Psychedelics Set To Reach New Highs

Algernon Pharmaceuticals Inc. (AGN:CSE; AGNPF:OTCQB; AGN0:XFRA) has dosed the second cohort in their clinical trial on the application for DMT for stroke victims. Algernon's subsidiary, Algernon NeuroScience, has filed a Form 1-A offering statement under the US Securities and Exchange Commission under a Tier II Regulation A+ offering.

Algernon Pharmaceuticals Inc. is a Canadian-based drug company that focuses on clinical trials and drug applications for unaddressed medical spaces. The CEO is Christopher J. Moreau, who has 15 years of experience at that level, and Dr. Christopher Bryan, Ph.D., is the Vice President of Research and Operations. Dr. Ahmad Khalil, MD, Ph.D., is the Medical Director.

New Step in Clinical Trials and Shares on Offer

Algernon NeuroScience (AGN Neuro), a subsidiary of Algernon Pharmaceuticals, has reached "another important step in our DMT clinical research program," according to Christopher J. Moreau, "the sooner we can finalize the correct dose and the optimum exposure period, the faster we can move into Phase 2 studies where we can test DMT on patients that have suffered a serious brain injury." Algernon has completed dosing the second cohort in the escalating-dose Phase 1 clinical study of an intravenous formulation of AP-188.

Psychedelic substances have seen recent acceptance from state legislative bodies.

DMT is a hallucinogenic tryptamine drug that occurs naturally in some plants and animals or can be synthetic. It is used in the religious practices of indigenous people in the Amazon basin. DMT pamoate and nicotinate are both patented by the company for use with patients who suffered an ischemic stroke. The company also filed patents for other combinations of DMT and conventional stroke treatments.

Christopher J. Moreau, CEO of Algernon, stated, "We believe DMT holds tremendous promise as a drug that could have a significant positive impact on the healing and recovery of brain injury victims on a global scale."

The study is focused on DMT when it is administered as an intravenous bolus followed by a slow infusion over six hours. A study based on this method has never been conducted before. The study will also observe other treatment methods for stroke recovery. After appropriate dosages have been found, the study will dose subjects using six-hour infusions over two weeks.

Algernon NeuroScience also filed a Form 1-A offering statement under a Tier II Regulation A+ offering. Algernon Neuro will sell as much as 37.5% of its common shares. The majority of the company's shares will still be owned by Algernon Pharmaceuticals. The company hopes to raise funds for research and development for its DMT clinical studies, as well as studies on stroke and traumatic brain injury.

Class A common shares will be offered at US$1 per share and require a minimum investment of US$1000. The company is also offering bonus shares at the following prices: US$15,000 for 5% bonus shares, US$25,000 for 10% bonus shares, US$100,000 for 15% bonus shares, or US$250,000 for 20% bonus shares.

The marketing for the offering is focused primarily on on-line and digital communications.

New Legislation on Psychedelics

Psychedelic substances have seen recent acceptance from state legislative bodies. As of January 1, 2023, Oregon has become the first state to legalize psychedelics and plans to set up clinics across the state. Other states, such as Massachusetts, Illinois, and Utah, are also considering bills that would legalize psychedelics, and Virginia is considering legislation that would move psychedelics to a lower schedule, and Arizona has put forth funding for research.

Australia's Therapeutic Goods Administration (TGA) has approved psychedelic substances to be used in medications. Specifically, Australia has approved psilocybin and MDMA for prescription by psychiatrists who are approved by a human research ethics committee under the Authorized Prescriber Scheme. The shift in legislation has come as conventional treatments have been unable to keep pace with the rising rate of mental illness following the pandemic.

Algernon on the Move

According to Clive Maund, Algernon Pharma is a company that bears watching: "Algernon Pharmaceuticals Inc. has two things going for it. One is that it could come out with positive news at any time that could get the stock moving, and the other is that with only 2.3M shares in issue when it does move, it is likely to result in big percentage gains."

According to Clive Maund, Algernon Pharma is a company that bears watching.

Algernon has a number of short-term catalysts to report. The company is engaged in a Phase 1 DMT study for stroke.

The data has yet to be released. Algernon has also established Algernon Neuro Science, a DMT research program. The program has filed a Form 1-A offering statement with the intention of raising US$10 million by offering 37.5% of the company's common shares. These funds will be used for the progression of the program through research, development, and management.

In Q1 of 2023, the company will begin a Phase 1 Study for DMT and stroke. In Q2, the company will file a US FDA IND Filing for chronic cough, a US FDA IND filing (fast track application) for IPF, and a complete manufacture for CKD. In Q3, the company expects to have the Phase 1 DMT data ready and to begin the Phase 1 study for CKD. In Q4, Algernon will begin Phase 2 of the DMT study and begin Phase 2b of the chronic cough study.

Ownership and Share Structure 

Management and directors own approximately 5% of the company. 

Reuters notes that 14.39% of the stock is with institutions.

The largest shareholder is Canada's Alpha North Asset Management, with a 13.15% stake or 1.27 million shares. 3.87% is with strategic investors, and the rest is in retail.

The company reports that it has CA$5 million in the bank as of March 1, 2023, and that its burn rate is CA$80k in net clinical trials and research costs.

According to Market Watch, the company has 19.33 million shares outstanding and trades in the 52-week range between CA$0.1700 and CA$1.1101.

Disclosure:
1) Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: none. She or members of her household are paid by the following companies mentioned in this article: none. His/her company has a financial relationship with the following companies referred to in this article: None. 

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