In a quick reflection on the state of the industry to start the conversation off, the CEO said that while from a retail investor’s perspective, the market might seem tepid, there’s been “no drop-off in enthusiasm or interest in the space” from institutions.
“There’s been a really necessary consolidation and pullback, and I think frankly the timing of it has been necessary. Things got really hyped very quickly, and I think a little breath of reality is a good thing,” he said, suggesting that the space could be positioned for another upswing this winter.
Psychedelics Lab Will Get An Upgrade
Earlier this month, Numinus announced that it had submitted a dealer’s license application to Health Canada for the upgrade and expansion of its psychedelics research facility. The upgrade, set to be completed by next summer, will add another 7,500 square feet to Numinus Bioscience, increasing its capacity to supply clinical grade materials and provide access to qualified research facilities.
“We’ve talked a lot about our psilocybin extraction and some of what we’re starting to see from some of the in-house research,” Nyquvest said. While he couldn’t provide specifics, he made it clear that the company “wouldn’t be expanding if we didn’t see a reason for it.”
Now that the company has begun clinical trials and a significant amount of money has been raised, he said, the upgraded facility will also allow the team to build on its research.
The Role of Big Pharma
While some previous TDR interviewees have suggested that Big Pharma’s role in mainstreaming psychedelics could be significant, Nyquvest pointed out that there are elements of the space that don’t fit in the pharmaceutical industry’s wheelhouse—things like psychedelic-assisted therapy and retreats.
“[This] is a very service heavy space,” he said. “When we speak more broadly about new ways of treating mental health, there’s great technologies and tools to be able to support practitioners and provide people with opportunities to work on their mental health while they’re at home—there’s lots of room for disruption in the space.”
While Big Pharma might search for an ‘in’ through something like microdosing, Nyquvest suggested the approach would likely be much broader than the emerging paradigms of care in mental health.
First Bank Coverage
In September, Eight Capital launched coverage on a handful of companies in the psychedelic space, including Numinus, with a $1.10 12-month price target and buy rating. The bank described the company as “a clear leader among the diversified players.”
Nyquvest spoke candidly about the fairness of the coverage, and said that overall, Eight Capital has done a good job of trying to understand the space.
One of the biggest challenges in discussions with analysts, he said, is determining the type of audience an analyst wants to reach: “Are they trying to reach a wellness audience? Are they trying to reach the cannabis converted? Or are they trying to reach more of a biotech-pharma audience?”
Watch the rest of the interview to hear the CEO discuss the current demand for psychedelic-assisted therapy, as well as the company’s decision to close on September 30 in solidarity with Canada’s National Day for Truth and Reconciliation.