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Psychedelic research firm Lucy Scientific Discovery misses IPO target

By Brian Buntz | February 10, 2023

Lucy Scientific DiscoveryLucy Scientific Discovery Inc. (Nasdaq:LSDI), a Canadian firm that focuses on developing and manufacturing psychotropics-based medicines, had its initial public offering (IPO) today. The company had priced 1,875,000 common shares at a public offering price of $4.00 per share.

On its first day of trading, however, the stock dropped by 25.25%, reaching a closing price of $2.99, a decline of 25.25%.

While the company had hoped to raise approximately $7.5 million before accounting for expenses related to the offering, it ultimately generated $5.6 million.

A different type of psychedelic company

Lucy Scientific Discovery differs from other psychedelic companies in that it is a licensed manufacturer of controlled substances. It aims to bolster its presence in the growing psychotropics-based medicines industry with growing contract research, development and manufacturing offerings.

The company has permission to manufacture psilocybin, psilocin, N,N-DMT, mescaline, MDMA, LSD and 4-Bromo-2,5-Dimethoxybenzeneethanamine (2C-B). The latter compound is a novel psychedelic first synthesized by Alexander Shulgin in 1974.

The company has a 25,000-square-foot facility near Victoria, British Columbia, dedicated to R&D and large-scale production of biological raw materials, active pharmaceutical ingredients (APIs) and biopharmaceutical products.

2023 is a mixed bag thus far for psychedelic companies

Thus far, 2023 has been a mixed bag for public psychedelic companies. Compass Pathways (Nasdaq:CMPS) has seen its stock price jump 22.67% to $9.47 since the beginning of the

year. MindMed (Nasdaq:MNMD) shares are up about 50% to $3.79 in the same time frame. Conversely, Atai Life Sciences (Nasdaq:ATAI) has seen its shares dip almost 34% to $1.75.

In 2022, public companies in the psychedelic therapy sector faced difficulties. Compass Pathways and Atai Life Sciences both experienced a 66% decrease in stock prices, while Cybin, Numinus Wellness and Revive Therapeutics saw drops of over 70%. MindMed saw a 90% decrease in its share price and received a notice of potential delisting from the Nasdaq. The overall stock market in 2022 was down, with the Nasdaq Biotechnology Index falling 13%. The Dow Jones U.S. Pharmaceuticals Index, however, increased by 4%.

In the coming years, the FDA may approve 3,4-methylenedioxymethamphetamine (MDMA) for treating post-traumatic stress disorder (PTSD).

Although classic psychedelics, MDMA and ketamine are sometimes referred to as psychedelics.

The agency may also approve the tryptamine psilocybin for depression.


Filed Under: Psychiatric/psychotropic drugs, Uncategorized
Tagged With: Lucy Scientific Discovery
 

About The Author

Brian Buntz

As the pharma and biotech editor at WTWH Media, Brian has almost two decades of experience in B2B media, with a focus on healthcare and technology. While he has long maintained a keen interest in AI, more recently Brian has made making data analysis a central focus, and is exploring tools ranging from NLP and clustering to predictive analytics.

Throughout his 18-year tenure, Brian has covered an array of life science topics, including clinical trials, medical devices, and drug discovery and development. Prior to WTWH, he held the title of content director at Informa, where he focused on topics such as connected devices, cybersecurity, AI and Industry 4.0. A dedicated decade at UBM saw Brian providing in-depth coverage of the medical device sector. Engage with Brian on LinkedIn or drop him an email at bbuntz@wtwhmedia.com.

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