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Next-Gen Psychedelics in Mental Health

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Next-Gen Psychedelics in Mental Health

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News

Next-generation psychedelics: should new


agents skip the trip?
Companies attract venture funding
for redesigned psychedelic drugs
and notch clinical trial milestones.

By Mark Peplow

W
hen Boston-based biotech
Seaport Therapeutics
launched in April with $100
million in venture funding,
it joined a growing cadre
of biotech companies that are fine-tuning
psychedelic drugs to treat a range of mental
health problems. These ‘next-generation
psychedelics’ aim to overcome some of the
limitations of using classical psychedelics
as therapeutic drugs for conditions such as
depression and substance use disorder.
In May, Gilgamesh Pharmaceuticals,
another company working on next-generation
psychedelics, announced that it would col-
laborate with pharma giant AbbVie to develop ‘Magic mushrooms’, the name commonly given to mushrooms containing the substance
new therapies for psychiatric disorders. Gil- psylocibin, have therapeutic potential.
gamesh will receive an up-front payment of
$65 million from AbbVie, with the potential for
up to $1.95 billion in option fees and milestone show limited efficacy. Investor interest has it’s not something they ever want to do again,”
payments, a clear sign of the growing interest also been buoyed by the recent success of says Aaron Koenig, chief medical officer at
in this area. Spravato (esketamine), a single enantiomer Boston-based biotech Delix Therapeutics.
Classical psychedelics — including psilo- of the anesthetic ketamine, which induces Although some researchers argue that
cybin, found in ‘magic mushrooms’; dimeth- trance-like states. The drug won US Food and a psychedelic experience is essential for a
yltryptamine (DMT), the active ingredient in Drug Administration (FDA) approval for treat- long-term improvement in mental health,
the South American psychoactive brew aya- ing depression in 2019, and last year racked up nobody knows for sure whether it will be pos-
huasca; and the 1960s counterculture stalwart $689 million in sales for Johnson & Johnson. sible to retain therapeutic benefit while avoid-
lysergic acid diethylamide (LSD) — are already But the psychoactive effects of such com- ing the trip. “That’s the billion-dollar question
being tested as mental health treatments. pounds pose some major challenges. It can of the field,” says Andrew Kruegel, CSO and
“This was very much fringe science even five be difficult to find a reliable placebo for a co-founder of Gilgamesh.
years ago,” says Sam Banister, co-founder blinded clinical trial, for example — there’s Banister notes that biotechs working on
and CSO of Psylo, a biotech with labs in Syd- no way a patient can mistake a sugar pill for a next-generation psychedelics all seem to
ney, New South Wales, Australia, and Boul- dose of LSD. And patients typically need close be pursuing distinct strategies to fine-tune
der, Colorado, working on next-generation supervision for many hours while under the their molecules. “Every company in this space,
psychedelics. “Now you have billions of dollars influence of the drugs, making it burdensome, as far as I can tell, is taking quite a different
of funding pouring into these initiatives and expensive and impractical for many patients. approach,” he says. In part, that may reflect
Credit: Juris Kraulis / Alamy Stock Photo

literally hundreds of companies developing To avoid these problems, some companies the lack of scientific consensus about the role
psychedelics.” are tweaking psychedelic drugs to induce of the psychedelic trip in the classical drugs’
The resurgent interest in psychedelics is shorter or milder ‘trips’ that will not require therapeutic effects. But it also demonstrates
partly driven by huge unmet need. The World such intensive patient oversight from clini- the breadth of opportunity in an area that has
Health Organization estimates that about cians. Others, including Seaport, are redesign- seen relatively little pharmaceutical progress
280 million people worldwide have depres- ing the molecules to erase their psychedelic since the SSRIs of the 1980s and 1990s.
sion, yet the most common antidepressants effects altogether while retaining their treat- Psychedelics are a broad and somewhat
— selective serotonin reuptake inhibitors ment efficacy (Table 1). “Some patients are ill-defined class of compounds. The psy-
(SSRIs) such as Prozac (fluoxetine) — often terrified when they go through these trips, and choactive effects of these drugs, including

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Table 1 | Selected companies working on next-generation psychedelic therapeutics

