Little Green Pharma’s (ASX:LGP) subsidiary teams up with HIF for mental health treatment facility

• Little Green Pharma’s (LGP) psychedelics-focused subsidiary joins forces with the Health Insurance Fund of Australia (HIF) to establish a mental health treatment facility
• Reset Mind Sciences entered the strategic alliance, which aims to deliver psychedelic-assisted psychotherapy to eligible patients
• Reset will own and operate the proof-of-concept clinic, while HIF will contribute $250,000 towards its initial set-up
• The parties will also jointly launch a concurrent health economics study to provide HIF with data for future health insurance coverage
• Little Green Pharma called a trading halt on Wednesday morning ahead of a planned capital raise, and shares last traded at 19 cents

Little Green Pharma’s (LGP) psychedelics-focused subsidiary has joined forces with the Health Insurance Fund of Australia (HIF) to establish a mental health treatment facility.

Reset Mind Sciences has inked a strategic alliance with HIF to develop a proof-of-concept facility with the capability to deliver psychedelic-assisted psychotherapy to eligible patients.

Reset will own and operate the proof-of-concept clinic, while HIF will contribute $250,000 towards its initial set-up.

“As an industry, we have to think ahead as to how psychedelic treatment will integrate into the broader healthcare system, and this agreement with HIF could play a pivotal role in that regard,” Reset CEO Shaun Duffy said.

The parties will also jointly launch a concurrent health economics study to provide HIF with data for future health insurance coverage.

“Ultimately, we would like to be able to offer our members coverage for this type of treatment and also have a direct interest in mental health facilities that can provide treatment using psychedelics,” HIF CEO Justin James said.

While this is underway, the companies have agreed to a period of exclusivity to negotiate the joint development of further treatment centres.

The agreement follows the recent announcement by the TGA to allow psychiatrists to prescribe psilocybin for treatment-resistant depression and MDMA for PTSD — both of which will be under strictly defined parameters.

The new clinic is intended to support psychiatrists which have secured authorised prescriber status via approval from the Human Research Ethics Committee (HREC), with Reset now in advanced negotiations for the site which will house the facility.

As part of the deal, Reset has agreed not to enter similar arrangements with any other private health insurance providers before either December 31, 2024, or 18 months after the first HIF member is treated at the initial facility.

Little Green Pharma called a trading halt on Wednesday morning ahead of a planned capital raise, and shares last traded at 19 cents.