Little Green Pharma’s (ASX:LGP) psychedelics focused subsidiary Reset Mind Sciences Ltd has entered into a Strategic Alliance with Health Insurance Fund of Australia Pty Ltd (HIF).
The aim is to establish a proof-of- concept mental health treatment facility with capability to deliver psychedelic assisted psychotherapy to eligible patients.
The parties will also undertake a concurrent health economics study to provide HIF with the real- world data necessary to inform potential member coverage for this treatment. In addition, the parties have agreed to a period of exclusivity to negotiate joint development of further treatment centres based on the initial concept.
The agreement follows the recent announcement by the TGA to allow psychiatrists, under strictly defined parameters, to prescribe psilocybin for treatment resistant depression
and MDMA for PTSD under the Authorised Prescriber scheme from 1 July 2023. Psychiatrists seeking Authorised Prescriber status will first be required to obtain approval from a Human Research Ethics Committee (HREC) which will require fully documented treatment protocols.
Reset has recently obtained HREC approval for its clinical trial into the use of psilocybin assisted therapy for patients with treatment resistant major depressive disorder. The Strategic Alliance will draw heavily on Reset’s clinical protocols and other key aspects of the trial in the development of the proof-of-concept clinic. The clinic is intended to support psychiatrists that hold Authorised Prescriber designation, with Reset in advanced negotiations for the site of its proof-of-concept mental health treatment facility.
“It is vitally important that any treatment undertaken in Australia under the regime announced by the TGA is done to the highest standards of ethics and professionalism,” Reset CEO, Shaun Duffy, said.
“We believe the significant body of work we have undertaken over the last 18 months, particularly in respect of our clinical trial, is now an important resource to facilitate real world treatment.
“As an industry, we have to think ahead as to how psychedelic treatment will integrate into the broader healthcare system and this agreement with HIF could play a pivotal role in that regard. We commend HIF for their foresight and look forward to a long and productive relationship with them.”
Reset will own and operate the proof-of- concept clinic and HIF will contribute $250,000 towards its initial set up. Reset and HIF will use best endeavours to agree the terms for a subsequent business venture under which they will own and operate one or more mental health care facilities offering psychedelic treatments to patients.
