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(Alliance News) - Seed Innovations Ltd on Monday touted the implications of a regulation change for its portfolio company, Little Green Pharma Ltd, as Australia stands to become the first market in the world to recognise psychedelics as medicines.
The medical cannabis, health and wellness company said that both Little Green Pharma and its psychedelics-focused subsidiary, Reset Mind Sciences Ltd, welcomed the decision by the Therapeutics Goods Administration in Australia.
The ruling will see psilocybin and MDMA re-classified as medicines. It means that from July 1, authorised psychiatrists will be able to prescribe the former as a therapy for treatment-resistant depression, and the latter for post-traumatic stress disorder, outside a clinical trial environment.
Little Green Pharma noted that the decision came "significantly earlier" than expected by the industry, given the TGA's decision in December 2021 not to re-classify the drugs, and limit use to clinical trials.
It said that the unexpected change uniquely positioned Reset compared to other psychedelic companies in Australia, given both its Schedule 9 licence, authorising it to cultivate and supply psilocybin, and its impending clinical trial.
Reset Mind Sciences is also in the final stages of commissioning construction of a bespoke mushroom cultivation facility, which is expected to be on site at LGP's existing cannabis cultivation facility in the coming weeks.
"We're still working through the full implications of the TGA's decision for our strategy moving forward but suffice to say it's a very positive development for us and will result in an acceleration of our plans," said Reset Chief Executive Officer Shaun Duffy.
Previously, Little Green Pharma had announced its intention to demerge Reset by way of an inspecie distribution of its current ownership to its shareholder base. If approved, eligible Little Green Pharma shareholders would receive a separate direct shareholding in Reset and the opportunity to invest additional funds into it.
"Given this regulatory development and that Reset is on the precipice of becoming operational on both the clinical trial and cultivation fronts, we believe the time is right to move ahead with the demerger of Reset Mind Sciences from Little Green Pharma into a standalone dedicated psychedelics company," added Reset CEO Duffy.
Seed Innovations shares were trading 5.3% higher at 2.42 pence each in London on Monday afternoon.
By Holly Beveridge; Alliance News reporter
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