Pharmaceutical companies are getting ready for the next big disruption in drug development: psychedelics.
What’s happening:
- Pharmaceutical giant AbbVie (NYSE: ABBV) has announced a new partnership with psychedelic drug developer Gilgamesh Pharmaceuticals to develop next generation psychedelic medicines for psychiatric disorders
By the numbers:
- AbbVie will provide Gilgamesh with an upfront payment of $65M USD to begin research and development of potential new psychedelic compounds
- Gilgamesh will have the opportunity to earn up to $1.95B USD through a combination of drug development milestones and future royalties
Going deeper:
- The collaboration between AbbVie and Gilgamesh will focus on developing next generation psychedelics that do not induce psychoactive effects such as hallucinations that are common with first generation psychedelic compounds
The intrigue:
- Gilgamesh was recently the recipient of a $14M USD grant from the National Institute on Drug Abuse for their novel ibogaine analogue for the treatment of opioid abuse
