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Numinus to Acquire Novamind in Significant Psychedelic Therapy and Research Deal
Numinus Wellness has entered into an agreement to acquire Novamind in a $26.2 million ($20.77 million US) deal announced by the 2 companies on Tuesday morning.
The deal creates a network of 13 wellness clinics across the US and Canada that will offer psychedelic treatments for mental health conditions, including post-traumatic stress disorder (PTSD), COVID-19 burnout, depression, addiction, and eating disorders. Services will include ketamine-assisted psychotherapy (KAP), esketamine, transcranial magnetic stimulation (TMS), psychotherapy, group therapy, medication management, psychedelic palliative care, and neurological care.
The companies also noted in a release that Novamind’s US Drug Enforcement Administration Schedule 1 licenses for psilocybin research will complement Numinus’ Health Canada Controlled Drugs & Substances license to possess, produce, assemble, sell, export, deliver, research, and test a range of psychedelic drugs and botanical materials.
The Numinus executive team and board of directors will remain in place, with the company to be led by CEO Payton Nyquvest. Novamind personnel have entered into employment agreements “that will become effective on closing, and/or will enter into non-competition, non-solicitation and standstill agreements on closing,” according to a news release.
“The Novamind acquisition presents a transformational opportunity for Numinus to launch a strong US platform through eight established, reputable, efficiently operating and revenue-producing clinics,” Nyquvest said in the release. “We prioritize working with the best partners in this industry and Novamind's US market presence, complementary client programming and respected clinical research capabilities allow us to accelerate our strategic growth plans and broaden access to healing and wellness.”
Nyquvest added that the company expects the acquisition of Novamind to grow Numinus’ annual revenue to more than 5 times its current levels.
The combined organization will operate 4 clinical research sites and a bioanalytical laboratory. Its ongoing psychedelic medicine clinical trials include:
- A single-arm, open-label, compassionate access trial for MDMA-assisted therapy for patients with PTSD that is being hosted in collaboration with MAPS Public Benefit Corporation
- A Phase II clinical trial sponsored by the Usona Institute that is investigating the use of psilocybin to treat major depressive disorder
- An open-label, compassionate access trial of psilocybin-assisted psychotherapy for substance use disorders
- A Phase IIb randomized clinical trial sponsored by MindMed investigating the use of LSD to treat generalized anxiety disorder in adults
- A Phase I randomized clinical trial being conducted in collaboration with the University of Utah to study the safety and efficacy of KAP combined with mindfulness-oriented recovery enhancement therapy to treat adults with opioid use disorder
The arrangement between Numinus and Novamind has been unanimously approved by each company’s board of directors, and both organizations anticipate convening special meetings for shareholders regarding the transaction in June.
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