In Canada, the prevalence of depression and mental health disorders has shown a worrying increase. According to data from 2022, over 5 million Canadians, accounting for 18% of the population aged 15 and older. This growing trend underscores the importance of addressing mental health issues at a societal and policy level, with an emphasis on creating accessible and effective mental health care systems. Traditional treatments, such as selective serotonin reuptake inhibitors (SSRIs), often have limited efficacy, and a notable proportion of patients do not respond adequately to them. Companies like Optimi Health Corp. (OPTI.C), a leading-edge Canadian licensed drug researcher and formulator, is seeking to address this depression treatment gap with novel psychedelic formulations.
Studies have shown that psychedelics, like psilocybin and MDMA, can produce substantial and rapid improvements in depressive symptoms. For example, psilocybin has demonstrated significant antidepressant effects in patients with treatment-resistant depression. In one study, a single dose of psilocybin reduced depression scores by more than six points on the Montgomery-Asberg Depression Rating Scale, a substantial improvement compared to the two to four points typically achieved with current treatments for treatment-resistant depression. Furthermore, these effects were not only profound but also rapid, with improvements noticeable as soon as the day after treatment and lasting for at least 12 weeks.
The field of psychedelic-assisted therapy is also making strides in the treatment of PTSD (Post-Traumatic Stress Disorder). Recent phase 2 and 3 trials have shown the effectiveness of MDMA in treating PTSD, with a significant proportion of participants experiencing clinically meaningful benefits and many no longer meeting the diagnostic criteria for PTSD by the end of the study.
The Company
Optimi Health is a vertically integrated market participant that develops and distributes psychedelic drug candidates for medical therapies as well as functional mushroom combination for wellness applications. With two facilities in Princeton, British Columbia, dedicated to cultivation and manufacturing, the company functions as an end-to-end GMP manufacturer and supplier of psychedelic substances, offering formulation, active pharmaceutical ingredients (APIs), and drug product manufacturing from preclinical stages to analysis and commercial distribution.
Recently appointed chief science officer, Dr. Preston A. Chase, is an award-winning R&D chemist. He has more than 25 years of academic and industrial experience in development and commercialization of new products and processes for both large multinational organizations and start up enterprises. Chase has extensive knowledge in catalysis, synthesis and analytical chemistry and has penned over 30 peer reviewed scientific publications. He has also been awarded with multiple patents.
Backing up Chase is Dr. Farkhanda Khowaja, an internationally recognized and award-winning geneticist and biotechnologist with over six years of experience in Quality Assurance Management. Project consultant, Justin Kirkland, is a chemist with experience in natural products, small molecules, peptide synthesis, analytical chemistry, and drug formulations for improved bioavailability. He holds a U.S. patent for the improved synthesis of the ergoline BOL-148: useful in treating cluster headaches. Optimi’s cultivation manager, Scott Marshall, has extensive experience in the cultivation of fungi, particularly in the Psilocybe genus. He has attained remarkable proficiency in overseeing large-scale operations, engaging in genetic advancement, and achieving the stabilization of both novel and existing varieties of P. cubensis.
Optimi was founded by COO & Director, Bryan Safarik, CMO & Director, Dane Stevens and, CFO, Jacob Safarik. They wield almost forty years of combined experience in management, operational efficiencies, international product sourcing, development, manufacturing, accounting, project finance, business development and quality assurance.
CEO William (Bill) J. Ciprick, is a 25-year veteran with a successful business track record across a wide selection of organizations from Fortune 500 corporations to small and medium-sized businesses. He also helped a high tech company go public and grow from $200 M to $800 M in under 4 years. Advising him is a board made up of renowned industry veterans and well-known Canadian business icons.
The company recently signed a supply agreement with Sunshine Earth Labs Ltd., a fellow British Columbia-based biosciences company licensed by Health Canada.
This strategic collaboration marks a significant milestone for both Optimi and Sunshine Labs, as it leverages the strengths of two reputable companies headquartered in British Columbia, Canada, reinforcing the region’s standing as a hub for innovative advancements in the psychedelics industry.
Ciprick commented on the agreement, “Our alignment with Sunshine Labs opens opportunities to harness our collective contacts and connections, addressing the global demand for GMP drug substances for research purposes on a meaningful scale.”
The supply agreement outlines Optimi’s commitment to manufacturing and supplying Sunshine Labs with Full Spectrum Active Pharmaceutical Ingredient (API) and encapsulated psilocybin product, and encapsulated MDMA from Optimi’s 10,000 sq ft, state-of-the-art facility in Princeton, British Columbia. The purchase quantity under this agreement will be determined on a case-by-case basis to meet the evolving needs of the market.
What we think
The global anxiety disorders and depression treatment market size is projected to grow from USD 20.42 billion in 2023 to USD 26.46 billion by 2028, at a compound annual growth rate (CAGR) of 5.32% during this period. North America is expected to hold a significant share of this market, driven by the rising prevalence of anxiety and depression disorders, the presence of major pharmaceutical companies, and strong clinical pipelines in the region.
With the increasing recognition of the therapeutic potential of psychedelics and a growing body of clinical evidence supporting their use in psychiatric disorders as well as potential regulatory approvals on the horizon, the legal psychedelics market is expected to grow significantly, offering new hope for patients with conditions like depression and PTSD that are difficult to treat with conventional therapies.
If Optimi Health can continue to execute on its milestones and bring psychedelic drug candidates to market, it presents an interesting investment opportunity. Insiders seem confident of this prospect as they continue to add to their holdings. Perhaps you should put this one on your radar. As always, do your due diligence and speak with an investment professional before making any portfolio decisions. Good luck to all.
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