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Little Green Pharma Makes Psychedelic Partnership

22 March 2023 11:03
ASX: LGP

Things continue to heat up for Little Green Pharma, with its psychedelic subsidiary Reset Mind Sciences entering a strategic alliance with the Health Insurance Fund of Australia to develop a proof-of-concept mental health treatment facility with the capability to deliver psychedelic-assisted psychotherapy.

The alliance was formed after the Therapeutic Goods Association made a surprising move by permitting the prescription of MDMA for post-traumatic stress disorder treatment, and psilocybin (also known as magic mushrooms) for depression treatment in medically supervised environments in the early part of last month. Reset received approval for a psilocybin trial shortly thereafter.

Under an exclusivity agreement to negotiate the joint development of additional treatment centres, Reset will own and manage the proof-of-concept clinic, while HIF will provide $250,000 toward its development and initial setup.

The Company said that the partnership will draw heavily on Reset’s clinical protocols and other key aspects of the trial in the
development of the proof-of-concept clinic.

“It is vitally important that any treatment undertaken in Australia under the regime announced by the TGA is done to the highest standards of ethics and professionalism. We believe the significant body of work we have undertaken over the last 18 months, particularly in respect of our clinical trial, is now an important resource to facilitate real-world treatment,” Reset Chief Executive Shaun Duffy said.

“As an industry, we have to think ahead as to how psychedelic treatment will integrate into the broader healthcare system and this agreement with HIF could play a pivotal role in that regard. We commend HIF for their foresight and look forward to a long and productive relationship with them.”

In addition to setting up the clinic, the two parties will collaborate on conducting a health economics study to gather real-world data that HIF requires to make informed decisions about potential member coverage for this treatment, as well as to shape future health insurance coverage in the emerging field of alternative medicine.

HIF have said it believes that Reset is the best-placed company for it to begin its psychedelic treatment journey with.

“The recent announcement by the TGA has brought into focus on the issues of access and affordability of psychedelic treatments. We believe it is vitally important that the health insurance industry is involved from the outset and HIF has always intended to be a first mover in this regard,” HIF Chief Executive Justin James said.

LGP’s Australian Stock Exchange-listed share price was trading at 18c today (9.43 am UTC+ 8 hours).

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