Awakn To Focus On R&D Of Addiction Therapies, Moves Away From Ketamine Treatment For Alcoholism

Author: Lara Goldstein | June 12, 2023 03:18pm

Psychedelics biotech Awakn Life Sciences Corp. (OTCQB:AWKNF) is set to exit ketamine healthcare services to focus solely on research and development of therapeutics to treat addiction and licensing of its intellectual property (IP.)

"Streamlining our operations and increasing our focus on the advancement of our pipeline, both from a resource and financial perspective, is something that is necessary, and we believe will have a positive impact for Awakn and our shareholders, to try to maximize the long-term value of each business,” said CEO Anthony Tennyson. 

The R&D strategy, to be led by Prof. David Nutt as CRO, Prof. Celia Morgan as head of ketamine-assisted therapy and Shaun McNulty as CSO, involves progressing AWKN-P001, a Phase 3 clinical program targeting severe Alcohol Use Disorder (AUD). The research is being funded by the U.K. Department of Health and is expected to begin this year, along with additional preclinical and clinical programs.

Following the restructuring business decision, Awakn has signed a non-binding term sheet to exclusively license certain elements of its healthcare services IP as well as a non-exclusive license for the Kare protocol in the U.K. with a national consortium, including a private investment company and a large third sector addiction and mental health treatment provider, for an upfront fee and a revenue share.

The company has begun a strategic review of its Norwegian healthcare clinics business unit, including seeking potential purchasers. Awakn Oslo AS consists of two clinics, located in Oslo and Trondheim, which together reportedly generated the highest monthly revenue this past May.

See also: Awakn's Psychedelics Medical Chief Steps Down, Shifts In Company's Stocks And Ownership

As for the two U.K. clinics in London and Bristol, Awakn is initiating a restructuring plan toward either administration or liquidation.

Tennyson says the actions taken in the U.K. are “deeply regrettable” and not the path the company had hoped for, although “critically they provide the best outcome for continuity of care for existing clients and continuity of employment for a majority of the Awakn Clinics UK team."

These steps are expected to focus capital, both currently available and to be received from the closing of future tranches of a private placement financing announced on April 26, solely on the R&D programs and IP licensing.

Additionally, Awakn has agreed to issue 2.7 million share purchase warrants to a company consultant, to be exercisable at $0.47 (CA$0.63,) for a period of five years from the date of issuance.

See also: Awakn's Q4 2023 And Annual Financials, +500% YoY Revenue Increase Following Network Expansion

Photo: Benzinga edit with photo by Zita and canadastock on Shutterstock.

Posted In: AWKNF