Name Location Founded Pipeline: strategy Conditions Progress

CYB003: deuterated psilocybin analog MDD Phase 2 complete,


with a shorter psychedelic experience phase 3 imminent
Cybin Toronto and Dublin 2019
CYB004: deuterated DMT analog with Generalized anxiety disorder Phase 2 imminent
a longer psychedelic experience
GM-1020: ketamine analog with no MDD Phase 2 underway
dissociative effects
Gilgamesh Pharmaceuticals New York 2019
GM-2505: psilocybin analog with MDD Phase 2 recruiting
shorter psychedelic experience
Reunion Neuroscience Toronto 2019 RE104: psilocybin analog with shorter Postpartum depression Preparing for phase 2
psychedelic experience
Delix Therapeutics Boston 2018 DLX-001: non-hallucinogenic analog of MDD Phase 1
MDMA and DMT
Lophora Copenhagen 2018 LPH-5: a potentially Depression Preparing for phase 1
non-hallucinogenic cousin of
phenylethylamines
Psylo Australia 2021 PSYLO-100X: non-hallucinogenic Depression Preclinical
‘psychedelic adjacent’
Seaport Therapeutics Boston 2024 SPT-348: non-hallucinogenic Depression, anxiety Preclinical
LSD derivative
MDD: major depressive disorder.

hallucinations and feelings of dissociation post-traumatic stress disorder (PTSD) and has partly because the drug must first be metabo-
from the body, vary dramatically depending an Investigational New Drug application pend- lized in the body to form psilocin, the com-
on the compound and the dose. “It ranges ing with the FDA. The agency is holding its first pound that targets the 5-HT2A receptor.
from feeling a buzz similar to having a cup of advisory meeting to discuss the application Cybin, a biopharmaceutical company head-
coffee to a full-blown LSD experience where on 4 June. (MDMA is not considered a classical quartered in Toronto, has shortened that trip
you’re shaking hands with God,” says Jesper psychedelic, but it is often treated as such.) with its psilocybin analog CYB003, which
Kristensen, a medicinal chemist at the Uni- Close behind Lykos is Compass Pathways does not require metabolic activation in the
versity of Copenhagen, whose spinout com- in London, which is testing psilocybin in two liver and intestines. To fine-tune the drug’s
pany Lophora is developing next-generation phase 3 trials for treatment-resistant depres- pharmacokinetics, the company also replaced
psychedelics. sion; and Mind Medicine, a New York-based some of the molecule’s hydrogen atoms with
Many psychedelics share similar molecular biotech that unveiled positive phase 2b results its heavier isotope deuterium, which slows its
structures based on a tryptamine or a phenyleth- in March for its LSD D-tartrate compound metabolic breakdown. The result of this tinker-
ylamine core. Most are agonists of a serotonin MM120 in treating generalized anxiety disor- ing is a more manageable psychedelic experi-
receptor called 5-HT2A, which seems to be cru- der. Compass and Mind Medicine have both ence: although it still requires psychological
cial to their effects. Ketamine, in contrast, is an received FDA ‘breakthrough therapy’ designa- support, the trip lasts for only 4–6 hours.
antagonist of the N-methyl-D-aspartate (NMDA) tions for these drugs. Cybin has completed a phase 2 trial of
receptor, a common target for anesthetics. “I am excited about the therapeutic possi- CYB003 for major depressive disorder, using
For all psychedelic agents, the sector is bilities of these substances, but I think there’s a a lower dose than classical psilocybin. In
booming. “We have identified nearly 150 drug lot of hype,” cautions Robert Malenka at Stan- March, the company unveiled data showing
development programs based on different ford University. Much of the science underpin- that CYB003 achieved strong antidepressant
types of psychedelic drugs,” says Jasparam ning these approaches remains unknown, and, effects that were more durable than those
Kaur, a senior business analyst at Roots Analy- he adds: “The actual evidence of therapeutic of SSRIs. “After four-and-a-half months, we
sis, a market research company headquartered efficacy is relatively limited.” are seeing the vast majority of patients still
in Chandigarh, India. A recent report by Roots There are also questions about their cost responding and staying in remission,” says
calculates that companies in this area have col- effectiveness, given that patients require Amir Inamdar, Cybin’s chief medical officer.
lectively raised over $3.5 billion since 2017 and close supervision by psychotherapists dur- CYB003 has breakthrough therapy designa-
estimates the market for therapeutic psych- ing the drug experience. “In Australia, the tion from the FDA and is due to start a phase
edelics could grow to $6.7 billion by 2030. cost per patient of MDMA or psilocybin 3 trial in the next few months, assisted by
One of the leading companies work- therapy is likely to be around AUS$20,000 to $150 million raised in March.
ing on classical psychedelics is Lykos AUS$30,000 for a treatment course lasting Cybin’s pipeline also includes CYB004,
Therapeutics in San Jose, California. It has several months [US$13,000 to US$20,000],” a deuterated analog of DMT. When given
completed two phase 3 trials using 3,4- says Banister. intravenously, DMT itself is rapidly metabo-
methylenedioxymethamphetamine (MDMA) Psilocybin faces similar challenges because lized and causes an intense trip that lasts less
in drug-assisted psychotherapy to treat a therapeutic trip can last for 8 hours. This is than 20 minutes, which may be too brief to

