Creso Pharmaceuticals Ltd makes history as first ASX-listed psychedelics stock

Creso Pharmaceuticals Ltd () (FRA:1X8) has become the ASX’s first psychedelics stock by way of its acquisition of Canadian psychedelic medicine company Halucenex Ltd.

The move capitalises on growing interest in psychedelic medicines, which includes LSD and psilocybin mushrooms, as treatments for a range of mental illnesses such as post-traumatic stress disorder, anxiety and depression.

There’s plenty of science to back psychedelics’ possible use as therapeutics, and the global market opportunity is quite large: has estimated its size at an eye-watering US$100 billion.

So, what is Creso Pharma looking at with its latest investment?

Increasing global interest

Psychedelics are a class of psychoactive substances that contain chemical compounds which can produce changes in perception, mood and cognitive processing, and they can be found both in nature and manufactured in a laboratory.

They have had something of a marketing problem, with many associating their use with the countercultural explosion of the 1960s.

But scientists have known about their therapeutic potential for a long time, and recent studies have shown their potential in treating depression, anxiety, substance addiction, PTSD and obsessive compulsive disorder.

Regulator and public acceptance of psychedelics’ therapeutic potential is on the rise – the US Food & Drug Administration deemed psilocybin-assisted psychotherapy as a ‘Breakthrough Therapy’ in late 2019 and expanded access to MDMA – a psychoactive drug more commonly known as ecstasy – to PTSD patients in clinical trials.

The mental health problem

Currently, mental illnesses are treated by a combination of therapists, support groups and medication, but there are worldwide issues and limitations to this model of treatment.

Available treatments, according to research, often have limited effectiveness and high barriers to entry thanks to both cost and accessibility.

Patients with mental illnesses can often present with treatment-resistant or medication-resistant symptoms, which further exacerbates the issue.

It’s also a problem on the rise: in 2017, 340 million people were diagnosed with mental health disorders globally, and the World Health Organisation estimates there are more than 264 million people across the world suffering from depression.

The COVID-19 pandemic has also accelerated the rate and impact of mental health disorders, with the virus and its associated lockdowns and restrictions driving increased cases of loneliness, anxiety and depression.

Creso and new subsidiary Halucenex plan to solve the problem with psychedelic-assisted psychotherapy.

Psychedelic-assisted psychotherapy

Halucenex is focused on delivering and developing evidence-based products for the treatment of treatment-resistant depression and other detrimental mental illnesses.

It is currently focused on progressing clinical trials to research the efficacy of psilocybin to treat and alleviate treatment-resistant depression in individuals suffering from PTSD and other mental illnesses.

The company operates at a 6,000 square foot medical treatment facility in Nova Scotia, Canada, next to the Hants Emergency Hospital, with a controlled substances laboratory and 18 treatment rooms for psychedelic-assisted psychotherapy.

On receipt of its pending Controlled Drugs and Substances Dealer’s License, Halucenex will apply to commence a Phase 2 clinical trial.

This License will allow Halucenex to possess and conduct research and development and clinical studies on psychedelic substances including LSD, psilocybin and MDMA.

WATCH: Bruce Linton and Bill Fleming explain the significance of the acquisition

Creso Pharma strategic advisor Bruce Linton, formerly of cannabis giant Canopy Growth Corp (), said Creso had the expertise and resources to capitalise on Halucenex’s…