In February 2023, Australia became the first country to accept psychedelics, i.e. hallucinogenic drugs, as medicine. It approved the use of MDMA and psilocybin, typically known as mushrooms and ecstasy, for psychiatric help.
Medical cannabis and psychedelics manufacturer Incannex Healthcare (ASX: IHL) wasted no time and announced the launch of the first psychedelic-assisted psychotherapy clinic. Its subsidiary company, Clarion Clinics Group, has entered a lease for riverfront premises in Abbotsford, Melbourne.
The clinic is designed as a commercial-scale prototype with the potential to be scaled up and replicated in other locations. It will be able to treat over 600 patients per year during regular working hours and substantially more in extended-hour operations.
Incannex has ordered an initial supply of psilocybin and MDMA through an arrangement with Pharmala Biotech to facilitate the commencement of clinical operations.
Director for Incannex’s psychedelic clinics business, Mr Peter Widdows, said, “The initial clinic is a pioneering venture that will implement best practices in psychedelic treatment and aims to positively impact the lives of many people suffering with intractable mental health conditions. It alone is a substantial business opportunity and has the potential to expand into a very sizable venture with the subsequent planned roll-out of numerous clinics. Clarion Clinics Group is uniquely placed to be a significant player in this market by entering early, having the treatment model, business model and the best-qualified people in place.”
Incannex is a pharmaceutical development company working on medicinal cannabis and psychedelic medicine therapies for various medical conditions, including sleep apnoea, brain injuries, lung inflammation, rheumatoid arthritis, anxiety, addiction disorders, and pain. It holds 19 patents and 30 pending patent applications.
For its psychedelic clinic, Incannex is collaborating with Australia’s leading clinical psychedelic professionals, who have extensive experience in clinical psychedelic research, treatment, and training. Dr Paul Liknaitzky, Professor Suresh Sundram and Sean O’Carroll have joined the Board of Directors of Clarion Clinics Group Pty Ltd and Clarion Model Clinic Pty Ltd and taken critical executive roles within the business. The venture is being led by long-time Incannex Director Peter Widdows.
Widdows noted that the estimated Australian market for psychedelic-assisted psychotherapy is anticipated to be more than $2 billion annually, with the global market closer to $60 billion. Aware of the popularity and potential of ecstasy and mushrooms, the Company hopes to lead Australia’s legalisation of these drugs in medical practice.
Incannex CEO and Managing Director, Joel Latham, said, “Clarion Clinics will be the first dedicated psychedelic-assisted psychotherapy business in Australia. We’re delighted to be at the forefront of an industry that has the potential to change the lives of thousands of people who have been living with conditions for which there have been no adequate treatment options.”
Through Clarion Clinics Group, Incannex plans to open multiple psychedelic-assisted psychotherapy clinics in Australia and overseas, with the first ‘model’ clinic to open in Melbourne in Q3, 2023, followed by expansion of its clinics to other Australian major centres, based on the development of sound operations at the model clinic.
The fit-out and commissioning of its clinics will commence soon and is expected to be complete in August 2023, facilitating the opening of the first clinic shortly after that. Its inner-North Melbourne clinic will launch by September 2023, setting the stage for the first patient treatments to begin.
Alinda is a Business Reporter for The Sentiment
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