Canada-based psychedelic drug development provider Diamond Therapeutics has raised an undisclosed sum through a strategic investment led by First Avenue Ventures Life Science Fund I (FAV LS Fund I). 

The strategic investment will be used to support Diamond Therapeutics’ partnership with the University of Alabama at Birmingham (UAB) on a clinical trial of low-dose psilocybin to treat demoralization. The study received FDA approval last month .

Diamond Therapeutics is a drug development company focused on low-dose psychedelic-derived therapies for use in the treatment of mental health. The company’s first clinical program focuses on accessible psilocybin-based drugs that deliver rapid therapeutic outcomes without perceptual side effects. Further, Diamond will be conducting a Phase II clinical trial to investigate low-dose psilocybin efficacy in treating generalized anxiety disorder (GAD). This Phase II study has received Health Canada approval and will be conducted in Canada on a take-at-home basis. The company has a diverse pipeline of tryptamine analogs and small organic molecules that act by modulating selective serotonin receptors and neurotrophic receptor signaling.