Advancing their research and development for medicinal cannabis applications, Little Green Pharma (ASX: LGP) has joined the global movement for use of psychedelics for treatment of mental illness having secured regulatory approval to supply psilocybin.
The approvals come in the form of a Schedule 9 licence granted by the WA Department of Health which enables Little Green Pharma to supply psilocybin to eligible licence holders.
Psilocybin is the primary substance within magic mushrooms which is known to cause hallucinations and is classified as a Schedule 9 drug. Once ingested, it induces a psychedelic state through its action on the brain’s 5HT-2A serotonin receptors. Its use as a treatment for mental illness was widely popularised in the 1970s with minimal research at the time when there was minimal regulation around its medicinal use.
With advancements in research however, and the global relaxation of regulation around cannabis for medicinal purposes, psychedelics are being explored by international researchers for its treatment properties to address depression, PTSD and anxiety.
Under Little Green Pharma’s program, the company will use psychedelics to assist psychotherapy.
“The field of psychedelics is a logical fit with our long term stated goals of solving real patient problems and transforming their lives,” said Little Green Pharma Managing Director, Fleta Solomon.
“We have developed so much experience over the years through the cannabis industry and we genuinely believe we can now bring that to bear on the development of the psychedelics field in Australia.
“The existing investment in our West Australian cannabis cultivation and manufacturing facility means we can meaningfully enter the field with minimal incremental capital spend.”
Securing the Schedule 9 licence overcomes the biggest hurdle to enter the psychedelics market and with it, Little Green Pharma will cultivate psilocybin mushrooms for use in medical research. This will leverage the Company’s existing cultivation operation in Western Australia where they already cultivate cannabis and manufacture cannabis products that are sold both domestically and internationally.
Driving their entry into the psychedelics market, Little Green Pharma has appointed Shaun Duffy as the CEO of their newly created subsidiary that focuses entirely on psychedelic medicine and its global developments. He will be assisted by Dr Stephen Bright who has joined in an advisory capacity, being a prominent and highly respected voice in the field of psychedelic medicine and a Senior Lecturer in Addiction at Edith Cowan University.
For FY21, Little Green Pharma reported a 219% increase in revenue to $7 million in a major year of growth for the Company which saw its products distributed to Germany, the United Kingdom, France, New Zealand and Brazil. New distribution agreements were also signed for Denmark, Poland and Lithuania.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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