XPhyto Therapeutics Corp (CSE:XPHY) (OTCMKTS:XPHYF) (FRA:4XT) said Tuesday that its German subsidiary Vektor Pharma TF GmbH will start to develop a process to manufacture psilocybin as a certified active pharmaceutical ingredient (API).
The subsidiary inked a research agreement with a leading German university that will see Vektor exclusively develop a proprietary process for industrial production of psilocybin, Vancouver-based XPhyto told investors.
In a statement, XPhyto said it is currently focused on securing industrial-scale production of psychedelic APIs and standardizing drug formulations. A biotechnology production program started last month and is expected to finish around September 2021.
The firm said it had identified multiple psychedelic compounds that could be effective in treating mental health conditions.
"Psychedelic agents are a promising new class of therapeutic drug,” XPhyto CEO Hugh Rogers told shareholders.
“We see a natural opportunity to apply XPhyto's drug formulation expertise and Vektor's proven drug delivery platforms to these emerging APIs. Our goal is the development of precise and predictable psychedelic drug formulations for clinical study and therapeutic use."
Psilocybin was recently designated as a "breakthrough therapy" for the treatment of severe and treatment-resistant depression by the US Food and Drug Administration. Allied Market Research estimates the global antidepressant drugs market could reach nearly US$16 billion by 2023, with an estimated compound annual growth rate of 2.1% from 2017 to 2023.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas