Mydecine - Mental health solutions advancing
Mydecine Innovations Group is a biotech and life sciences company developing and commercialising new therapies for mental health and other conditions. In recent months the company has achieved further progress in maturing its intellectual property (IP) portfolio and adding new proprietary compounds. We present a brief review of the main developments:
The most important feature, in our view, has been the further advancement of Mydecine’s programme with drugs derived from the psychedelic compound psilocybin for application in smoking cessation therapies. During the third quarter (Q3) the company announced a five-year research agreement with Johns Hopkins University School of Medicine, covering nicotine addiction and other indications. Also in conjunction with Johns Hopkins, the company expects to launch a seamless Phase 2/3 clinical trial for smoking cessation in Q1 2022 led by Dr Matthew Johnson, using Mydecine’s proprietary MYCO-001 formulation from psilocybin. Dr Johnson will also launch a multi-site NIDA (National Institute on Drug Abuse) grant-funded smoking cessation study using MYCO-001, which represents the first time in over 50 years that the US government has funded a study using a psychedelic compound for therapeutics.
Aside from MYCO-001, Mydecine has achieved significant milestones in other drug developments and investigative research. The company has filed its final patent application for its MYCO-003 formulation for the treatment of anxiety and Post-Traumatic Stress Disorder, and also a patent application covering new formulations which apply nanoemulsion technology to traditional medicines. Mydecine has also filed a patent application covering multiple psilocin analogues. These address the delivery control and shelf stabilisation issues of psilocin, which is the active metabolite of psilocybin. Finally, Mydecine has reported the successful synthesis of a novel tryptamine which improves the pharmaceutical properties of psilocybin. We argue that the expanding IP base demonstrates the effectiveness of Mydecine’s AI-enabled drug discovery programme.
Also, during the last six months, the company has launched its Mindleap 2.0 platform. This is a digital mental health platform that can potentially be used for delivering integrative therapies applying Mydecine’s proprietary drugs, making psychedelic-assisted therapies a more scalable offering. Mindleap can also be used in conventional mental health therapies, driving nearer-term revenue potential. The platform has now reached 33,000 downloads and continues to grow. Revenues from Mindleap drive our 2022 and 2023 revenues forecasts.
Progress during 2021
We note there has been significant pressure on stocks in the psychedelics space in the last six months. We believe this reflects a degree of investor fatigue, with many companies in the space having very long pathways to revenue generation, and sometimes weak intellectual property protection. By contrast, we note that Mydecine has significant revenue potential from Mindleap in the 2022-2023 timeframe, and has a robust IP protection framework around its drug pipeline. We argue that the current weakness in the Mydecine stock price represents a buying opportunity.
Investment conclusion
Year end Dec 31 · 2020 · 2021 · 2022 · 2023
Revenue (CA$-000's) · 59 · 22 · 4,010 · 72,230
EPS (CAD$) · (0.24) · (0.11) · (0.05) · 0.00
Financial forecasts
Income Statement
Source: Proactive Research
Balance Sheet
Source: Proactive Research
Cash Flow
Source: Proactive Research