EMD scales up capacity by 50%, with East Coast clinics to come

Published 14-APR-2025 13:34 P.M.

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Today our mental health Investment, Emryria (ASX: EMD) said it has just opened a new clinic in the Perth Clinic, a licensed day hospital.

It’s an interesting new approach for EMD, where its treatment centres can be located on the same premises as a hospital enabling much broader access to patients.

We take it as a promising sign ahead of what we are eagerly waiting for - a major scale up in EMD’s business.

The first two fully funded patients will commence treatment on April 14 (today), marking the activation of the site.

We see this as important signal to the market that EMD is ready to scale up this year, ahead of a potential “national expansion”

EMD delivers and develops new treatments to improve mental health.

EMD is currently delivering psychedelic assisted therapies, in particular MDMA-assisted therapy for Post Traumatic Stress Disorder (PTSD) as well as a treatment for treatment-resistant depression.

There were two major bits of news included in today’s news, which has increased EMD’s capacity for treatments by 50%:

(Source)

EMD mentioned “private insurers and major payers now preparing to support innovative care models” - which we take as a good sign that traction is growing and payer agreement could eventuate.

EMD securing a payer agreement could open the door to significant amounts of new patients, whose treatment would be funded under the agreement.

This of course, would mean significant revenue growth for EMD as it scales up to deliver treatments.

Secondly, EMD’s ambition to scale its treatment centres across “multiple East Coast sites” indicates that the company is preparing for a major growth phase.

We’re Invested in EMD to see it quickly scale up its treatment model and deliver important care to patients with difficult to treat conditions.

What’s next for EMD?

🔄Payer Agreement

EMD signalled that it is seeking a “payer pilot program”.

We are very interested to see what this program would look like and if it is with one of the big health care system stakeholders (ideally with a big balance sheet).

This could be a big catalyst for EMD if it can secure a favourable deal.

🔄More patients, more results, more revenue

We also want to see EMD continue to recruit more patients into its ongoing MDMA-AT trial. The goal is to get 70 patients and we want to see if the promising results published in September of last year continue in a larger sample size.

Along the way, EMD will be generating revenue as it conducts its trial.

Read more about EMD in our EMD Investment Memo:

In our EMD Investment Memo, you can find: