Yet another company that uses psychedelics to treat mental illness is moving into the U.S. market.
In June, Vancouver, Canada-based Numinus Wellness (TSX: NUMI) expanded its geographic footprint into the U.S. with its acquisition of Novamind, a mental health company specializing in psychedelic medicine. Novamind is headquartered in Toronto, but its clinics are located in Utah and Arizona.
The roughly $20 million deal also represents a growing interest in the U.S. market for psychedelic-assisted treatment companies.
Numinus provides mental health services and is focused on the emergence of psychedelic assisted psychotherapy. In addition to treatment clinics, the company has research centers. Founded in 2019, the organization now has 17 facilities, which include its research sites, laboratory and the facilities picked up in the acquisition.
Payton Nyquvest, CEO and founder at Numinus, told Behavioral Health Business that he always envisioned expanding into the U.S. market. As the company surveyed potential acquisition targets in the U.S., Nyquvest said that Novmind stood out.
Specifically, the company’s approach to psychedelics and its research capabilities complemented what Numinus was doing in Canada.
“We usually say it’s kind of like a ‘one plus one equals five’ in regards to what it’s done for the organization,” Nyquvest said. “[It] has given us a very strong footing and step into the U.S. market, which we plan on expanding upon.”
The Novamind acquisition also brings with it insurer agreements. Novamind has partnerships with five larger insurers for ketamine assisted psychotherapy.
Why the U.S.
Nyquvest said the U.S. has a strong history of psychedelic research.
For example, five years ago the FDA granted Breakthrough Therapy Designation to use MDMA to treat Post Traumatic Stress Disorder. Since then, the Multidisciplinary Association for the Psychedelic Studies worked with the FDA on a Phase 3 MDMA-Assisted Therapy PTSD. This trial is important because it could be used to support regulatory approval for the medication for the FDA.
Yet, recently, Canada has led the way in psilocybin assisted treatment. Psilocybin is a hallucinogenic compound found in certain types of mushrooms.
While Canada does not have any approved therapeutic products containing psilocybin, the government does have exemption programs. For example, Canada’s Special Access program “permits health care practitioners to request access to drugs that have shown promise in clinical trials or been approved in other countries, but that have not yet been authorized for sale in Canada.”
Additionally, its 56(1) exemptions allow individuals with end-of-life anxiety or depression to get psilocybin on a case-by-case basis.
Now, evolving regulations around psychedelic treatment makes the U.S. a ripe target for Numinus.
Nyquvest noted that in the U.S., regulations are changing on a state-by-state basis. Specifically, Oregon is moving to legalize psilocybin-assisted therapy. Other states are looking to decriminalize psychedelic treatment as well.
“We’re in this unique environment at the moment, where that clinical trial research is being done and underway,” Nyquvest said. “But there are some very large regulatory changes happening, kind of in conjunction with that as well, which is really encouraging.”
This isn’t the only Canadian psychedelic wellness company looking to come south. Delic Holdings Corp. purchased Ketamine Wellness Centers Arizona LLC (KWC) for $10 million in September 2021.
Additionally, digital mental health company Cerebral inked a deal with Toronto-based psychedelic-assisted treatment provider Field Trip Health. The deal allows Cerebral to refer its patients to Field Trip’s services, and in turn, Field Trip to refer its patients to Cerebral.
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