Little Green Pharma (ASX: LGP) reports its psychedelics-focused subsidiary Reset Mind Sciences has entered into a Strategic Alliance with Health Insurance Fund of Australia (HIF).

This alliance has been entrenched to establish a proof-of-concept mental health treatment facility with the capability to deliver psychedelic-assisted psychotherapy to eligible patients.

Little Green Pharma reports the involved parties will conduct a concurrent health economics study to provide HIF with the real-world data necessary to inform potential member coverage for this treatment.

“As an industry, we have to think ahead as to how psychedelic treatment will integrate into the broader healthcare system”

Additionally, the parties have agreed to a period of exclusivity to negotiate the joint development of further treatment centres based on the initial concept.

The agreement follows the recent announcement by the TGA to allow psychiatrists, under strictly defined parameters, to prescribe psilocybin for treatment-resistant depression and MDMA for PTSD under the Authorised Prescriber scheme from 1 July 2023.

Psychiatrists seeking Authorised Prescriber status will first be required to obtain approval from a Human Research Ethics Committee (HREC), which requires fully documented treatment protocols.

Reset Mind Sciences Chief Executive Officer (CEO) Shaun Duffy said: “We believe the significant body of work we have undertaken over the last 18 months, particularly in respect of our clinical trial, is now an important resource to facilitate real world treatment.

As an industry, we have to think ahead as to how psychedelic treatment will integrate into the broader healthcare system and this agreement with HIF could play a pivotal role in that regard.”

Health Insurance Fund Chief Executive Officer Justin James says: “We believe it is vitally important that the health insurance industry is involved from the outset and HIF has always intended to be a first mover in this regard.

Ultimately, we would like to be able to offer our members coverage for this type of treatment and also have a direct interest in mental health facilities that can provide treatment using psychedelics.”

Reset has recently obtained HREC approval for clinical trials into the use of psilocybin-assisted therapy for patients with treatment resistant major depressive disorder.

The strategic alliance will draw on Reset’s clinical protocols and other key aspects of the trial in the development of the proof-of-concept clinic.

Reset will own and operate the proof-of-concept clinic and HIF will contribute $250,000 towards its initial setup.

Little Green Pharma is a global, vertically integrated geographically diverse medicinal cannabis business with operations from cultivation and production through to manufacturing and distribution.