Press Release: CB Therapeutics Targets Psychedelics & Cannabis Markets

There’s little question that the market for cannabinoids and psychedelics are poised to experience significant growth over the coming years. While the demand for cannabinoids, like cannabidiol (CBD), has already seen tremendous growth, psychedelics represent a blue-sky market due to the potential to treat a wide range of mental health disorders.

Let’s take a look at CB Therapeutics’ unique business model and how it could generate near-term revenue for shareholders in both cannabinoid and psychedelic markets.

Large End Markets

The United States spends over $200 billion each year on mental health disorders, including anxiety, depression, post-traumatic stress disorder, and addiction. A growing body of research suggests that psychedelics could play a significant role in addressing these mental health disorders, creating a market that could be worth nearly $7 billion by 2027.

With a growing number of jurisdictions legalizing medical and adult-use cannabis, the market for cannabinoids has also become one of the world’s fastest-growing markets. Fortune Business Insights™ projects that the market will reach nearly $100 billion by 2026, driven by growing demand for everything from cannabidiol (CBD) to tetrahydrocannabinol (THC).

CB Therapeutics’ Process vs. other methods: 

These multi-billion-dollar markets are plant or fungi-based markets that have conventionally relied on cultivation and extraction—expensive and wasteful processes. For instance, ethanol and other byproducts of the cannabis extraction process are often considered “industrial waste” while indoor cannabis cultivation has become a major source of electricity consumption.

Fortunately, CB Therapeutics has been pioneering a flexible yeast-based production platform that reduces costs, increases purity, cuts waste, and shortens the production cycle.

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Near-term Revenue

Many psychedelic companies are conducting clinical trials that will take years to generate meaningful revenue beyond milestone payments. While a handful of companies are focused on non-clinical revenue, these markets remain modest in size and will take time to develop as psychedelics move from the obscure to the mainstream.

CB Therapeutics’ presence in both psychedelics and cannabis puts it into a position to generate millions of dollars in near-term sales of cannabinoids, and after it secures a bulk manufacturing license from the DEA, tryptamines. In fact, the company has already signed a MOU with a leading U.S. academic medical center specializing in clinical trials and research and development to provide a supply of tryptamines for clinical trials.

In addition to the near-term sale of natural molecules and analogs, the company plans to retain the blue-sky potential that many clinically focused companies enjoy by developing novel molecules and their analogs. These molecules can be licensed out to commercialization partners, which could open the door to high margin recurring revenue from royalties.

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Unique Business Model

Many cannabinoid and tryptamine manufacturers either start with plants and fungi that undergo an extraction process or are chemically synthesized. Either way, these manufacturing processes result in both high costs and significant waste.

CB Therapeutics Pipeline:

CB Therapeutics has developed a yeast-based manufacturing process that cuts the cost of production by 20X to 100X and yields minimal waste. In addition, the platform is capable of producing a wide range of cannabinoids or tryptamines at scale that meet high-quality control standards to clinical trials or consumer sales.

The business model is supported by a robust intellectual property portfolio that already consists of two granted patents and over a dozen patents pending across the entire value chain, including microorganism, fermentation, purification, products, and more.

Located in Carlsbad, CA, the company has a 7,000 sq ft production facility and is run by a seasoned management team and scientists. CB Therapeutics also plans to patent novel molecules that it develops along the way for external licensing.

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Looking Ahead

CB Therapeutics is well-positioned to capitalize on both the cannabinoid and psychedelic markets with a unique business model that provides both near-term revenue and long-term blue-sky potential.

The company’s management team has raised US$6.2 million to date and is looking to raise it’s Series A, to scale its current production and facility from 7,000 sq. ft. in Carlsbad, CA to meet growing demand across its end markets.

Investors interested in these high-growth markets may want to take a closer look at CB Therapeutics as it gears up to go public in the near-term.

For more information, visit the company’s website or download their investor presentation.

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