply psilocybin, while its impending clinical trial should allow Reset to validate its treatment protocols.
As a result, these developments allow Reset to accelerate and implement its commercialisation plans earlier than expected.
“There is a significant body of research emerging in Australia and globally for the use of psychedelics to treat mental health conditions and this decision allows the use of these drugs for the mental health conditions that have demonstrated the most potential in the research,” said Shaun Duffy, chief executive of Reset Minds in the statement.
SEED Innovations owns 2.8%, or 7.3mln shares, in Little Green.
The news helped boost Seed Innovations' shares 6.5% higher to 2.45p in late Monday trading.