Skip to main content
The Markets by Proactive
Go to Proactive Australia

Investments and investor services

Psych Capital investee company Awakn's shares jump on US addiction market expansion

The US alcohol and substance addiction treatment industry makes more than US$35bn in sales

Shares in Awakn Life Sciences Corp (NEO:AWKN) jumped more than 17% in early trades on news it is expanding into the US addiction market.

The Toronto-based psychedelics company agreed to licence a ketamine therapy to treat alcohol addiction to Revitalist LIfestyle and Wellness clinics across the US for an annual fee and share of treatment revenue.

Psych Capital PLC (AQSE:PSY), which owns a stake in Awakn, estimates the US alcohol and substance addiction treatment industry is significant with 14,000+ treatment facilities across the country generating more than $35bn in revenue.

Psych Capital is a psychedelic healthcare incubator that floated on the the Aquis Exchange PLC (AIM:AQX) in June. Its stake in Awakn is valued at about £240,000, comprising about 426,000 common shares in the company.

The ketamine treatment has completed a second phase a/b trial and the results were published in the American Journal of Psychiatry in January.

In the six months after treatment, 86% of addicts treated with Awakn’s ketamine therapy were abstinent, compared to 2% before the trials started.

The current standard of care only gives a 25% abstinence rate over the same timeframe.

Awakn’s chief executive Anthony Tennyson said: "We look forward to on-boarding more partners in the coming months, and to providing hope to addiction sufferers for whom current treatments are just not working."