Life sciences biotech company Core One Labs Inc. (OTCQB:CLABF) signed a Letter of Intent with GMP-certified manufacturer Medelys Laboratories International Inc. for the manufacturing of its proprietary psychedelic active pharmaceutical ingredient (API) products.

Core One's subsidiary Vocan Biotechnologies Inc. developed and filed a patent for a novel psilocybin production system using engineered bacteria, while the company also holds 3 provisional patents under its subsidiary Awakened Biosciences Inc. for additional synthetic technologies for psilocybin and psilocin production methods.

Under the new agreement, yet pending its definitive signature, Medelys will develop and manufacture commercial quantities of GMP-compliant API-grade biosynthetic and synthetic psilocybin products based on Core One's proprietary IP.

The final products will include different drug formulations, capsules, pills and other forms of delivery systems, all pharma-grade, which Core One will be able to provide through its networks of clinics to healthcare professionals working with psychedelic-assisted therapy through Health Canada's Special Access Program (SAP) or exemption under section 56(1) of the Canadian Controlled Drugs and Substances Act.

In addition to developing psychedelic compounds, Core One's four medical clinics maintain a combined database of more than 275,000 patients through which the company intends to integrate a rollout of its IP psychedelic technologies as well as support the future of psychedelic-based treatments for mental health disorders.

The deal is set to fill the gap of affordable, reliable, high-grade and GMP-compliant psilocybin, which according to some sources can be found at a market price of US$7,000 - US$10,000 per gram as produced through the conventional synthetic and extraction/isolation processes, and help position Core One as a major distributor of pharma-grade psychedelic compounds.

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