Global investment firm Psych Capital has agreed to acquire 100% of the issued share capital of Shortwave Pharma Inc., a biopharmaceutical company developing breakthrough psychedelics-based medicines to address unmet medical needs, particularly in the field of eating disorders.
Eating disorders, including; anorexia nervosa, bulimia nervosa and binge-eating disorder, affect millions of individuals worldwide.
According to the World Health Organisation, it is estimated that approximately 9% of the global population suffers from an eating disorder, highlighting a pressing need for innovative and effective treatments.
Innovating eating disorder treatments
Shortwave Pharma, an Ontario-registered company with operations based in Israel, is currently developing a transformative therapy for treatment-resistant anorexia nervosa – the most fatal eating disorder.
The company has developed a novel delivery method and drug combination for its initial eating disorders programme for anorexia nervosa, which it states is aimed at maximizing biological activity while being cognizant of low tolerance threshold to psychedelic components.
Having already completed the preliminary early-stage activities demonstrating the chemistry, manufacturing and controls (CMC) and preclinical abilities of its drug delivery product, the final product meets regulatory requirements for the early phases of clinical studies.
Shortwave Pharma has stated that the preclinical programme demonstrated not only the safety profile of the drug, but also the ability of its product to bring the active ingredients to the blood without the first pass metabolism. The company believes this will dramatically improve the efficacy of the drug and allow for a better safety profile.
Pre-clinical studies are currently being carried out to complete the profiling of the drug, which should support the design of upcoming clinical studies later this year.
Accelerating drug development
The acquisition of Shortwave Pharma by Psych Capital Plc, which specialises in the field of healthcare, positions the combined entity as a leading player in the field of eating disorder treatments.
By leveraging Shortwave Pharma’s expertise in drug development in combination with Psych Capital’s extensive resources and global network, as well as its commitment to innovation, the partnership aims to accelerate the development of novel therapies and address the urgent needs of patients suffering from these critical illnesses.
William Potts, Chief Information Officer (CIO) of Psych Capital Plc, emphasised the importance of this acquisition, stating: “The acquisition of Shortwave Pharma represents a significant step forward in our mission to improve the lives of individuals affected by mental illnesses, such as eating disorders.
“With their scientific prowess and innovative approach to drug development, we are well-positioned to make meaningful advancements in this critical area of healthcare.
“The market opportunity for eating disorder treatments is substantial, and there is a pressing need for effective therapies that can address the complex nature of these disorders.”
The acquisition is subject to customary closing conditions and regulatory approvals.
Upon completion of the deal, Rivki Stern Youdkevich, CEO of Shortwave Pharma, will join Psych Capital as CEO and as a board member. The Warrantors of Shortwave Pharma have the right to nominate an additional board director of Psych Capital within six months of the Completion Date, subject to background or regulatory checks as required by the AQUIS adviser.
Co-founder and CEO at Shortwave Pharma, Rivki Stern has over two decades of entrepreneurial, financial, and hands-on management experience in life sciences and biotech, consumer goods and services Rivki is a CPA (Isr.) and MBA with vast experience in strategy and business development in the US, Europe and Asia.
In recent years, Stern led go-public processes on exchanges including NASDAQ, IMCC, CSE and IMCC, and has raised over $30 million for cannabis and biotech companies in the fields of diagnostics, therapeutics and clinical development.
Rivki was a member of boards of Israeli governmental companies, private bio-pharma companies, and currently serves as a consultant to the Israeli government, as well as to accelerator programmes and investment funds. Stern is also a member of the executive management committee at the University of Haifa.
