leadf
logo-loader
viewCreso Pharma Ltd
(
ASX:CPHOTCQB:COPHF
)

Creso Pharma surges as target Halucenex is primed to enter large Californian market with psychedelics

Historic shifts in legislation involving psychedelic use in the US could expedite market entry for Creso Pharma and its acquisition target.

Creso Pharma Ltd - Creso Pharma target Halucenex primed to enter Californian market
Laws surrounding psychedelic use in the US are poised to change, priming life sciences companies to offer alternative treatments.

Creso Pharma Ltd (ASX:CPH) (FRA:1X8) has traded higher on news that target acquisition company Halucenex Life Sciences Inc is looking to capitalise on recent regulatory shifts in the Californian healthcare market with its psychedelic products.

Together, the ASX-listed cannabinoid therapy developer and its life sciences acquisition target are looking to accelerate their launch in the US after California’s Senate passed landmark legislation.

With a focus on addressing the US’ current mental health crisis, Senate Bill 519 could open the door for alternative healthcare treatments in the North American market - priming Creso and Halucenex to meet growing demand.

If it becomes law, the bill would legalise the use and possession of psychedelic compounds like psilocybin for adults over 21 years of age and expunge prior criminal offences attached to the substances.

Shares have been as much as 32% higher to A$0.185 intraday while the company's market cap was approximately A$154.3 million at the opening.

“A major development”

Non-executive chairman Adam Blumenthal said: “This is a major development for Creso Pharma and Halucenex and provides a key strategy piece, which will underpin our expansion into the US market.

“Over the recent months, we have made a number of US-focused appointments and Halucenex has secured multiple partnerships and agreements that will allow the company to pursue the US psychedelics market and become a first mover in the sector.

“The board and management team are actively assessing a number of strategies to expedite a US market entry and will leverage our existing partnerships and technical experience in the psychedelics space to unlock further value for shareholders.”

Making moves

To capitalise on the shift in California, Halucenex has teed up discussions with strategic scientific consulting firm and partner HeteroGeneity LLC.

Ultimately, the move could fast-track a development plan to prepare Halucenex’s botanical psilocybin products for the US market once it receives regulatory approvals.

Meanwhile, Creso Pharma will progress opportunities via its US-based personnel — a team that includes the company’s director of US Business Development John Griese and psychedelics entrepreneur Bruce Linton.

Halucenex founder and CEO Bill Fleming said: “The passing of this legislation through the Senate highlights a significant shift in the acceptance of psychedelic compounds as an alternative treatment method to common and debilitating diseases.

“Creso has considerable bench strength which we will leverage, as well as in-country personnel that will be able to progress potential partnership opportunities, regulatory approval processes and future licencing agreements.

“We are very excited to be working with Creso management and our own technical team to delineate strategies which will see the Company become one of the first market movers in what is anticipated to become a considerably large market.”

While there’s no concrete date for a US launch at this stage, Creso and Halucenex intend to capitalise on the legislation shift “in the near-term”.

Quick facts: Creso Pharma Ltd

Follow
ASX:CPH

Price: 0.11 AUD

Market Cap: $132.17 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Creso Pharma subsidiary Mernova granted sales license from Health Canada

Creso Pharma (ASX:CPH) subsidiary Mernova managing director Jack Yu and vice president Isaac Allen joined Steve Darling from Proactive to discuss the granting of their sales license from Health Canada and what it allows them to do. Isaac Allen tells Proactive they are gearing up sales efforts...

on 12/6/20

3 min read