PSYB:CC - PsyBio Therapeutics (PSYBF)(PSYB:CA) - Acquisition of Everest Pharma Adds Broad Ex-US License

PsyBio Announced The Acquisition of Everest Pharma Ltd. PsyBio has announced that it will acquire Everest Pharm Ltd, a company based in Lesotho, Africa. The acquisition gives PsyBio an operating license for psychedelic compounds outside North America for activities ranging from cultivation through export of psychedelic compounds.Increases Research Capabilities The acquisition adds geographic diversification that insulates the company from regulatory or politically-motivated changes that may affect US or Canadian clinical trials or the research environment. This furthers the company's strategy to actively develop and market products worldwide.Acquisition Increase Research and Development Capabilities For PsyBio. The Everest acquisition will provide research on local compounds and traditional practices, as well as the licenses for cultivation, manufacturing, sales and exports. It will cost $100,000 in cash, a relatively small price for the expansion it brings.Everest's Broad License Includes Areas Unrelated To The Business In addition to the assets related to psychedelics, the License To Trade also permits commercial activities in a variety of unrelated businesses including spices, cosmetics, drugs, and pharmaceutical products. There are no ongoing operations in these areas, and PsyBio has no plans to start these activities.Conclusion: We believe PsyBio will benefit from the acquisition of research, manufacturing, and development capabilities in a new geographic area. This should ensure its compounds move through development even it the political or regulatory environment for psychedelic compounds were to change. We reiterate our Outperform rating and price target of $2.00 per share. Read More >>