2025-04-09T18:49:15Z

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Beckley Psytech, a biotech startup focused on developing psychedelic-based treatments for mental health conditions, is currently working on generating excitement among investors to secure additional funding as it advances through crucial clinical trials for its innovative depression drug. According to information obtained by Business Insider, the Noetic Fund, a venture capital firm that specializes in healthcare and biotechnology investments and has previously backed Beckley Psytech, is actively seeking participants for a new investment vehicle that could inject up to $20 million into the company.

An email sent by Noetic Fund to potential investorsreviewed by Business Insiderindicates that this funding round would value Beckley Psytech at approximately $200 million prior to the infusion of new capital, potentially raising its post-money valuation to around $220 million. However, it is important to note that the ongoing efforts to raise these funds are still in progress, and the terms of the deal may change at any moment. Attempts to reach a representative from Noetic Fund for comment regarding this initiative have gone unanswered.

A spokesperson for Beckley Psytech provided clarity on the company's funding status, stating, "We are regularly in discussions with both existing shareholders and potential new investors to ensure the company remains well-capitalized. However, there is currently no term sheet in place with any partner and no active transaction is underway." This statement emphasizes the company's commitment to financial stability as it navigates the complexities of the biotech industry.

Specializing in the development of a short-duration intranasal spray, Beckley Psytech aims to provide effective treatment for individuals suffering from treatment-resistant depression and alcohol use disorder. The startup, which is based in Oxford, United Kingdom, has successfully raised $143 million to date, as reported by PitchBook. Earlier this year, in January 2024, Beckley announced a significant funding milestone, securing $50 million from Atai Life Sciences, a publicly traded German biotech firm that went public in 2021.

Beckley Psytech is among a growing number of companies exploring the therapeutic potential of psychedelic compounds for combatting mental health issues. It faces competition from other prominent firms in the field, such as GH Research and Compass Pathways, which are also pursuing similar avenues. Notably, Beckley Psytech's efforts align with a broader trend in psychiatry, where the promise of psychedelics is becoming a focal point in the search for effective treatments.

One significant landmark in this realm was achieved by Johnson & Johnson, which received approval in 2019 for its nasal spray, Spravato, designed to treat treatment-resistant depression. This marked a historical moment in medicine as it became the first new drug approved for depression treatment in over 35 years. However, its important to highlight that while ketamine derivatives like Spravato have garnered FDA approval, classic psychedelicssuch as psilocybinremain unapproved by the agency. Although ketamine and its derivatives possess psychedelic properties, they are not categorized under classic psychedelics.

Noetic Fund's communication with potential investors also outlined Beckley Psytech's aspirations to go public within a year of releasing its phase 2b clinical trial data or to consider a strategic merger or acquisition deal. This ambitious outlook showcases the company's proactive approach in an evolving market.

Beckley Psytech has its roots in the Beckley Foundation, a nonprofit established in the late 1990s to facilitate research on psychoactive compounds. The startup was launched in 2019 by co-founders Amanda Feilding, the foundation's founder and director, alongside her son Cosmo Feilding Mellen, who previously served as an advisor and executive director at the nonprofit for a decade. This familial connection underscores the foundation's commitment to advancing research in the field of psychedelics.

At the helm of the clinical protocol is Dr. Rob Conley, the chief science and medical officer, who brings extensive experience from his previous role as the chief scientific officer of neuroscience at the pharmaceutical behemoth Eli Lilly.

The company's inaugural drug leverages the psychedelic compound 5-MeO-DMT, which can be derived from the venom of the Sonoran Desert toad and certain plant species. Additionally, Beckley Psytech is working on a second program targeting major depressive disorder, utilizing a synthetic formulation of psilocin, the active component of psilocybin mushrooms.

Despite the promising developments, Beckley Psytech appears to be behind schedule regarding the release of trial data for its first drug. In March, the company announced the successful completion of patient enrollment for phase 2b of its trial and projected topline results to be revealed by mid-2025. However, when Atai Life Sciences made its investment in Beckley Psytech in January 2024, it expressed confidence in seeing published phase 2b data by the latter half of 2024. Atai Life Sciences is recognized as Beckley Psytech's largest shareholder, as stated in the documents reviewed by Business Insider.