# Psychedelic Biotech Raises $100M for MDMA-based PTSD Treatment
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Published: 2024-01-08T00:00:00.000Z
Category: Psychedelics

Following their submission for FDA approval for MDMA-based therapy in December, MAPS has rebranded to Lykos Therapeutics.

#### Big Idea:

Lykos Therapeutics, formerly known as MAPS Public Benefit Corp., has raised over $100 million to advance a MDMA-based treatment for PTSD.

#### Why It Matters:

Treating mental health conditions, especially PTSD, persists as a challenge due to inadequate existing treatments. High dropout and low response rates, along with many patients retaining PTSD diagnosis after treatment, highlight the need for new, out-of-the-box therapies.

#### Key Details:

- The psychedelic drugs market is projected to reach USD $10.75 Billion by 2027, growing from USD 4.75 Billion in 2020.
- Lykos Therapeutics has developed an MDMA-based therapy for PTSD, showing promising results in two late-stage clinical trials.
- This therapy could address the high nonresponse and dropout rates in current PTSD treatments, benefiting an estimated 13 million Americans suffering from the condition.

> "Our North star is to fundamentally change how the healthcare system holistically treats people with mental health conditions. We are working to articulate what it means to be a leading public benefit organization in the pharmaceutical space," Lykos Therapeutics, CEO Amy Emerson wrote.

#### What’s Next:

The future includes FDA approval processes, with a decision expected by mid-February on Lykos' application review. If approved, Lykos must integrate MDMA for therapeutic use, potentially by late 2024.

#### Dive Deeper: 

The FDA's draft guidance in 2023 on psychedelic drugs and the successful fundraising of companies like COMPASS Pathways demonstrate an increasing openness to these unconventional treatments. The success of Johnson & Johnson’s Spravato, a ketamine-based treatment for depression, is another example and projects $725 million in annual sales.

Source: The Money Game (https://www.themoney.game/stories/psychedelic-biotech-raises-100m-for-mdma-based-ptsd-treatment)