The psychedelic space is now under consolidation, as ATAI today has announced LLY to Acquire ATAI, for up to $3.8 billion consideration. This post is regarding Helus Pharma (HELP), and the prospects of them being acquired in the future.
Helus's (HELP) main asset is HLP003, which is a deuterated form of psilocybin in phase 3 clinical trials for adjunctive MDD. The top line readout for the 1st phase 3 APPROACH is scheduled to be released by the end of 2026. The second phase 3 EMBRACE is scheduled to complete in 2027, and the company will seek FDA approval once completing.
There are a number of larger companies already approved for adjunctive MDD that might find interest in obtaining Helus's asset HLP003, as the patent runs until 2041.
Here is a list in any order of the larger companies already approved for aMDD which might see value in obtaining a quick acting psychedelic drug, with a long patent runway of 2041.
AbbVie: Drug Vraylar is approved for aMDD with patent expiring in 2030. Vraylar is a valuable asset for AbbVie and is producing total annual revenue of $3.6 billion for the company. Revenue is not broken out per indication as Vraylar has been approved for adjunctive MDD, Bi-Polar Depression and Schizophrenia. The company has already expressed an interest in the psychedelic field, as they previously purchased Gilgamesh Pharmaceuticals psychedelic drug compound Bretisilocin here, Gilgamesh-Pharmaceutical.
Johnson & Johnson: January 13th 2025 is the date that J&J made the acquisition of Intra-Cellular. After that acquisition, lead Intra-Cellular drug Caplyta was approved for aMDD in November 2025. The patent expiration for composition of matter expires in 2028, with additional patents extending out to 2034 and 2040.
Otsuka/Lundbeck: Rexulti has been approved for aMDD since 7/10/2015, with patent expiring in 2026.
Definium Therapeutics: DFTX is a mid-cap psychedelic stock with a $6.2 billion market cap, and looks like the best bet to go it alone in the psychedelic space, as they have substantiated clinical data for GAD, and MDD with an abundance of cash on hand. Adding a potential approval of adjunctive MDD to their offering could make them a psychedelic powerhouse. Helus also has in their pipeline HLP004 for GAD, which might also appeal to Definium by eliminating competition from their main asset DT120, or potentially modifying clinical development of HLP004, to bring a second GAD option to patients.
I would expect AbbVie and Definium Therapeutics, to be most interested in Helus Pharma as a potential buyout. The patent for Vraylar is expiring in 2030, which means generics can proceed with gaining access to selling a generic version. AbbVie may start seeking revenue replacement for the future patent cliff.
An acquisition of Helus Pharma would not be too complicated, as the company is small with 60 million shares outstanding, additional warrants outstanding, and little debt.
It will be interesting to see how this sector plays out over the next year. Chart below of the five major psychedelic stocks and their year-to-date performance. Thank you for reading.
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