EMD signs up first new “East Coast” sites for psychedelic mental health expansion.

Our small cap Investment Emyria (ASX:EMD) is the first (and only as far as we know) company in Australia to have the regulatory approval to deliver psychedelic assisted therapies for mental health.

It has partnered with Medibank, who will cover the cost of EMD's psychiatrist-led PTSD therapies for any of its eligible ~4M members…

It is still very early days of this partnership…

And right now EMD only delivers these therapies out of two clinics in Perth.

But today, EMD expanded its national footprint by partnering with Avive Health to deliver more therapies for Medibank members in Queensland:

(Source)

This deal gives EMD exclusive access to deliver therapies within Avive’s Brisbane sites and potential to expand into Victoria and South Australia as well.

The hospital has 63 beds, with rooms set aside for EMD to deliver its mental health services.

This is the first step towards EMD’s national expansion, as it builds a strong business for delivering mental health services in Australia.

We still don’t know yet the number of patients that this site can take, which means that it is difficult to know how much revenue that EMD can earn from this new site.

BUT, we do know that there are around 800,000 people that suffer with PTSD each year in Australia - and EMD will be servicing a number of these people.

EMD will charge back to the health insurance $20,000 - $30,000 per patient.

(you can do the maths on what the potential could be for EMD if it services 100% of the Australia market)

EMD has a very defensible 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.

As at the last quarter EMD had a cash balance of $7.5M ($3.5M in the bank and $4M in the raise).

What do we want to see next for EMD?

Next we want to see EMD expand its footprints into more sites, this deal with Avive provides a strong foundation for growth in Queensland and hopefully Victoria and South Australia.

We also want to see EMD develop new conditions beyond MDMA treatment for PTSD, like treatment-resistant depression using psilocybin.