Psyence BioMed unit signs ibogaine license term sheet with PsyLabs

Psyence Biomedical Ltd. (Nasdaq: PBM) announced that its wholly-owned Texas subsidiary, Texas Ibogaine Research Corporation (TIRC), has entered into a binding term sheet with Psyence Labs Ltd. (PsyLabs) for an exclusive license, supply and wholesale distribution arrangement covering pharmaceutical-grade ibogaine in the United States.

Under the term sheet, PsyLabs will grant TIRC exclusive rights to its know-how, trade secrets, cultivation, extraction and processing methods, and technical and regulatory information related to its pharmaceutical-grade ibogaine hydrochloride. PsyLabs will serve as TIRC's exclusive ibogaine supplier, and TIRC will act as PsyLabs' exclusive U.S. wholesaler and distributor. PsyLabs retains all rights outside the United States.

Financial terms include milestone payments totaling up to $1.3 million for the first drug candidate, an annual exclusivity fee beginning on the first anniversary of the first FDA approval, a low single-digit percentage royalty on net sales, and a margin-sharing arrangement on product resales by TIRC. TIRC's exclusivity is conditional on sourcing all U.S. ibogaine requirements from PsyLabs, subject to supply-failure step-in rights.

The parties have agreed to conclude a definitive agreement on or before November 30, 2026. If no definitive agreement is signed by that date, the term sheet will lapse. PsyLabs is noted as a significant shareholder of Psyence BioMed, and Psyence BioMed holds an ownership interest in PsyLabs.

TIRC intends to pursue a U.S. ibogaine development program under the license, pending the definitive agreement and completion of manufacturing, nonclinical and regulatory work required before any clinical investigation can be proposed. No clinical trial has been commenced and no regulatory application has been filed.

PsyLabs operates from an ISO 22000 and GMP-compliant production facility and holds licenses in its operating jurisdiction to cultivate, extract and export ibogaine. The FDA has not approved ibogaine for therapeutic use.

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