EMD expands agreement with Medibank for Victorian clinic

Our Investment Emyria (ASX: EMD) just announced an extension to its existing partnership with Medibank for its Victorian treatment clinic.

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EMD is a first-mover and specialist operator in the small (but very fast growing) psychedelic mental health care market.

EMD is actually one of the only companies rolling out a clinical network for the space, globally…

A few months ago EMD signed an agreement with Medibank - which would see Medibank pay for its members who are treated under EMD’s psychedelic treatment protocol - usually a cost of ~US$20-30,000.

Medibank is Australia’s biggest health insurer (with 4M+ members) - which opens up EMD’s services to a big group of Australians…

The Medibank deals were currently operating in Perth and Brisbane, and after today’s announcement will also apply to EMD’s Victorian clinic.

EMD expects to have the Victorian clinic up and running in Q2 this year.

EMD is currently in scale up mode, looking to expand across the east coast market in Australia - so getting payer backing for its Victorian clinic opens up the potential for a faster rollout in Victoria…

Here is a slide from EMD’s most recent presentation showing the “near term potential sites” - noting that there are a fair few in Victoria that would now be de-risked to a certain extent:

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We covered EMD’s national rollout plans in our latest note here: First mover in psychedelics - EMD's clinics are at capacity, major payers are onboard, and the data shows the treatment works

Here is how we see EMD’s rollout strategy playing out:

Because EMD is in the fortunate position of securing a “payer” for its services, its main focus is on scaling up its operations.

We have Invested in EMD to see it not only become the market leader in the Australian psychedelics care, but build a monopoly on delivering these services.

At the same time, we recognise that there is no guarantee of success here, this is small cap investing and there are risks involved.

We think EMD has a very defensible market position because it has:

• Authorisation from the TGA to deliver MDMA-assisted care to patients (this is not easy to get)
• A Payer Agreement with Medibank to cover the cost of these therapies to its members (years in the making).
• Data that shows it works and continues to work months after the patient is treated.
• A means to deliver therapies through physical clinics that it owns and operates (EMD is now looking to expand its footprint by licensing hospital space).
• Scale potential with an approved protocol from the TGA that it can “franchise” out to other clinics looking to deliver assisted therapies.

What’s next for EMD?

Revenues from Medibank deal increasing🔄

According to EMD’s recent quarterly, the Brisbane site as of late December has now started receiving revenue from the Medibank deal.

Q1-2026 will be the first quarter where the program is running for the entire 3 months.

So we should see a pickup in revenues.

Today, this agreement has been extended to the Victorian clinic that is expected to open in Q2-2026 (source), so we can expect a further increase of revenues into the second half of this year.

More new sites opened🔄

Now that EMD has signed on with Avive Health we want to see other potential sites that it can scale up its clinics to, Victoria has been announced as the next site planned to be opened.

EMD expects to have its Victorian site operation by Q2-2026.

Expand care offering to new indications and/or new drug therapies🔄

We want to see EMD expand its assisted therapy programs to psilocybin and ketamine, also for different mental health conditions like anxiety, treatment resistant depression etc…

More payers🔄

We want to see if EMD is able to secure another payer alongside Medibank.

Medibank and the Department of Veterans’ Affairs (DVA) are locked in.

We want to see EMD secure more payer agreements from organisations like workers' compensation insurers and other private health insurers.