After Adastra’s cocaine story, let us introduce you PharmAla Biotech (CSE: MDMA) and its MDMA products. The company that develops its clinical-grade LaNeo MDMD and novel MDXX compounds sees its market cap increase. The company penetrates the Australian market thanks to a sales partnership through Reset Mind Sciences and the ASX-listed Little Green Pharma subsidiary. The company’s market cap is significantly low, offering the opportunity to realize solid gains in the long term. 

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Market Overview

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A crisis in psychiatric medicine has been spurred on by the exponential increase in the prevalence of mental health diseases and the failure of new drug development to keep up. The use of MDMA, psilocybin, and LSD as a part of higher psychotherapy programs is known as psychedelic drug-assisted psychotherapy, and it is a revolutionary innovation. The adoption of psychedelic medications is driven by a significant unmet medical need, causing the market for these products to expand at a robust pace of 14.5% CAGR over the projection period, from $3.21B in 2021 to $6.33B in 2026. In Australia, the Australian Therapeutic Goods Administration (TGA) allowed specially-licensed psychiatrists to prescribe MDMA and Psilocybin. 

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Why Using MDMA 

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By lowering defensiveness and anxiety, boosting relaxation, and elevating mood, MDMA can support psychotherapy. It may help strengthen the relationship between the patient and the therapist. Like any other drug used to treat mental health, MDMA for clinical use is prepared to a pharmaceutical standard. A qualified healthcare expert administers the dosage during a therapy session in a controlled and safe environment, and its strength and purity are known.

Company Overview

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PharmAla develops, thanks to its best-in-class laboratories across Canada, its LaNeo MDMA solution and other MDXX substances. The first publicly traded company to produce clinical-grade MDMA was established to develop new medications in the same class and address the global shortage of generic, pharmaceutical-grade MDMA to permit clinical studies. According to the company's research and development division, the lead drug candidate for PharmAla, ALA-002, has undergone proof-of-concept testing. The company marked several milestones, highlighted by the exclusive supply partner agreement Awakn Life Sciences gave. This results from months of sideways work between the Awakn and PharmAla teams. Another company decided to make this move, Revive Therapeutics. Again, the PharmAla team is experienced and reliable, so the company will rely on PharmAla to ensure clinical development plans with Revive’s MDMA microneedle patch for mental health and abuse disorders. 

About Australia, PharmAla commenced completing sales of its pharmaceutical-grade psilocybin with Reset Mind Sciences and a subsidiary of the ASX-listed company Little Green Pharma. Thanks to the recent approval in Australia, interest emanated from Australian companies with the company’s psilocybin supply. With this door opened by the government, PharmAla hopes it will be the beginning of a promising partnership with Mindest.

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Nick Kadysh is the CEO and founder of the company. Through their decade of experience as a public affairs and regulatory expert, Nick has held noteworthy leadership positions in the government relations and regulatory departments of several significant businesses, including those at JUUL Labs as Head of Corporate Affairs, General Electric Canada as Government Affairs & Public Policy Leader, and Red Bull Canada as Director of Public Affairs.

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Share Structure / Financials

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For the quarter ending November 30, the company had $730k in cash for no debt. The company doesn’t have huge expenses, representing $288k for the period or only $96k per month. 82.9M shares are issued and outstanding, added to 7.8M options at $0.08 and 6.7M warrants at $0.05 that could bring, if all exercised, $338k to PharmAla. For this financial report, there wasn’t the line “Revenues” yet. This section should appear in the following financial statements as the company completed its first sale into the growing Australian market. It will be interesting to analyze what the first sales represent in revenue.

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“Since the recent approval of psilocybin and MDMA as prescription medicines in Australia, we have seen great interest from Australian companies in our psilocybin supply. Given the regulatory developments in Australia, we expect this to be the beginning of a fruitful partnership between Mindset and PharmAla thanks to the combined strengths of our novel synthesis processes and sales infrastructure.”

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MDMA.CN gained momentum since January 11, 2022, and now the company’s stock price is currently at its 52-week high, topping $0.20 (March 9, 2023). Again, with sales ramping up, we should see the steady growth continuing. Volume picks up some steam too. While the average volume is already solid (1.1M), this data augmented by 345% on March 9, topping 4.9M shares traded in the session. 

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Bottom Line

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PharmAla Biotech (CSE: MDMA) totally deserves to have more attention and exposure thanks to many positive catalysts. Now investors had the time to get to know more about the company, and hearing about Australia opening its arms for MDMA is simply lovely. The stock price is on good upside, and new exclusive partner agreements or sales will be the cherry on the cake.

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