The Psychedelic Drug Industry Appears To Have A New Sugar Daddy – The Dales Report

A massive multinational drug specialist is making waves in the psychedelic drug industry, writing checks to finance the development of new psychedelic drugs. Though the stock markets decline has somewhat overshadowed this story, it is worth noting. This breakthrough drug develop partnership has significant commercial potential for the company as well as the industry as a whole.

The company in question is Mindset Pharma. Psychedelics investors are wise to take note of this company as it is publicly owned. Shares of Mindset Pharma are traded under the symbols of MSET on the CAN and MSSTF in the United States.

Mindset Pharma has announced a new drug development partnership. The company will ally with McQuades Center for Strategic Research and Development. The partnership is considered prospective at the current moment. Mindset will receive a payment of $5 million upfront. Expenses will be paid to take two of the companys novel molecule families through the initial phase of the clinical trial process.

The announcement is important as Phase I symbolizes a significant accomplishment for Mindset. The novel molecule developers molecules will be tested for both tolerance and safety yet those products will soon be available to pharmaceutical businesses that will develop the drugs through continued research and development.

Reaching the drug development finish line without shareholder dilution is of the utmost importance for the company as well as its public owners. Mindset retains the right of first refusal to partner on results stemming from the pipeline.

The expenses referred to above have the potential to surpass the $30 million CAD mark. This level of funding is a massive financial contribution to a business that as of the current moment has a market cap below $60 million CAD. In plain terms, this deal provides a windfall of cash that will help Mindset capture additional market share.

Those who delve deeper into Mindsets research and development partner in the drug development effort will find the alliance is likely to prove quite meaningful for the entire industry. The McQuade Center for Strategic Research and Development (MSRD) is a key component of the worldwide Otsuka group of pharmaceutical companies.

Otsuka Pharmaceutical is a big pharma business based in Japan. Otsuka recorded revenues in excess of $12 billion across the first two quarters of 21,. In other words, McQuade is financed by a massive drug development specialist with a considerable amount of cash to spend.

Indeed, Otsuka might qualify as a legitimate industry sugar daddy in the psychedelics space. If everything goes as planned, Otsukas financing will propel the likes of Mindset to new heights. Otsukas deep cash reserves have the potential to transform the investment of millions of dollars into billions across posterity. It is particularly important to point out the fact that the mental health industry has not progressed as most assumed. The industry has stalled yet psychedelics provide intriguing promise. If Otsukas brass is right, psychedelics are the future of mental health.

In excess of $300 billion is spent on mental health every single year in the United States. The majority of this money is wasted. However, the market cap of the psychedelic drug industry is less than $3 billion. There is clear upside to this growing industry, especially with the impending infusion of cash provided by the likes of Otsuka.

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The Psychedelic Drug Industry Appears To Have A New Sugar Daddy - The Dales Report