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News

be an effective therapy. In contrast, a single Gilgamesh is also working on GM-2505, a One of the company’s preclinical antide-
intravenous injection of CYB004 produces 5-HT2A agonist that is structurally related to pressants is a non-hallucinogenic LSD analog
a 90-minute trip, and Cybin is about to start psilocybin and DMT. GM-2505 completed a called SPT-348. LSD itself is a 5-HT2A agonist,
recruiting patients to a phase 2 trial of the drug phase 1 trial late last year and should enter but there is a lot of variation between patients
to treat generalized anxiety disorder. phase 2 for major depressive disorder this in how quickly it is metabolized in the liver,
Another problem is that some classical year. Its psychedelic effect lasts 60–90 min- making it challenging to determine the opti-
psychedelics are also agonists of the 5-HT2B utes — long enough for patients to “explore the mal dose. So Seaport has tethered its LSD
receptor, which is expressed in heart tissue and altered state of consciousness that might be analog to a novel drug delivery system called
can cause long-term cardiac problems. Kris- needed for long-term durable efficacy,” says Glyph that helps the drug to circumvent the
tensen’s company Lophora aims to solve that Krugel, yet within a timeframe that is man- liver. The drug is attached via a linker to a tri-
with its lead compound LPH-5, a phenylethyl- ageable for healthcare systems. “Personally, glyceride, which is absorbed through the gas-
amine derivative with an extra molecular ring I believe that the hallucinogenic effects are an trointestinal lymphatic system just like dietary
that makes it less flexible. LPH-5 has a 60-fold important component, as multiple hallucino- fats and passes directly into the bloodstream
higher selectivity for 5-HT2A over 5-HT2B. genic compounds have demonstrated dura- before breaking down to release the drug.
Lophora plucked LPH-5 from a large library ble, transformational changes from a single Classical psychedelic drugs are challenging
of analogs that the company has screened dose in human studies,” he adds. to blind with a placebo in a clinical trial, but SPT-
against various receptors. Other experiments Nevertheless, the company is also screen- 348 should be able avoid that difficulty. “Since
in rats suggest that it could have a persistent ing non-hallucinogenic drug candidates for we don’t have a psychedelic experience, the
and robust antidepressant effect, and the their neuroplastic effects. Neuroplasticity idea is you could do a real placebo-controlled
company is now preparing for a phase 1 trial is the brain’s ability to grow and reconfig- trial, which I think is helpful,” says Paul.
of LPH-5 for treatment-resistant depression, ure its synaptic circuits, and the company In Australia, Psylo has made extensive use
which will use electroencephalogram read- hopes that its ‘neuroplastogen’ compounds of computational modeling to study how hun-
ings and other measures to assess the drug’s will retain the efficacy of classical psyche- dreds of millions of different molecules fit into
effects. Kristensen expects that a therapeutic delics while eliminating their hallucinogenic the crucial 5-HT2A receptor and designed thou-
dose will not induce a trip in humans, based on effects. “If it has efficacy, even if it’s not remis- sands of potential drug candidates based on
standard experiments that involve measuring sion after a single dose, the uptake of such a the results. Its non-hallucinogenic lead com-
head-twitching behavior in mice, a good proxy therapy would be much higher,” says Krue- pound PSYLO-100X is not derived from any
for their psychoactive effects in humans. gel. “It could be taken with no monitoring, at classical psychedelic, and Banister prefers to
Other companies are confident that they home, as often as needed, just like any other call it “psychedelic adjacent.” The company
can further reduce or even erase those effects pharmaceutical.” is still carrying out toxicology studies on the
without losing therapeutic efficacy. Gil- Such non-hallucinogenic psychedelic ana- compound, but Banister is hopeful that it will
gamesh, for example, is taking that approach logs could also be safely taken by patients with enter a phase 1 trial next year.
with ketamine, DMT and psilocybin. In the case schizophrenia or dementia, says Kurt Ras- Banister notes that regulators have become
of ketamine, says Kruegel, the dissociative mussen, CSO at Delix. A phase 1 trial of Delix’s much more receptive to supporting clinical
side effects require that the subjects remain DLX-001, a neuroplastogen molecule related trials involving psychedelic drugs in recent
under supervision. So Gilgamesh designed to both MDMA and DMT, has shown that it years, as more evidence emerges that these
a ketamine analog called GM-1020 that has is non-hallucinogenic in people. In rodents, therapies might help patients. “We’ve seen
no dissociative effects and that also has bet- DLX-001 and other neuroplastogens in Delix’s an enormous growth in mental disorders,
ter oral bioavailability than ketamine itself. pipeline can stimulate the regrowth of dam- exacerbated by the COVID-19 pandemic,” said
After completing a phase 1 trial last year, the aged dendritic spines, key structures that help Steffen Thirstrup, chief medical officer at the
company began dosing patients with GM-1020 to connect neurons. Animal experiments also European Medicines Agency, during an online
in a phase 2 trial for major depressive disorder show that DLX-001activates 5-HT2A, but not Q&A session on 7 May. “I believe psychedelics
in March. “The hope is that the psychoactive the cardiac-risk-related 5-HT2B, and the drug is deserve a second chance.”
effects will be limited enough that this can on course for a phase 2 trial for major depres- In the next couple of years, many of these
eventually be taken at home,” says Kruegel. sion in 2025. companies’ clinical trials may begin to answer
Gilgamesh has been using machine learn- Delix’s Boston neighbor Seaport is also that crucial question of whether psychedelic
ing algorithms to study videos of mice in developing neuroplastogens, along with other drugs can deliver therapeutic benefit without
head-twitch experiments, to accurately quan- compounds, to treat depression and anxiety the trip. Positive results could mark a major
tify the animals’ movements. They are also disorders. “Our particular play is based on the advance in neuropharmacology. “If it works,
using Neuropixels probes to directly monitor notion that you don’t need a psychedelic trip the reward there is tremendous,” says Kruegel.
how hundreds of individual neurons respond experience to gather the beneficial effects of
to the drugs, offering a much higher resolution these psychedelic agents,” says founder and Mark Peplow
than conventional electroencephalograms. board chair Steve Paul. Penrith, UK

