- Jazz Pharmaceuticals’ acquisition of GW Pharma for $7.2 billion in February 2021 shows the massive potential of the drug development industry from naturally-derived compounds
- Tryp Therapeutics is following in the footsteps of GW with its innovative drug pipeline and the development of psilocybin-based compounds for the treatment of diseases with high unmet medical needs
- It is one of only a handful of companies moving into Phase 2a clinical trials with a psychedelic compound, and seeks to duplicate the success of GW
As of 2020, the global biotech sector was valued at $753 billion. It is further projected to grow at a compound annual growth rate of 16% between 2021 and 2028 (https://ibn.fm/zidIe). Two key sub-sectors show great promise: cannabis and psychedelics, which both have significant potential with drug development activities. This value is further evidenced by the recent growth in venture capital investment in these industries and the success of the industry pioneer, GW Pharma, which was acquired by Jazz Pharmaceuticals plc (NASDAQ: JAZZ) for $7.2 billion in February 2021 (https://ibn.fm/ia4Du).
Between 2019 and 2020, venture capital investment in this sector grew from $100 million to $346 million. So far in 2021, the sector has raised over $329 million. Additionally, Jazz Pharmaceutical’s acquisition of GW Pharma serves as validation of a sector that has tremendous potential for growth while addressing conditions with few existing treatment options (https://ibn.fm/MwYsX).
Like GW Pharma’s successful approach with cannabis-derived compounds, Tryp Therapeutics (CSE: TRYP) (OTCQB: TRYPF) is driving significant innovation with its drug development pipeline using psilocybin-based compounds for the treatment of diseases with high unmet medical needs through accelerated regulatory pathways.
Tryp’s Psilocybin-for-Neuropsychiatric Disorders (“PFN”) program is focused on developing treatments for chronic pain indications including fibromyalgia, phantom limb pain, and complex regional pain syndrome. The company is also preparing to initiate a Phase 2a clinical trial for eating disorders such as binge eating and hypothalamic obesity.
With the growing popularity and proliferation of psychedelics, many companies are pursuing therapeutic indications with the compounds. However, very few have initiated Phase 2a studies. Tryp Therapeutics is one of the few companies that will have initiated multiple Phase 2a clinical studies by the end of 2021.
Looking back at GW Pharma and the strides it made, it is easy to see the similarities between the two enterprises, based upon their strategies and the paths taken so far. GW clearly foresaw the huge potential value of drug development for cannabis-derived compounds. Tryp is pursuing a similar path, but with psychedelic-derived compounds.
The investment from GW paid off with the FDA approval of the first-ever cannabis-based drug in June 2018 (https://ibn.fm/36UME). Its premier product, Epidiolex (cannabidiol), designed for controlling seizures in rare forms of epilepsy, generated over $500 million in sales in 2020 alone. Experts project that it could surpass $1 billion soon (https://ibn.fm/K5axF).
GW’s FDA drug approval marked a huge milestone, not just for GW Pharma but also for other companies in the evolving biotech space. Tryp is capitalizing on this momentum and the path outlined by GW to create its own success with its PFN program.
For more information, visit the company’s website at www.TrypTherapeutics.com.
NOTE TO INVESTORS: The latest news and updates relating to TRYPF are available in the company’s newsroom at https://ibn.fm/TRYPF
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