At time of writing, the share price of Incannex Healthcare Ltd [ASX:IHL] is up more than 20%, trading at 17.5 cents.
You can see the sharp rise in the IHL share price on the chart below:
Source: Tradingview.com
As the company continues to transform its model, it announced a new clinical trial involving psilocybin.
Key points from IHL announcement
It’s a big change for a company that used to make dental products, and here are the details from the announcement.
- 72 patients, Australia’s largest psychedelic R&D program
- The treatment to be delivered at BrainPark, which is based at Monash University’s Turner Institute for Brain and Mental Health
- Planning on being FDA compliant
- Targeting Generalised Anxiety Disorder
And here’s how the trial will work:
‘The trial will include the development of a substantive specialist training program to equip trial therapists in the safe and effective use of psilocybin-assisted psychotherapy to treat GAD. Central to this treatment approach is the combination of psilocybin and psychotherapy, with participants receiving specialised forms of psychotherapeutic support before, during and after each psilocybin session.’
Outlook for IHL share price
These kind of dramatic transformations in business model are relatively rare and sometimes take a significant amount of time to execute.
IHL also posted record cash sales receipts in the September quarter, which relative to the current market cap are small, coming in at $695,000.
But the simple fact they were able to completely change what their primary business is, is still impressive.
With an FDA Breakthrough Designation already in place for two other psilocybin research programs focused on depression, it will be interesting to monitor the progress of IHL’s anxiety-focused study.
In the coming days as excitement wanes following a steep run-up, a retracement may occur.
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Regards,
Lachlann Tierney,
For Money Morning
