Psyence Biomedical Ltd (NASDAQ: PBM) shares rose 22.5% on Tuesday after President Donald Trump announced the transfer of the University of Miami's 1994 Ibogaine Investigational New Drug application to federal authorities.
The move grants direct access to the existing FDA authorization, potentially accelerating the development of ibogaine as a medical treatment in the United States. Trump transferred the application to Secretary Kennedy, who described the action as a "historic gift" enabling faster progress in treating serious mental illness.
The announcement follows an April Executive Order aimed at expediting medical treatments for severe mental health conditions, including psychedelic therapies like ibogaine. Federal agencies, including the Department of Health and Human Services and the Department of Veterans Affairs, have since initiated research funding and collaborative efforts to advance the treatment. The FDA has also provided regulatory guidance to support development.
Psyence Biomedical, which operates in the psychedelic medicine sector, focuses on mental health treatments. The company's shares closed at $4.33, up 22.71%, with after-hours trading showing an additional gain of 2.01% to $4.56.
Trump called for additional companies and institutions to join the initiative, emphasizing the need to provide veterans with expanded treatment options under the "Right to Try" framework. The administration has prioritized mental health research, particularly for service members and veterans, as part of broader efforts to address the national crisis in mental health care.
