With the market surging back to life, investors are poised to pounce on the next trend...
And if you missed out on the cannabis boom then you’ll want to pay special attention to what’s coming next.
It has nothing to do with cannabis, THC or CBD…
Yet, this completely new market opportunity may be about to become front page news…
Because the FDA just “fast tracked” it.
Why? It could help solve a serious problem.
Big Pharma’s pills for mood disorders just don’t work for many people.
Currently, major anti-depressant medications only improve symptoms in 40 to 60 out of 100 people.
Plus, the side effects for some of these anti-depressants can be severe: insomnia, skin rashes, headaches, joint and muscle pain, stomach upset, nausea, or diarrhea. Such effects can be both temporary or chronic, depending on the patient.
According to the National Institute of Health, more than 16 million Americans suffered from depression in 2016, while 40 million suffer from anxiety, making it the single most common mental illness in the United States.
For certain groups, it’s much worse. About 30% of active-duty and military personnel deployed in Iraq and Afghanistan suffer from mental illness, particularly post-traumatic stress disorder (PTSD) and depression.
Traditional treatments just aren’t cutting it for some.
But a new set of game-changing “special compounds” may shake things up.
And there’s a little company called Champignon Brands (CN:SHRM;OTC:SHRMF) developing a therapy that could be more effective than the traditional pharmaceutical approach to treating anxiety, depression and mental illness.
Instead of dulling the mind, the Champignon approach looks to heals it—a method that harnesses cutting-edge methods with a goal to deliver lasting results.
And with the market for anti-depressant drugs was more than $13 billion in 2018… and is expected to near $16 billion by 2025… investors should pay attention.
It’s no wonder that the company’s stock has tripled in value since January, as the rest of the economy takes a pounding.
##1 BREAKTHROUGH, NATURALLY PRODUCED “SPECIAL COMPOUNDS”
Traditional anti-depressants don’t treat depression, so much as they numb the mind.
And that’s caused a lot of problems for patients struggling with the symptoms of chronic depression.
Selective serotonin reuptake inhibitors (SSRIs), the most common depression medications, come with a long list of side-effects, including headaches, nausea, vomiting, and diarrhea.
Tricyclic antidepressants (TCAs), another common treatment, come with their own mental effects, and have been known to worsen depression and even push patients towards suicide.
But now, medical science is moving towards new, “special compounds,” that may alleviate symptoms much more effectively than traditional medications.
Big Pharma has spent decades and billions of dollars suppressing these methods. But now they’re coming into their own, thanks to the explosive popularity of marijuana and CBD.
Ketamine, a powerful anesthetic drug and tranquilizer, has in clinical trials shown immense benefits as a treatment for depression and anxiety in tiny micro-doses. And after years of resistance, the FDA is now approved on a limited basis the first ever legal Ketamine drug—a nasal spray called Spravato used in treatment-resistant depression.
The drug has proven so effective in clinical trials that the FDA has given it Fast Track and Breakthrough Therapy designations, meaning that it could enter mainstream use fairly soon.
Two other compounds, MDMA and Psilocybin, have similar effects.
When repeatedly taken during the day in small quantities—a process known as “micro-dosing”—these powerful compounds can alleviate depression symptoms, without some of the debilitating or potentially dangerous effects of traditional medications.
And Champignon has the inside track on Psilocybin.
In 2020 the company acquired a firm that held four patents in Psilocybin, aimed at mitigating the effects of traumatic brain injury—a condition most prevalent in pro athletes, particularly football stars.
Champignon has also acquired the Canadian Rapid Treatment Center of Excellence (CRTCE), a firm founded by a world-renowned psychiatrist, where Ketamine treatments have been applied more than 1,500 times to several hundred patients, specifically first responders and veterans.
Curiously, the compounds here are derived from fungi—mushrooms, specifically—which can be grown easily in ideal conditions. In large doses these plants can have hallucinogenic and psychotropic effects, but in the right doses they can act as treatments for mental illness.
Psilocybin has been known to scientists for decades, with the first clinical trials held in the 1960s and 1970s. In the last few years, there has been a resurgence in research on the compound, with new clinical trials underway at Johns Hopkins, NYU, Imperial College, UCLA, and the University of Zurich. Psilocybin is generally illegal for consumption but some jurisdictions are opening up legalization for certain treatment.
And now the market is starting to take note.
##2 A MARKET SIZE OF 450 MILLION PEOPLE
Mental health is a worldwide problem. But it’s also a big opportunity for companies with innovative solutions, and investors looking to score big by buying into small-cap firms.
According to the WHO, 25% of the world’s population will be affected by mental health disorders at some point in their lives.
Right now, 450 million people live with such conditions, and seek a variety of treatments, many of them expensive or ineffective.
Champignon is working on a developing a branch of medicine that has the potential to take the world by storm.
