Emyria (ASX:EMD) share price falling on news of MDMA therapy trial

The Emyria Ltd (ASX: EMD) share price is falling after news from company of a psychedelic therapy program targeting PTSD.

| More on:
Bag of white pills spilled onto a blue surface

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Emyria Ltd (ASX: EMD) are falling today after the company shared news of a psychedelic therapy program targeting post traumatic stress disorder (PTSD). At its intraday low, the Emyria share price has fallen by 5%.

At the time of writing, it has slightly recovered. Currently, the Emyria share price is down 3.85% – trading for 25 cents.

Let's take a closer look at the drug development and clinical services company's news.

Emyria's MDMA-assisted therapy trial

Emyria – formerly known as Emerald Clinics Limited – is set to sponsor a clinical trial targeting treatment resistant PTSD with MDMA-assisted therapy.

The trial has been developed in partnership with Mind Medicine Australia, a charity working to help end suffering caused by mental illness by creating more treatment options

The trial, which is still pending ethics approval, will evaluate the safety, efficacy and cost benefits of MDMA-assisted psychotherapy.

While the company didn't clarify how its trial will differ from others, it stated that most MDMA-assisted therapy involved 3 stages.

  • Preparation – in this stage the therapist and patient get to know one another and build trust
  • Administration and monitoring – the patient is given a dose of MDMA and supported by two therapists during a session which can last 6 to 8 hours
  • Integration – the next day, and at an average of 3 weekly intervals, the patient and therapist discuss the experience and its outcomes.

A cohort of therapists trained for the trial will graduate this month from Mind Medicine Australia's training course. Emyria has a facility ready for the trial.

Currently, the two bodies are working to create an ethics protocol to receive ethics approval.

Prior research on MDMA-assisted therapy

According to Emyria's release, between 5% and 10% of Australians are likely to develop PTSD during their lifetimes. The rate of Australian veterans who will experience PTSD is estimated to be closer to 20%.

The former chair of the Australian Defence Force Admiral Chris Barrie recently encouraged the Australian Government to consider the clinical use of specific psychedelics to help those recovering from trauma.

Emyria stated there is a body of evidence showing that in a controlled environment and supported by psychotherapy, ketamine, psilocybin, and MDMA can help with treatment-resistant mental illnesses.

It pointed to a study by the Multidisciplinary Association for Psychedelic Studies that found that 67% of those who received MDMA-assisted therapy for PTSD didn't qualify for a PTSD diagnosis after three treatments.

Further, MDMA-assisted therapy for PTSD has been granted 'Breakthrough Therapy' status by the US Food and Drug Administration.

Commentary from management

Emyria's managing director Dr. Michael Winlo commented on the company's involvement in the trial:

At Emyria, our strength is in providing safe access to unregistered treatments while also generating clinical evidence. To date, we have cared for over 4,000 patients with major unmet needs (including more than 80 patients suffering with treatment resistant PTSD) and collected high-quality Real-World Evidence. Emyria's clinical advisory, site network and data infrastructure is uniquely positioned to support safe and scalable psychedelic-assisted therapy, much like we have demonstrated and accomplished with cannabinoid medicines.

Emyria share price snapshot

The drop experienced by the Emyria share price as a result of today's news is unlikely to bother most investors. That's because it's a tiny bit of turbulence when compared to the its recent take off.

Despite today's fall, the Emyria share price is up 150% year to date. It's also up 257% over the last 12 months.

The company has a market capitalisation of around $40 million, with approximately 254 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

a woman and a man sleep side by side with the woman placing a hand on the man's chest while he wears a sleep breathing machine.
Healthcare Shares

Do weight loss drugs pose a threat to ResMed shares?

It's a question being asked amongst investor circles in 2024.

Read more »

A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket
Healthcare Shares

Buy this high-flying ASX healthcare stock for market-beating returns

Bell Potter thinks this top stock could keep rising from where it trades today.

Read more »

Happy, tablet or doctor in a laboratory with research results or positive feedback after medical data analysis. Smile, vaccine or healthcare worker reading or working on futuristic science innovation.
Healthcare Shares

Telix share price hits record high on strong quarter and guidance upgrade

This market darling has continued to deliver stunning top line growth.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Up 66% in FY24, will Telix Pharmaceuticals shares continue?

After such an impressive run, has the trend exhausted?

Read more »

Man sleeping with a sleep apnoea mask on.
Healthcare Shares

Buy Resmed shares at 'attractive entry level' says top broker

Could this be the right entry point to own Resmed?

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

CSL shares hit new 52-week high! What's next?

These ASX experts reckon CSL investors are still in for a treat.

Read more »

ASX share price movement represented by doctor pressing digitised screen with array of icons including one entitled health insurance,
Healthcare Shares

NIB shares rise as top broker calls the stock a buy

Is this stock a healthy opportunity?

Read more »

Man pointing at a blue rising share price graph.
Healthcare Shares

Why is the Nanosonics share price rocketing 10% today?

Investors are pleased with a big improvement in this company's performance.

Read more »