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The development of next-generation psychedelics holds significant economic implications for the pharmaceutical market. The resurgence in psychedelic research has attracted over $3.5 billion in investments since 2017, with market projections suggesting it could grow to $6.7 billion by 2030 . This growth is partly driven by the potential for these drugs to address large, unmet needs in mental health treatment, offering alternatives to traditional antidepressants which often show limited efficacy . Additionally, these psychedelics could lower overall healthcare costs by offering more effective, long-lasting treatments that require less frequent dosing . However, the high initial costs of drug development and treatment might pose economic challenges, possibly offset by reducing the need for long-term therapy and frequent medical supervision . If successful, these treatments could disrupt current mental health treatment paradigms, creating new revenue streams for pharmaceutical companies investing in these promising innovations .

The serotonin receptor 5-HT2A plays a crucial role in mediating the psychoactive and therapeutic effects of many psychedelic drugs, as it is the primary receptor that these drugs interact with to induce their distinctive hallucinogenic effects . Because of its significant influence on perception and consciousness, it is a key target in next-generation drug development, where the goal is to fine-tune the interaction between synthetic molecules and this receptor to maximize therapeutic benefits while minimizing unwanted psychoactive effects . Innovations aim to enhance receptor selectivity, as seen with compounds like Lophora's LPH-5, which shows higher selectivity for 5-HT2A over 5-HT2B, reducing potential cardiac risks . By modulating the receptor's activity, next-generation psychedelics attempt to retain or even enhance therapeutic efficacy without producing a full psychedelic experience .

Companies developing next-generation psychedelics are addressing challenges associated with traditional psychedelic therapies by designing drugs that either shorten or completely remove the psychedelic trip while retaining therapeutic efficacy. For instance, some companies modify psychedelic compounds to create shorter trips, thus reducing the burden of requiring prolonged supervision . Others are redesigning molecules to eliminate psychoactive effects altogether, which also helps in conducting placebo-controlled trials . Additionally, these companies are exploring non-hallucinogenic analogs and neuroplastogens that aim to deliver therapeutic benefits without the psychoactive experience, potentially allowing for at-home treatment and broader patient acceptance . These strategies are motivated by the practical challenges of administering classical psychedelics, such as patient supervision and the subjective nature of psychedelic experiences .

One major challenge in clinical trials of classical psychedelics is the difficulty in blinding participants due to the distinctive psychoactive effects of these drugs, which cannot be easily mimicked by a placebo . Additionally, the need for intensive supervision during psychedelic trips makes these trials expensive and impractical for large-scale use . Next-generation psychedelic drugs aim to overcome these challenges by designing non-hallucinogenic compounds, thereby enabling effective placebo-controlled trials. For example, Seaport Therapeutics' LSD analog SPT-348 avoids a psychedelic experience, facilitating a realistic placebo-controlled trial setting . Also, by reducing the intensity or duration of the psychedelic effects, these drugs aim to minimize the need for prolonged professional supervision .

