MindMed To Buy AI Medicine Company HealthMode For CA$42M

MindMed MMED MMEDF agreed to buy HealthMode, an artificial intelligence medicine company, in a CA$41.56 million (US$32.5 million) stock and cash deal.

The psychedelic biotech company confirmed Thursday it will acquire a digital medicine and therapeutics startup that relies on artificial intelligence-equipped digital measurement to advance the precision and speed of clinical research and patient monitoring.

Under the deal, MindMed is supposed to compensate the acquisition with the issuance of 82,508 multiple voting shares, worth around CA$41.25 million and with a $300,000 cash payment.

What’s In It For MindMed?

Through this purchase, MindMed will obtain rights to:

1. HealhtMode’s Intellectual Property;
2. Platforms for clinical drug trials;
3. 24 person digital medicine team.

Furthermore, via this acquisition, MindMed will welcome pharmaceutical expert and ex-Pfizer PFE digital medicine executive Daniel R. Karlin M.D. M.A. and former Google (NASDAQ: GOOG) AI/ML industry veteran Bradford Cross to its executive team.

New York-based company plans to include HealthMode’s machine learning engineering, product development and operations employees in its new digital medicine division, Albert.

MindMed works on setting up Albert as a digital mental health platform that would launch and commercialize psychedelic-assisted therapies for patients.

The purchase should be completed by the end of the month, being subject to Neo Exchange Inc. authorization.

“Our mission is to make MindMed as much a digital medicine company as a drug development company,” MindMed co-founder and CEO J.R. Rahn said. “With the addition of Dan and Bradford’s team of engineers and product experts, our digital medicine division, Albert, is now the Special Ops of digital medicine, applying machine learning to drug development and patient care.”

Rahn added that the future of mental healthcare will show that the constant digital measurement of both our mind and body could be crucial for our health as much as the drug treatment.

“In effect, we see a future mental health treatment paradigm where potential drug products such as our LSD experiential therapy might be prescribed right alongside software application programming interfaces (APIs) to prepare the patient for treatment and optimally monitor the after-care of one’s anxiety disorder,” Rahn concluded.

Recently, MindMed entered Psychedelics 2.0 space through the partnership with MindShift Compounds AG, a Swiss startup working in the development of second-generation psychedelic molecules.