Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s psychedelics subsidiary Halucenex Life Sciences Inc has been awarded a permit by Health Canada to import one kilogram of psilocybe cubensis to refine extraction and formulation techniques for drug development.
Halucenex will use the permit to import one kilogram of dried Jamaican grown psilocybe cubensis from Grogenex JA Ltd which equates to 20 grams of psilocybin.
Notably, importing psilocybe cubensis will provide Halucenex with sufficient inventory while there is an ongoing bottleneck in supply.
Looking ahead, Halucenex’s planned phase two clinical trial is expected to begin this quarter, with potential to unlock a large market opportunity for Creso Pharma and access to the global PTSD therapeutics sector which is projected to grow to US$10.5 billion in value by 2025.
“Range of potential benefits.”
CEO and managing director William Lay said: “Securing the import permit from Health Canada allows the company to access a supply of dried psilocybe cubensis during a period where there is strong demand and a bottleneck on supply.
“Further, establishing a relationship with Grogenex for the import of psilocybe cubensis will broaden Halucenex’s exposure to different psilocybe cubensis strains for R&D initiatives and we are confident that this will build on our ongoing understanding of how to best leverage the substance for a range of potential benefits.”
Forward plan
Halucenex expects to complete the import of psilocybe cubensis by the end of this month for ongoing R&D initiatives
Further, the company considers entering into future natural psilocybin offtake agreements at the right time, including potentially with Grogenex.
Importing the psilocybe cubensis provides Creso Pharma with the opportunity to establish a relationship with Grogenex that may provide access to Jamaican mushroom genetics and products.
This also has the potential to streamline future import initiatives for the company and secure future additional supply of psilocybe cubensis as required.