As energy continues to steal the market spotlight, Incannex Healthcare Ltd [ASX:IHL] is enduring a mixed day of trading.
After flying out of the gates at the market open, up 5.5%, the share price has reversed. Now, at the time of writing, the stock is down 0.68% but climbing once more.
So what is behind this volatile trading day?
Well, Incannex has announced a new agreement with Monash University. One that will see this experimental healthcare company test the merits of psychedelic drugs and virtual reality to treat people…
An unusual type of therapy
If you’re unfamiliar with Incannex, then don’t confuse them with your average pharmaceutical company. Because what started out as a relatively ordinary pot stock, has quickly morphed into something much more.
Like I said, Incannex is now hoping to capitalise upon the emerging science of psychedelic treatment. Using an unspecified substance to try to treat patients with severe anxiety disorders.
What makes this agreement unique to what we’ve previously heard from the company is the addition of virtual reality, or VR, technology. Stimulus that management is clearly hoping will provide even greater therapeutic benefits than just the psychedelic medication alone.
The VR application that Incannex will be using in their investigation is known as BrainPark. A piece of software that was developed by Monash’s Turner Institute for Brain and Mental Health.
On top of this, the research being undertaken will be conducted by Monash as well. Dr Paul Liknaitzky, Head of the Turner Institute, will be leading the study. Overseeing the treatment process and potential of this highly experimental treatment.
In short, it is certainly an interesting endeavour, as CEO and managing director of Incannex, Joel Latham, notes:
‘We’re delighted to have commenced this exciting project and to have expanded our partnership with Monash. The combination of psychedelic compounds with an evidence-based VR therapy is a leading edge in the field of mental health treatments. We look forward to providing more detail about the project in due course when clinical trial planning has been finalised.’
What’s next for Incannex?
Needless to say, as with most research, the outcome will depend on the data.
For that reason, shareholders will no doubt be hoping for positive updates in future. After all, if this type of therapy shows any signs of breakthrough potential, it could be transformative.
However, given the nature of it too, it may certainly take some convincing. I’m sure plenty of traditional medical practitioners will be somewhat skeptical of these methods. Especially pairing two highly experimental concepts — psychedelics and VR — together.
Time will tell if Incannex has made the right move though…
One thing is for sure, early investors have enjoyed huge returns. Because Incannex doesn’t have a lot to show (yet), their potential has attracted a lot of interest. Something that is to be expected from such a forward-thinking business.
As such, it shows how savvy individuals can profit from merely prospective small caps. Something that our two exponential experts — Ryan Dinse and Izaac Ronay — are well aware of. Because when it comes to VR, they know that the sky is the limit.
Together, they’ve even prepared an entire deep dive into the metaverse.
A look at what is possible, what is coming, and how you could even profit from it. Check it out for yourself, in full, right here.
Because if thought psychedelics and VR is a crazy business idea, you’re only just scratching the surface…
For Money Morning