Disseminated on Behalf of: Algernon Pharmaceuticals
Christopher Moreau, CEO of Algernon Pharmaceuticals Inc. (CSE: AGN | OTCQB: AGNPF | FSE: AGW0), discusses the company’s sale of Ifenprodil to Seyltx, and their current focus on DMT as a treatment for stroke and traumatic brain injury.
Jim Gordon
Hi, I am Jim Gordon and you’re watching “Market One Minute.” Joining us is Christopher Moreau, he is the CEO and Director of Algernon Pharmaceuticals. Chris, welcome back.
Christopher Moreau
Good to be here, Jim, nice to see you.
Jim Gordon
Good to have you, sir. Okay, let’s talk about Algernon and their latest, most recent major transaction.
Christopher Moreau
In Q2 of this year, we announced the sale of our Ifenprodil research program, to a private US drug development company called Seyltx. We sold the Ifenprodil program for 2 million US cash, and for a 20% carried interest in Seyltx — and why that’s important is that, of course, we’re going to have a part of the future of the Ifenprodil program.
We did a lot of work with ifeprodil, drove it forward these last four years, but based on market conditions, the challenges to raise capital, we thought that it was best to bring in some new energy and to ensure that ifenprodil has a chance to be tested, and especially for chronic cough. It’s a very, very big market, and I think if it’s successful, Seyltx investors and Algernon investors will do very, very well.
Jim Gordon
Okay, well, now that the transaction is complete, what’s the focus for Algernon Pharmaceuticals now?
Christopher Moreau
So, our current focus is the investigation of the drug known as DMT, N,N-dimethyltryptamine for brain injury, and specifically starting with stroke, and this is a drug that’s naturally occurring. It is a known psychedelic compound, but in in vitro and in vivo studies — in vivo being animal studies — the drug is showing that it is not only protective of the brain after an injury, but it’s also helping the brain to heal, and that is a very new area of stroke research.
Most of the stroke drugs that have been investigated to date have tried to slow down or stop the damage that’s occurring when the stroke happens, and in a stroke, whether it’s a bleed or a blockage — hemorrhagic or ischemic — the brain is starved of oxygen and glucose, and those brain cells ultimately die. And when there’s cell death, there’s some deficit. You can’t speak, you can’t talk, you can’t walk. So, the data is compelling that DMT is not only possibly protective, but it is helping the brain to heal after, and that is a very exciting thing to think about.
Jim Gordon
Chris, when we first met, I just found this utterly fascinating. Can you, for our viewers, talk a little bit more about DMT?
Christopher Moreau
DMT when it gets into your bloodstream — and not every drug can pass through the blood-brain barrier to get into the brain, and the body is designed to keep things out of your brain — but this drug passes and gets into the brain and it does several things, but it does we know bind with something called the sigma-1 receptor in the brain, that releases brain-derived neurotrophic factor, BDNF, which is vital in brain repair.
So, a shot or a dose of DMT gets the brain on the path of healing called neuroplasticity, where literally the neurons bridge the gap around the damaged area in the brain and make the connections again. Those neural connections that help the brain rewire. So, this is a totally new method or approach to dealing with a brain injury, and that is not trying to slow down or stop the damage that’s occurring at the moment of injury, whether it’s a penetrating skull injury, concussion, stroke, but it’s helping the brain to heal, that’s what the data is showing, and we need to find out if we can recreate that in a human study.
Jim Gordon
Talk a bit about how long the time is for the victim. The victim has a stroke. What time would you be talking about in terms of help?
Christopher Moreau
So, we would want to deliver DMT as soon as we can. There’s really two ways to treat a stroke that’s ischemic blockage. You can either deliver a blood thinner called a TPA drug, it’s a clot buster, or you can surgically remove that blockage if the blockage occurs in a blood vessel that’s large enough so you can get into that area.
You know what happens is you fall ill, you’re found, and they suspect a stroke. They call an ambulance. You get to the hospital — they have to image you. Is this a bleed or a blockage? Then you get into ICU and they decide what your treatment options are. So, it would be at that point we would deliver DMT.
And this is really interesting about a stroke, but 90% of your recovery will happen in six months, about 80% within 90 days, so your brain is very furtive. It’s very involved in healing after the injury. So, we might end up finding that if you get DMT once a day twice a week during the first 90 days, that you’re going to reduce deficits, motor function, cognitive function, you know, the real serious problems that happen when you have a brain injury.
Jim Gordon
What’s interesting is that DMT is listed, I guess, as a psychedelic drug and people may have fixations and thoughts on that word. Explain a little why that’s incorrect.
Christopher Moreau
So psychedelic drugs were discovered and investigated in the 1930s, 40s and so on, but the anti-Vietnam War movement and LSD and psychedelic drugs, Nixon really came out strong and actually put certain drugs in categories where it’s not only illegal to use them, it’s almost impossible to do research. And that’s where.
Jim Gordon
Research too?
Christopher Moreau
Research as well, very difficult, because to have even the license to manufacture DMT, talk about jumping through hoops, never mind getting clinical trial approval and ethics approval. But to me it’s all unnecessary fear.
The rule should never be so tight that research scientists, physicians, companies like Algernon are restricted from doing ethical research. This drug has shown that it could reduce the damage that you or I might suffer from a stroke. That is, it’s life changing for many people, it’s fatal for many people too, but to not investigate it because of some fear. And the bottom line is, we’re not even delivering a psychedelic dose.
So, our research has shown that you don’t have to have that psychedelic experience for DMT to get in your brain and start that healing process. So, this needs to be investigated and we’re going to drive to get this study done, and let’s see what the data says.
Jim Gordon
I want to just change gears slightly for our last question here. Chris, you want to talk about how your team has met the challenges of the capital markets?
Christopher Moreau
I think number one is to run an efficient operation. So, we need to go to the capital markets to raise capital to fund our R&D. Now there’s still a challenge, but you have to be creative. We did the transaction with the Ifenprodil research program, that was an example of being creative. And I think at the end of the day, if we are successful at communicating the value of the data to potential investors, as long as we have a chance, I have that audience, then I’m confident that I’m going to be able to communicate that and raise the capital that we need to advance. And that’s why we’re still here, because as a team, we’ve been able to be successful at that.
Jim Gordon
Chris, thank you as always for joining us.
Christopher Moreau
Thanks Jim.
ABOUT ALGERNON PHARMACEUTICALS INC.:
Algernon Pharmaceuticals is a clinical-stage, Canadian drug development and repurposing company investigating drugs and naturally occurring compounds for unmet global medical needs. Learn more about Algernon Pharmaceuticals on their website here.
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