Psyence BioMed signs ibogaine rights term sheet

• Psyence BioMed announced a binding term sheet for proposed exclusive U.S. ibogaine rights through its Texas subsidiary.
• The agreement would make PsyLabs the exclusive supplier and the subsidiary the exclusive U.S. wholesaler and distributor.
• The proposed arrangement includes up to approximately US$1.3 million in development and regulatory milestone payments.

Psyence BioMed (NASDAQ:PBM) announced that its Texas subsidiary signed a binding term sheet with PsyLabs for proposed exclusive U.S. ibogaine rights.

Under the proposed arrangement, Texas Ibogaine Research Corporation would receive ibogaine-related technical rights, while PsyLabs would serve as the exclusive supplier and the subsidiary would become PsyLabs’ exclusive U.S. wholesaler and distributor.

Psyence BioMed said the subsidiary would pay development and regulatory milestone payments totaling up to approximately US$1.3 million for the first drug candidate, along with a low single-digit royalty on net sales of each drug candidate.

Psyence BioMed focuses on developing psychedelic-based treatments and advancing research programs involving compounds such as ibogaine.

The company said the proposed U.S. development program remains subject to a definitive agreement and additional work required before any clinical investigation can be proposed.