The development of non-hallucinogenic psychedelic compounds could significantly transform mental health treatments by making these therapies more accessible and practical. Such compounds would allow for treatment without the intense and often unpredictable psychoactive experiences associated with classical psychedelics, which can be daunting for some patients . This change could lead to wider acceptance and compliance, as treatments could potentially be administered at home without the need for continuous clinical oversight. Moreover, non-hallucinogenic compounds may expand the patient population that can be treated, including those with conditions like schizophrenia or dementia, where hallucinogenic drug use might be risky . These advancements could ultimately lower treatment costs significantly and streamline therapy administration, facilitating integration into standard psychiatric practice .

Machine learning is contributing to the development of next-generation psychedelics by enabling detailed analysis and prediction of drug effects and interactions. For instance, Gilgamesh Pharmaceuticals is using machine learning algorithms to quantify animal behaviors through video analysis, enhancing understanding of the psychoactive and therapeutic effects of compounds like GM-1020 . Additionally, machine learning helps in the design phase by modeling how different molecular modifications affect binding to target receptors, such as 5-HT2A, which is crucial for the psychedelic effect . This technology also aids in identifying non-hallucinogenic analogs by predicting neuroplastic effects without hallucinogenic side effects . Overall, machine learning accelerates the drug development process by providing high-resolution data and predictive insights that guide compound selection and refinement .

The renewed interest in psychedelic drugs for mental health treatments is driven by several factors. One significant factor is the high unmet need for effective treatments, as evidenced by the World Health Organization's estimate of around 280 million people with depression worldwide and the limited efficacy of current antidepressants like SSRIs . Additionally, the success of drugs such as Spravato (esketamine), approved by the FDA for treating depression, has led to increased investor interest . There is also a growing recognition of the therapeutic potential of psychedelics, reflected in significant venture funding and clinical trial milestones by various biotech companies . Furthermore, the COVID-19 pandemic has exacerbated mental health disorders, prompting regulators to become more receptive to clinical trials involving psychedelics .

Some researchers argue that the psychedelic experience itself is crucial for the therapeutic efficacy of these drugs because it may prompt profound psychological insights and emotional breakthroughs that contribute to lasting mental health improvements. The altered states of consciousness induced by these experiences can foster new perspectives, enhance emotional processing, and increase openness to behavioral change, all of which are thought to be critical mechanisms underlying the therapeutic benefits of psychedelics . This perspective is supported by studies showing that the intensity of the psychedelic experience correlates with positive therapeutic outcomes. Hence, the challenge for non-hallucinogenic alternatives is to replicate these mental and emotional benefits without the traditional psychedelic experience, an area still under investigation . There is also the suggestion that such experiences contribute to neuroplasticity changes, supporting long-term benefits .

Companies are leveraging computational modeling and machine learning to streamline and accelerate the discovery of new psychedelic compounds by analyzing the interactions of millions of molecules with target receptors, such as 5-HT2A. For instance, Psylo uses extensive computational modeling to evaluate how potential drug candidates fit the receptor structures, enabling them to design thousands of molecules with desired characteristics . Machine learning algorithms are further employed to identify patterns in experimental data, refine predictions about drug efficacy and safety, and guide synthetic chemistry efforts . By predicting neuroplastic effects and psychoactivity, these technologies help prioritize compounds with optimal therapeutic potential for further testing. This approach significantly reduces the time and cost associated with traditional trial-and-error methods in drug development . Overall, computational methods are crucial for efficiently exploring the vast chemical space available for next-generation psychedelic drug candidates .

Deuteration, the substitution of hydrogen atoms with deuterium, affects the pharmacokinetics and therapeutic profiles of psychedelic molecules by reducing their rate of metabolic breakdown. This chemical modification results in a more stable compound that can sustain therapeutic effects for a longer duration while potentially reducing dose frequency and side effects. Cybin's analog CYB003, for example, utilizes deuteration to prolong and modify the pharmacokinetics of psilocybin, leading to a more manageable psychedelic experience and stronger antidepressant effects with a shorter trip duration . This approach provides a better-tolerated treatment profile, offering enhanced durability in therapeutic outcomes compared to traditional molecules . Additionally, deuteration supports precise control over drug action, allowing developers to achieve desired therapeutic effects while minimizing adverse outcomes .

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