Israeli company Pharmocann (TASE: PMCN), which mainly deals in cannabis products, has announced that it will set up a company jointly with the Shamir Research Institute to carry out research and development of psychedelic drugs based on psilocybin mushrooms (magic mushrooms).
The company will be 51% owned by Pharmocann and 49% owned by the Shamir Research Institute, which is based in Katzrin on the Golan Heights. The institute operates under the auspices of the University of Haifa, and has an international reputation in research on psilocybin mushrooms.
According to studies at leading universities, the use of psilocybin can benefit people suffering from depression, post traumatic demoralization syndrome, anxiety, and obsessive compulsive disorder.
Pharmocann has begun cultivating ten different strains of mushroom for the purposes of the research. After the active substances are extracted, it will be examined whether they can form a basis for the development of drugs for various medical indications, among them depression and Alzheimer's disease.
Under the agreement, which is not the first collaboration between the parties, Pharmocann will invest $110,000 for its stake in the joint company, while the Shamir Research Institute will give the company a license for exclusive use of its intellectual property created in connection with the mushrooms, and research, development, and mushroom cultivation services.
Pharmocann has a market cap of NIS 67 million on the Tel Aviv Stock Exchange. So far this year, its share price has fallen 50%, and this follows a 23% fall in 2020. Last May, the company announced that it was setting up a special pharmacy for cannabis products in Eilat.
Published by Globes, Israel business news - en.globes.co.il - on November 8, 2021.
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