They’ve already got some numbers working in their favor.
Take their Ketamine treatment acquisition, CRTCE.
In a single year, the center did $1.5 million in revenue with gross margins of up to 50%. While practicing out of one clinic, the center plans to open up four more in Canada, where the legal restrictions on Ketamine treatments are less stringent than the US.
The market for mushrooms, the kind which Champignon uses to develop Psilocybin, has been growing steadily and should reach $34.3 billion by 2024, according to one forecast.
A major application of its drugs is intended to be post traumatic stress disorder (PTSD) a condition most prevalent in military veterans.
But according to the latest statistics, the spread of PTSD is far wider than is normally believed. About 3.5% of the US population, 3.5 million people, suffer from PTSD or will at some point in their lives.
And it’s a bit grim to point out, but the effects of the COVID-19 pandemic—months of self-quarantine, lost jobs and wages, economic stagnation—is likely to make anxiety and PTSD an even bigger problem.
Right now, common treatments include counseling, therapy, and medications. But the treatments developed by Champignon could find a major niche in the anxiety and PTSD market.
So that’s a global market of 450 million, with 11 million users immediately in need inside the U.S. This number of people will likely push regulators to consider legalization of Psilocybin sooner rather than later.
For comparison, the market for many other successful drugs are far smaller.
##3 THE TOP STOCK IN A NEW, MULTI-BILLION MARKET
Champignon has built a diversified portfolio of properties and patents, which could form the basis for the company’s break-out.
Their first acquisition was a mushroom cultivator in British Columbia, the site of the company’s planned laboratory and initial infrastructure for developing new compounds.
Next, Champignon acquired Novo Formulations, the brain-child of a healthcare entrepreneur, that developed a topical cream called LivRelief and has wide-ranging connections to the FDA and Health Canada.
Finally, Champignon acquired a firm with four Psilocybin and CBD patents for treating traumatic brain injuries.
After an IPO that raised $2.8 million and a string of acquisitions, Champignon is positioning itself to profit from several aspects of the drug industry.
Moreover, the company should benefit from the changing process of legalization, which could soon bring these new compounds into the mainstream.
Right now, the market is limited. A small handful of jurisdictions in the US allow for these drugs.
But the pattern has been set by psychedelic medicine and CBD. Only a handful of years ago, these drugs were considered illicit and existed only in black markets. Now the legal psychedelic medicine industry is valued at $11 billion and could reach $73 billion by 2027.
Research into these special compounds has picked up in recent years. Clinical trials are now in full swing in Johns Hopkins, Cambridge, Harvard, Yale, Kings College, and Oxford.
And legalization could be gain momentum.
Ballot initiatives to decriminalize Psilocybin have been passed in Denver, CO and Oakland, CA. In Canada, where access to medical psychedelic medicine was legalized federally, activists are now preparing petitions for allowing access to psilocybin as a constitutional right.
Recently, mainstream publications like Forbes and the Wall Street Journal have guessed that mushrooms are poised to follow the psychedelic medicine track, and will soon enjoy widespread acceptance.
All of that is good news for Champignon. The company has the infrastructure, the patents, the capital and the know-how to capitalize on the current trends in the healthcare space.
##4 EXPONENTIAL GROWTH IN 2020
Champignon could be on the verge of exponential growth.
The company has grown 400% from its IPO…but it’s still a small cap with room to expand.
Their products are poised to tap into market need, particularly in depression and anxiety treatments—areas where Big Pharma’s drugs haven’t adequately addressed the need.
They’re set to expand their clinical presence in Canada, and they’re waiting on the expansion of Psilocybin legalization in Canada and in the US.
Investors should take note. We saw this with psychedelic medicine. Things look unchangeable—then everything changes at once.
And Champignon could be among the first companies to ride this new trend. This is definitely a company to watch.
Other companies are looking to make their mark, as well:
Aptose Biosciences Inc. (NASDAQ:APTO, TSE:APS) is a biotech company specializing in personalized therapies to address Canada’s unmet oncology needs. The company uses genetic and epigenetic profiles to gain insights into certain cancers and patient populations in order to develop new treatments within the space.
Aptose has an exclusive partnership with Ohm Oncology to develop, manufacture and commercialize APL-581 in order to treat hematologic malignancies and related molecules.
In late 2018, Aptose announced that it would be participating in a number of investor conferences, including January 7th’s San Francisco-based Biotech Showcase 2019 to generate awareness and highlight their accomplishments.
AEterna Zentaris Inc. (NASDAQ:AEZS, TSE:AEZS) is a major biopharmaceutical up and comer. In 2018, the company saw steady growth, and an array of new developments over the course of the year. With a focus on oncology, endocrinology, and women's health solutions, AEterna has created a variety of new products, including Macrilen, the first and only FDA-approved oral test for the diagnosis of Adult Growth Hormone Deficiency.
