A decade after its founding as a wholly-owned subsidiary of the Multidisciplinary Association for Psychedelic Studies (MAPS),lykos Public Benefit Corporation has triumphantly secured over $100 million in a Series A private stock sale. This immense infusion of funds will underpin the final stages of its application for regulatory approval to vend MDMA, better known as ecstasy, as a bona fide treatment for post-traumatic stress disorder (PTSD).
Lykos has cultivated the sole psychedelic-assisted therapy research program to have successfully completed not one but two fruitful Phase 3 studies and dutifully submitted a New Drug Application to the FDA.
In addition to the Series A financing, orchestrated by Helena – the foundation bolstered by hedge-fund manager Joe Samberg – the entity will rechristen itself as Lykos Therapeutics. This rebranding signals a profound transformation that beckons the potential for pioneering breakthroughs in psychiatric treatment.
“We are profoundly grateful to partner with Protik Basu and the rest of the Helena team of mission-aligned investors who understand our prioritization of public benefit and deeply care about humanitarian causes,” Rick Doblin, Ph.D., MAPS founder and president, articulated in a company press release on Friday. “Together, we can uphold our commitment to the trial participants, therapists, scientists, other partners and collaborators, and donors who, over nearly four decades, have dedicated themselves to researching novel investigational therapies for PTSD for public benefit.” These words underscore the unwavering dedication to a noble cause and the profound impact a collective pursuit of scientific progress can yield.
Furthermore, Doblin expounded that, in symbiosis with Helena, Lykos will evolve from a research-focused nonprofit company into a public benefit corporation with mission-aligned investors, all laser-focused on FDA approval and insurance coverage of MDMA-assisted therapy for patients grappling with PTSD.
Amidst this epochal investment surge, it becomes abundantly clear that interest in psychedelic treatments for a multitude of vexing mental maladies, resistant to conventional pharmacotherapeutics, has aggressively spiked, with several enterprises fiercely vying to emerge as pioneers in the quest to tame the enigmatic realm of psychiatric healing.
Atai Life Sciences (ATAI) has made waves by announcing a bold $50 million investment in Beckley Psytech, a U.K.-based entity ardently pioneering a fast-acting psychedelic medication for depression. This assertion of Atai’s commitment to revolutionary breakthroughs in psychiatric treatment is mirrored by Small Pharma (DMTTF), a U.K.-based purveyor of rapid-acting psychedelics, which was recently gobbled up by Canadian clinical-stage biotech company Cybin Inc. (CYBN) in a sweeping all-stock acquisition maneuver last August.
Striding alongside these formidable contenders, Compass Pathways (CMPS), another major player in the labyrinthine realm of psychedelic therapeutics, has astutely raised up to $285 million through a strategic stock-and-warrant sale to a venerable cadre of Wall Street’s finest, including TCG Crossover Management and Citadel Advisors. This massive infusion of capital is designed to fuel Compass’ clinical tours de force utilizing psilocybin, the pivotal active ingredient in magic mushrooms, to combat the debilitating scourge of depression until the waning months of 2025. It is important to note that Atai also holds a partial stake in Compass Pathways, further cementing the orientation of these entities towards lifting the veil on the healing potential of psychedelic remedies.
Despite the lofty aspirations surrounding the game-changing potential of psychedelics to alleviate the suffering of untold millions of patients, developers find themselves imperiled by the formidable hurdle of navigating through the murky, treacherous waters of the expensive and protracted regulatory approval process. This nettlesome challenge often compels burgeoning startups to issue stock at a juncture when valuations in the biopharmaceutical arena are, on the whole, rather tepid.