The Biotech Boom May Have Only Just Begun
Companies / BioTech May 04, 2020 - 12:39 PM GMT“The world is moving so fast these days that the man who says it can't be done is generally interrupted by someone doing it.” ― Elbert Hubbard
A new medical development is sweeping the country…
Some may see it as controversial - but the studies don’t lie.
It’s effective.
So effective, in fact, that the FDA has just fast-tracked approval for research…
Meaning that it is aiming to gain a major stake in a key healthcare market that is on track to hit $260 billion in the next six years.
And one company, in particular, is making lots of right moves.
In the last 13 months, Champignon Brands (CN:SHRM;OTC:SHRMF) has taken a potential wonder drug from concept to product production for medical research. It then went public as a company and gained controlling ownership of a leading medical treatment clinic.
The name of this potential wonder drug is psilocybin, a natural psychedelic compound found in mushrooms, and it could very well end up saving the life of someone you love.
Interest in psilocybin has exploded recently due to its potential to treat depression, post-traumatic stress disorder (PTSD), substance abuse and even to increase mental performance. While currently a controlled drug and mostly illegal, psilocybin has been cleared for medical research in these areas.
This has attracted attention from high-level performers from Silicon Valley to Wall Street.
And amidst all of this hype, one company stands out.
With bold plans to roll out treatment facilities in the U.S. by the end of 2020, Champignon Brands plans to own and control its own product vertical.
Its ambitious goals and potent growth strategy just dropped Champignon Brands directly within the $89 billion dollar a year mental health sector.
A sector whose time has come for disruption.
Rewriting The Playbook For Sector Change
Describing themselves as a “Healing Optimization Company,” Champignon Brands committed themselves from the start to gain early mover advantage in the sector.
Starting in March 2019, CEO Gareth Birdsall, noticing a rising interest in the psychedelic medical or “microdosing” movement, quickly began building a company focusing on the theme and power players within the industry.
To help “navigate the waters” and attract top-level medical experts along with deal flow, Birdsall put together a board consisting of a top securities lawyer, a cannabis accountant, and two Toronto ex-narcotic officers experienced with decriminalized drugs.
The strategy, rewrite the playbook on what it means to fast-track sector vertical integration by owning, controlling and developing a basket portfolio of production assets and intellectual properties.
Establish A Market To Build Demand
To set a base foundation and introduce itself to the market, Champignon Brands (CN:SHRM;OTC:SHRMF) first created Vitality Superteas, a retail e-commerce distributor of teas packed with high quality mushroom and superfood extracts.
The creation of Vitality Superteas positioned Champignon Brands into the functional mushroom market. A market expected to hit $34 billion dollars in revenue by 2024.
Vitality Superteas, hungry for expansion opportunities, entered into an R&D partnership with Drip Coffee Social Ltd. to infuse the company's popular proprietary mushroom extract into a line of cold brew coffee products available to the public.
Within months of starting operations and partnerships, investors looking for a lucrative ground floor opportunity in the new industry, quickly provided the company with $1,000,000 in private funding.
The inflowing cash infusion didn’t stop there.
This impressive growth and popularity propelled Champignon Brands to a $2.8 million dollar IPO within a year of the original idea.
Less than a week after the offering, Champignon revealed their aggressive M&A strategy to move into the psychedelic medicine sector.
As word of the strategy spread, shares of the new publicly traded company climbed 400% in just over a month after the initial offer.
Champignon Brands became a living blueprint on how to expand quickly while targeting market disruption.
Controlling The Supply Lines
The first Champignon Brands (CN:SHRM;OTC:SHRMF) acquisition was Artisan Growers, a British Columbia based craft mushroom cultivation, sourcing and supply operation focused on organic production.
At Artisan Growers, the mushrooms are cultivated in special climate-controlled facilities that monitor moisture, humidity, light, airflow and temperature levels for optimal growth and quality.
The move secured the brands mushroom products supply lines and psilocybin quality control measures while jump-starting Champignon’s dedication to intellectual property data collection by planning an on-site research laboratory within the next 12-24 months.
Attracting World-Class Talent
Next on the acquisition list, Novo Formulations, a specialty biotechnology company, introduced Ketamine products and medical research IP into the Champignon Brands lineup.
Ketamine, once used as a medication for starting and maintaining anesthesia, has seen a resurgence in recent years for its effectiveness as a rapid-acting antidepressant in research settings.
Whereas most antidepressants in the market today require 2-4 weeks before signs of improvements are seen, Ketamine demonstrates effectiveness within 1-2 days in some research trials.
Even the World Health Organization recognizes Ketamine to be an Essential Drug that’s safer to administer than other types of anesthetic agents. However, Ketamine hasn't yet been approved for psychiatric treatment and is listed as a controlled drug in most countries.
With access to a purpose-built good manufacturing practice (GMP) and pharmaceutical (DIN) licensed facility in Quebec, Canada, and an accredited pharmacy in Ontario, Novo Formulations is working towards breakthroughs in ketamine, anesthetics and adaptogens and other natural molecules.
