A local research project involving psilocybin — commonly known as magic mushrooms — garnered an investment.
A drug development company focused on low-dose psychedelic-derived therapies is investing in University of Alabama at Birmingham research.
Diamond Therapeutics Inc. is the drug development company focused on using such therapies for the treatment of mental health. It recently unveiled a strategic investment round led by First Avenue Ventures Life Science Fund I, a multimillion-dollar life science fund with a focus on supporting research developed UAB.
The fund amount was not disclosed.
Proceeds from the fund's investment will support Diamond Therapeutics' collaboration with UAB on an investigator-led clinical trial of low-dose psilocybin to treat demoralization. The study has received FDA authorization. Noted UAB psychedelic researcher Peter Hendricks will be the principal investigator.
FAV LS Fund I focuses on investing in early-stage drugs, therapies and devices developed at UAB and in Birmingham.
Fund manager Mike Goodrich said the investment in Diamond and UAB's study of the effects of low doses of psilocybin on demoralization has the potential to offer hope to the many people suffering from mood disorders.
"We are most grateful for First Avenue's support," said Judith Blumstock, CEO and founder of Diamond. "The work we are doing with Dr. Hendricks and UAB is the first of its kind. There are no other studies examining the effects of psychedelics on demoralization. The fund's support will help advance our work to the next level, bringing us closer to our goal of offering patients new and better treatments."
