Revolutionary Advancements in Drug Therapy
A decade after it was founded, MAPS Public Benefit Corporation has secured over $100 million in Series A funding to propel their application for regulatory approval to sell MDMA as a treatment for PTSD. This revolutionary research and treatment development company has incubated the only psychedelic-assisted therapy research program that has completed two successful Phase 3 studies and submitted a New Drug Application to the FDA.
Strategic Business Evolution
In addition to the Series A financing, led by Helena, the foundation funded by hedge-fund manager Joe Samberg, MAPS will change its name to Lykos Therapeutics. This signifies more than a mere change in a moniker; rather, it represents a strategic maneuver to transition from a research-focused nonprofit company to a public benefit corporation with mission-aligned investors. It will lay the groundwork for further FDA approval and insurance coverage of MDMA-assisted therapy for patients with PTSD.
Industry Momentum and Challenges
This impressive investment reflects a surge of interest in psychedelic treatments for various mental illnesses that have been challenging to address with traditional medication. Other companies are also racing to bring these novel therapies to market. For instance, Atai Life Sciences recently announced a $50 million investment in Beckley Psytech, a U.K.-based firm developing a fast-acting psychedelic medication for depression, and Small Pharma, a U.K.-based manufacturer of rapid-acting psychedelics, was acquired by Canadian clinical-stage biotech company Cybin Inc. in an all-stock deal last August.
Compass Pathways, another major player in the field, raised up to $285 million through a stock-and-warrant sale to conduct clinical trials using psilocybin, the active ingredient in magic mushrooms, for treating depression until late 2025. Despite the high hopes for the potential of psychedelics to help millions of patients, developers face the hurdle of navigating the expensive and lengthy regulatory approval process, which often compels startups to sell stock at a time when biopharmaceutical valuations are generally low.