Recently, AEterna received European approval to market Macrillen which has pushed its value even higher. Dr. Christian Strasburger, the Head of Clinical Endocrinology at Charité Unversitaetsmedizin Berlin and the principal investigator for macimorelin explained, “Clinical studies have demonstrated that macimorelin is safer and much simpler to administer than the current methods of testing for insulin-induced hypoglycemia, and is well-tolerated by patients and reliable in diagnosing the condition.”
Zymeworks Inc. (TSX:ZYME) (NYSE:ZYME) is a Vancouver-based biotech company specializing in the development of therapeutics for the treatment of inflammatory and autoimmune diseases. Zymeworks burst onto the scene in 2017 with the largest Canadian biotech IPO in over ten years.
Zymeworks had a solid 2018, as reported in their year-in-review, with key partnerships with the likes of Celgene, Daiichi Sankyo, and a new collaboration with BeiGene.
The company also completed public financing round, adding over $97 million to its already-strong balance sheet.
THC Biomed International (OTCMKTS:THCBF) (TSX:THC)
THC Biomed operates as a licensed producer under Canada's Marihuana for Medical Purposes Regulations. It is also engaged in the research & development of the products and services to medical marijuana.
THC Biomed's recently announced a new THC-based beverage, aiming to appeal to a broader range of consumers. John Miller CEO explained, "THC has conducted extensive research on cannabis edibles and beverages and I have found our product to be exclusive in its category."
Though THC Biomed may be smaller than some of its more well-known competitors, it is just as ambitious. And it’s beginning to pay off. Earlier this month, the company made its first shipment of cannabis products to its Saskatchewan partner, and is rapidly expanding its holdings, with two new strata lot purchases, adding to its growing array of assets.
CRH Medical Corporation (NYSE:CRHM, TSE:CRH) is another Canadian giant with a history of strong acquisitions. CRH specializes in products and services designed for the treatment of gastrointestinal diseases in the United States, Canada, and internationally. With a long history within the space, CRH has positioned itself as a leader in the field, trusted by medical professionals all over the world.
CRH also made a majpr acquisition at the beginning of the year, buying out Anesthesia Care Associates, LLC, an Indiana-based gastroenterology anesthesia practice. The estimated $2.6 million deal will increase CRH’s footprint in the space, and has been well received by investors.
Edward Wright , CEO of CRH, commented, "Anesthesia Care Associates extends our footprint to the state of Indiana , and once again shows the value of our existing O'Regan customer relationships.”
By. Harry Leong
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
FORWARD-LOOKING STATEMENT. Statements in this communication which are not purely historical are forward-looking statements and include statements regarding beliefs, plans, intent, predictions or other statements of future tense. Forward looking statements in this article include: that the Canadian government will fully legalize and regulate psychedelic medicine this year; that the worldwide functional mushroom markets combined will be worth $34.3 billion in gross sales in 2024; that Champignon Brands Inc. (“Champignon”) can raise funds and acquire the firms listed that are involved in the mushroom and the Psychedelic medicine industries and access the expertise of Champignon’s acquisition targets’ management teams to create and market depression and anxiety treatments; that, if psychedelic medicine markets open up in other industrialized countries, the global psychedelic medicine market could expand exponentially; That Champignon’s business will be profitable. Forward-looking information is based on the opinions and estimates of Champignon at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Forward looking statements involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Matters that may affect the outcome of these forward looking statements include: that Psychedelic medicine may not be legalized on the timeline as expected or at all; that markets may not materialize as expected; that psychedelic medicine may not turn out to have as large a market as thought or be as lucrative as thought as a result of competition or other factors; that Champignon may not be able to close on its announced acquisitions because of regulatory approval requirements or other reasons; that the acquisitions do not provide the expected benefits, business or expertise expected; that Champignon may not be as able to diversify or scale up as thought because of potential lack of capital, lack of facilities, regulatory compliance requirements in the US or outside of the US or lack of suitable employees, partners or suppliers; none of Champignon’s treatments have passed clinical trials or received FDA or other health authorities’ approval; that Champignon may not be able to raise funds and develop better treatments than competitors in the psychedelic medicine industry; that foreign governments may not allow Champignon to operate in their countries; that actual operating performance of the facilities Champignon do not meet expectations; that competition quickly develops; that Champignon may not be able to retain key employees, partners and suppliers; costs may be higher than expected and profits therefore lower; competitors may capture most or all of the increased market demand; and other risks affecting the Company in particular and the psychedelic medicine industry generally, including without limitation risks related to most agricultural crops, including crop failure and medical developments, including without limitation failure of human trials or rejection by medical regulators. The forward-looking statements in this document are made as of the date hereof and the Company disclaims any intent or obligation to update such forward-looking statements except as required by applicable securities laws.
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