Shares in Awakn Life Sciences Corp (NEO:AWKN) jumped more than 17% in early trades on news it is expanding into the US addiction market.
The Toronto-based psychedelics company agreed to licence a ketamine therapy to treat alcohol addiction to Revitalist LIfestyle and Wellness clinics across the US for an annual fee and share of treatment revenue.
Psych Capital PLC (AQSE:PSY), which owns a stake in Awakn, estimates the US alcohol and substance addiction treatment industry is significant with 14,000+ treatment facilities across the country generating more than $35bn in revenue.
Psych Capital is a psychedelic healthcare incubator that floated on the the Aquis Exchange PLC (AIM:AQX) in June. Its stake in Awakn is valued at about £240,000, comprising about 426,000 common shares in the company.
The ketamine treatment has completed a second phase a/b trial and the results were published in the American Journal of Psychiatry in January.
In the six months after treatment, 86% of addicts treated with Awakn’s ketamine therapy were abstinent, compared to 2% before the trials started.
The current standard of care only gives a 25% abstinence rate over the same timeframe.
Awakn’s chief executive Anthony Tennyson said: "We look forward to on-boarding more partners in the coming months, and to providing hope to addiction sufferers for whom current treatments are just not working."