Tryptamine Therapeutics (ASX:TYP) has kicked off the hunt for 12 patients to take part in a trial using the drug in magic mushrooms to treat binge eating behaviours.
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While the hype around psychedelic medical research is well-known (and well-understood), it frequently remains a practice so wrapped up in red tape that few companies bother attempting it.
Further, the sensational nature of using hallucinogenic drugs to treat anything remains something that people seem to either endorse with gusto or reject with gusto.
But to those who are positive about the whole thing, there is a true belief that psychedelic drugs could revolutionise mental health care broadly – also implying a tantalising value proposition.
Given the very small pool of companies trying it out, the market pays attention to companies like TYP – but its shares on issue (1.4B) remain an impediment for the stock’s uptake by investors. That was reflected in Monday’s trades.
TYP was once something of a niche darling, but liquidity has dropped off in recent history as the stock failed to join a basket of other biotech stocks running hard so far this year.
Of course, biotechs typically only run hard once positive trial results are reported. Early results from this cohort of patients are expected in Q4 of the calendar year.
For now, the company has reported “multiple inbound enquiries” received from patients who have heard of the study, present with binge eating behaviours, and presumably want to try out being injected with the compound psilocin.
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