Adam JacksonAustralian biotech firm Tryptamine Therapeutics Limited (ASX: TYP) secured A$6 million in new funding through a strategic placement.
The placement, priced at A$0.02 per share, was backed by cornerstone investors that included Merchant Biotech Fund and biotech investor Daniel Tillett, who will join the company’s board as a non-executive director, the company said in an ASX announcement Tuesday.
The raise follows multiple clinical milestones for Tryptamine’s lead candidate, TRP-8803, an IV-infused psilocin treatment. Recent Phase 1b studies showed the drug was safe in healthy volunteers, according to the company. Tryptamine asserts that the drug has shown “significant advantages over oral psilocybin dosing.”
“This placement was heavily bid and highlights the significant near-term opportunity that TYP has as a leading psychedelic drug developer and the potential value which can be unlocked on this journey,” Mark Davies, non-executive chairman, said in the release.
The fresh capital will fund additional clinical trials utilizing TRP-8803, with planned commencement in early 2025. Earlier trials of the company’s oral psilocybin compound TRP-8802 demonstrated “clinically meaningful improvements” in treating conditions like binge eating disorder and fibromyalgia.
The company reported a A$6.1 million loss for the 10 months ending June 30 and no operating revenue. It held A$5.4 million cash and expects a A$1.1 million research and development tax credit from the Australian government.
Shares will be issued in two tranches, with the second requiring shareholder approval in January 2025. The financing follows Tryptamine’s reverse merger and ASX relisting in May, when it acquired Canadian firm Tryp Therapeutics.
Tryptamine is also running Phase 2a trials of its oral psilocybin compound TRP-8802 at Massachusetts General Hospital, the facility’s first psilocybin study.
“With these funds raised, Tryp is now well positioned with added financial flexibility to execute on the next phase of our clinical trial program,” CEO Jason Carroll said.
Trading of the firm’s shares were halted on Monday ahead of the formal announcement, but activity resumed Wednesday.
The raise stands out in a quiet period for the sector. While psychedelics companies raised US$475 million total in the past year, according to data from Viridian Capital Advisors, individual deals have become scarce as investors grow selective.
