“We all recognize that there’s a need for a scalable service provider in the space that is establishing a brand that is trusted,” he adds. “I don’t think there’s the capital around to just go, OK, we’re going to spend potentially a couple hundred million dollars on a clinical trial pathway, and we’re going to go build a global clinic network at the same time,” says Nyquvest. Oregon Psilocybin Entrepreneurs Navigate Business Requirements “Scale their experience with insurance companies across multiple sites.” “They’re saying we’ve become experts at the process,” says Sabrin about Novamind. The more patients that the company has worked with, the more opportunities they’ve had to deal directly with insurance. He notes that this is an important feature for a business model that will likely make much of its money through commercial third-party payers. One of the benefits of Novamind could be their expertise in dealing with insurance companies tempered through experience, says Sabrin. “Delix Therapeutics and the good work out of David Olson’s Lab at UC Davis is a good example,” he says.Īnother threat to this strategy could be failing to get reimbursements from third-party payers. Potential challenges to that model could include psychedelic treatments not catching on with patients, the FDA failing to approve therapies which use these substances, or the development of non-hallucinogenic psychedelics that don’t require a clinician’s assistance to administer, explains Sabrin. “This is especially true as more psychedelic therapies become approved by the FDA and available to patients that need them,” he adds. Sabrin says he would not be surprised if Numinus continues to acquire additional locations from other startups. “Scale will be necessary to drive down per patient acquisition cost and drive revenue,” says Sabrin. Consolidation is expected, agrees Sam Sabrin, senior advisor to Tabula Rasa and JLS, which invests in companies developing psychedelic-assisted therapies. The acquisition perhaps represents a trend in consolidation in the psychedelic space that Nyquvest expects to see more of in the next year. “I think they’ve really stood out amongst a number of groups that have emerged in the space as really a group that was very aligned in terms of our ethos around accessibility, looking toward the future of being able to provide psychedelic assisted psychotherapy in a very trusted and high integrity, high quality way.” “I’ve always been an admirer of what they’ve put together in the U.S.,” says Nyquvest of Novamind. When the acquisition is complete, Nyquvest says Numinus will operate 13 clinics in two countries, creating a cross borders platform for psychedelic therapy and clinical research. He says Novamind will join Numinus’s existing partnerships, including a collaboration with MAPS. Novamind has provided clinical research sites for both MindMed and the Usona Institute, says Nyquvest. “They are the clinical sites for a host of different trials with LSD as well as psilocybin.” “They’ve gotten a lot of support from insurance providers, so a number of their ketamine protocols are actually covered under insurance,” Nyquvest tells Lucid News. He says that part of what attracted him to Novamind was its business model, which he says is both sound and scalable. “The combination of Novamind’s network of mental health care clinics and research sites in the U.S., and Numinus’s leadership in psychedelic-assisted psychotherapy in Canada creates a best-in-class company.”Īccording to Nyquvest, the acquisition has been in the planning for several months. “This transaction offers significant value for Novamind’s shareholders,” adds Yaron Conforti Novamind CEO and co-founder in the statement. “Our combined capabilities will deliver exceptional value for our clients, employees and shareholders.” “We expect this acquisition will significantly bolster our financial performance, growing Numinus’ annual revenue to more than five times our current levels, and driving meaningful margin improvement through identified operating efficiencies,” says Payton Nyquvest, Numinus founder and CEO in a press release. Numinus projects that it will lead other companies in the sector in 2022 with annual revenue of approximately CAD$10 million ($7.9 million U.S.) based on the trailing four quarters. The all-share transaction for the acquisition of Toronto-based Novamind is expected to be complete in June 2022. is set to acquire Novamind Inc., which operates a network of psychiatry clinics with a focus on psychedelics. Vancouver-based mental health care company Numinus Wellness Inc. The psychedelics industry is seeing the first signs of a much anticipated consolidation.
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