Surprisingly, the Ketamine introduction into the company wasn’t the top story with the Novo Formulations acquisition.
Part of Champignon Brands aggressive first mover strategy is emphasis on world-class team building. And that’s exactly what they got with visionary and relentless innovator Dr. Joseph Gabriele, Ph.D.
Dr. Gabriele, a gifted molecular pharmacologist specializing in signal transduction within the central nervous system, brought exclusive formulations and patented intellectual property into the Champignon Brands stable.
A relentless innovator, Dr. Gabriele leads the development of a transdermal or “patch” delivery system that can carry drugs into the skin dermis, circulatory system or muscles.
Compile The Intellectual Property
To strengthen its foothold in the psychedelic medicine sector, Champignon Brands next move was to acquire Tassili Sciences Corporation.
Tassili Sciences Corporation, a developer of therapeutics based on psychedelic and cannabis compounds, is partnered with the University of Miami and Miller School of Medicine to develop effective psilocybin-based therapeutics for the treatment of mild traumatic brain injuries (mTBI) and posttraumatic stress disorder (PTSD).
Tassili has filed four provisional patents and intends to demonstrate the effectiveness in PTSD and obsessive-compulsive disorder (OCD) treatments with psilocybin and cannabidiol.
The prize that came with Champignon Brands acquisition of Tassili Sciences Corporation?
Champignon Brands (CN:SHRM;OTC:SHRMF) now owns 100% of the intellectual property, drug discovery and data accumulated by Tassili from the University of Miami and Miller School of Medicine research clinical trials.
Fastrack Rollout
The final acquisition, Altmed Capital Corp., gave Champignon Brands instant 75% controlling ownership of the Canadian Rapid Treatment Centre of Excellence (CRTCE), one of the world’s leading Ketamine clinics.
The acquisition gave Champignon Brands access to an additional $2,000,000 in cash as well as Altmed’s substantial psychedelic medicine data and research IP.
Altmed, the clinic’s operator, was founded and led by the brilliant Chief Executive Officer, Dr. Roger McIntyre.
One of the most cited academics in psychiatry, Dr. McIntyre has published the largest number of research articles most frequently cited by researchers globally in over 20 fields of science.
His belief that Big Pharma’s antidepressants no longer work, referencing the bad side-effects and only working for some and not all patients. This belief led Dr. McIntyre to establish the CRTCE while focusing on Ketamine for its rapid impact on PTSD and depression.
Under the Dr. McIntyre’s vision and leadership, Altmed and the CRTCE completed over 1,500 administrations to date, with most patients being first responders and military veterans covered by medical insurance.
Last year, the Canadian Rapid Treatment Centre of Excellence clinic delivered $1.5 million in revenue with gross margins upward of 50%.
Sensing a more bullish acceptance of psychedelic medicine in the U.S., Champignon Brands and Altmed have targeted aggressively fast-tracking rollout of five additional clinics in the country by the end of 2020.
Control The Silo
Champignon Brands’ explosive growth mindset and first mover aggression has propelled the company from nothing but an idea to a portfolio of related assets in just over a year.
That’s right, Champignon Brands has only just started its second year of existence and it’s a major contender in the space.
Champignon’s aggressive strategy is to own and control its entire product silo. That includes the ideas, research data, patents, formulations, production, supply, quality, expertise and physical delivery of their product line.
The clinics, just like the CRTCE, will have onsite pharmacies with direct distribution of Champignon Brand’s products like Novo Formulations transdermals and other future proprietary products in development.
Triple-Digit Upside Opportunities
Ownership of the silo and rollout of additional clinics in 2020 is intended to give Champignon Brands tremendous first mover advantage in the new psychedelic medicine sector, once it is legalized.
Which means Champignon Brands (CN:SHRM;OTC:SHRMF) could be first to build strong customer loyalty and brand recognition in the sector along with establishing market pricing for products.
Owning the entire silo should give Champignon Brands the ability to control cost within its own product ecosystem. Something most competitors and late movers can’t and won’t be able to do.
Right now, the psilocybin and psychedelic biotech sector is probably where the medicinal cannabis sector was in 2013, just before medical cannabis got rolling.
If you missed out on the early medical cannabis movement, Champignon Brands should be on your watchlist as the company sets its roots in the next phase of alternative medicine.
By. Jorge Rodrigiez
This is a Paid Advertorial.
**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 governments will legalize and regulate psychedelic medicine; that the worldwide functional mushroom markets combined will be worth $34.3 billion in gross sales in 2024; that Champignon Brands Inc. (“Champignon”) can build an on-site research laboratory within the next 12-24 months; and rollout five additional clinics in the US by the end of 2020; can access the expertise of Champignon’s acquisition targets’ management teams to create and market depression and anxiety treatments; and 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. Psychedelic medicine may not be legalized on the timeline as expected or at all; 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; 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 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; Champignon may not be able to raise funds and develop better treatments than competitors in the psychedelic medicine industry; 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; 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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