Peyote May Be The Next Big Thing In Mental Health, And This Company Is Canada's Largest Producer
Lophos Pharmaceuticals is a bioscience company involved in the research and development of mescaline and peyote medicines for indications from mental health to alcohol use disorder. The company is also the largest producer of peyote in Canada, having developed a process that shrinks the cultivation time from 13 years in the wild to 3 years.
Lophos just received their CSDL from Health Canada.
Lophos just received their CSDL from Health Canada.
Transcript
00:00 (upbeat music)
00:02 - And welcome in Claire, the CEO of Lofos Pharmaceuticals.
00:07 Thank you so much for joining us here this morning.
00:09 - Thank you, Michael.
00:10 It's good to be here.
00:11 How are you?
00:12 - Doing great, Claire.
00:13 Like I said, it's cold here in Detroit.
00:15 We're definitely getting on into fall,
00:17 but we are still having fun here.
00:18 And of course, like I said,
00:19 it's great to have you on Benzinga All Access,
00:21 I believe for your first appearance
00:23 since we started partnering up with Lofos
00:25 and bringing your story to our retail investors.
00:27 So we're excited to go ahead and dive into it.
00:29 Let's as always start with a quick overview of the company.
00:31 Can you describe what Lofos Pharmaceuticals does
00:33 and what you guys are?
00:35 - Yeah, so Lofos Pharmaceuticals
00:37 is a masculine focused research company
00:40 that is also engaged in the cultivation
00:43 and sale of peyote cactus,
00:45 otherwise known as Lofophora williamsii.
00:48 Lofophora williamsii or peyote cactus is legal in Canada
00:53 due to an exemption that exists
00:55 in the Controlled Drugs and Substance Act.
00:57 And we really focused on this medicine
01:01 for a few different reasons.
01:03 One being that it is a traditional psychedelic medicine
01:07 that has been used for over 5,000 years
01:10 in indigenous communities.
01:12 And the other is that it's active ingredient mescaline
01:15 shows an extreme amount of promise as a phenylethamine
01:19 to treat indications such as mental health.
01:22 - Understood.
01:23 And when you talk about peyote, right, first and foremost,
01:26 what benefits does it bring
01:27 over traditional pharmaceuticals,
01:29 other psychedelics like psilocybin?
01:31 I'm sure a lot of people in our audience
01:32 are familiar with that,
01:33 but what benefits does peyote bring to the table
01:35 that these other traditional methods don't?
01:37 - So when you're looking at peyote,
01:40 this is a medicine that has existed
01:42 in indigenous communities for millennia.
01:45 It is generally regarded as safe
01:48 and it carries an exemption, not only in Canada,
01:51 but also the United States.
01:53 It is used for a variety of indications.
01:56 We talked about mental health treatment,
01:57 but there's also alcohol substance use treatment
02:01 as well as even physical uses.
02:03 But when you look at the research in this area,
02:06 it is severely lacking.
02:08 And that is one thing that LOFOS is very excited
02:12 and that we're really focused on
02:14 is furthering the research in this area
02:17 for that particular reason.
02:19 - Absolutely.
02:20 And talking about the research specifically too,
02:22 something that I really wanna highlight
02:23 is you guys are North America's largest cultivation
02:26 and research center for peyote specifically,
02:28 which is a huge calling card for LOFOS.
02:31 Talk to us a little bit about your production capacity
02:33 and what kind of operations do you guys have at this plant?
02:36 - That's correct.
02:37 One of our most proud achievements that we've recently had
02:41 is in the receipt of our controlled,
02:43 it's called a CSCL, controlled substance dealers license.
02:48 Now this gives us the ability to not only cultivate
02:53 in house, but to be able to study what we're cultivating.
02:57 To be able to extract mescaline from peyote
03:00 requires a controlled substance dealers license.
03:04 And so our site, which is located in Ontario in Napanee,
03:08 is 10,000 square feet.
03:10 It was purpose-built.
03:12 It has a state-of-the-art laboratory
03:14 that we are very, very proud of.
03:17 And we have the ability to house
03:20 up to 180,000 peyote plants on site.
03:24 - Amazing.
03:25 And not just the size and the production capacity
03:29 that you guys have,
03:29 but also the cultivation process specifically.
03:31 Let's talk about that.
03:32 You've mentioned a process that you have developed
03:35 that cuts down the time from 13 years
03:37 for cultivation to three.
03:38 That's a huge difference.
03:39 You're cutting a decade off the cultivation time.
03:41 How is that possible?
03:42 And how did you guys develop it?
03:44 - So this is something that is very exciting
03:46 and something that I'm particularly excited
03:49 to get the word out about.
03:50 One of the things about peyote in particular
03:53 is that, especially in the United States
03:55 and the small region that it grows,
03:57 it is severely endangered.
03:59 And there's some experts that are estimating
04:02 peyote could go extinct within our lifetime
04:05 on these traditional lands.
04:07 And the perception there, so in the wild,
04:10 peyote can take 13, some cases 26 years to produce a seed,
04:15 to be able to carry on that chain of life.
04:18 And one of the most amazing things
04:20 that we've been able to do
04:22 is to improve that grow environment,
04:26 to really specialize it and control it
04:28 in order to prevent peyote from going into dormancy,
04:32 which allows the seed producing capacity to be increased.
04:36 So we're able to cut that down to as low as three
04:40 to four years to produce that seed and continue that chain.
04:44 And that is something that a lot of people
04:46 are just not aware of that it is possible.
04:48 And we hope that by sharing this information,
04:51 that people who may be seeking this treatment
04:54 in the United States,
04:56 they'll be able to look at a different method of sourcing.
05:01 And I think that that is very important
05:03 and to be able to source it from a licensed producer
05:05 in that regard as well.
05:07 - Amazing.
05:08 And you mentioned the traditional lands a second ago.
05:10 I wanna focus in there for a second
05:12 because I think it's a very important topic
05:14 that may not be discussed as often as people might expect.
05:16 But when it comes to respecting the traditions
05:18 for the indigenous people that had these lands
05:20 and that peyote was traditionally associated with
05:23 earlier on,
05:24 how do you guys respect the traditions
05:25 and maybe make sure that you're carrying those on
05:27 into the future?
05:28 - Well, for us, this is of utmost importance.
05:31 And I think it really goes back
05:33 into how LOFOS was founded.
05:36 We founded LOFOS in 2021,
05:39 but it really started during the pandemic,
05:42 during that the height of the lockdowns
05:44 when my husband and I began seeing the incredible research
05:48 that was coming out of the psychedelic sector.
05:52 My husband who has indigenous roots in Canada,
05:54 he is Ojibwe,
05:56 and myself who has an industrial biotechnology,
06:00 pharmaceutical manufacturing background,
06:02 we really saw how we could couple this traditional use
06:06 with being able to improve access to the plant,
06:10 especially in Canada,
06:11 where we do not have access to the homelands
06:14 where it grows.
06:17 And so, when you're looking at the traditional use of peyote,
06:21 it is considered a sacrament,
06:23 and particularly on the specimens that are harvested
06:28 from where it grows.
06:29 And so when you're looking at the ceremony
06:32 and the applications of how to use peyote in that sense,
06:36 you really need to seek an elder
06:38 to be properly educated on that aspect.
06:43 What I think is really important,
06:45 especially in Canada,
06:46 is improving the access for those that are interested
06:49 in seeking this medicine,
06:51 because it is, you know,
06:53 the exemption in Canada applies for all.
06:55 It's not just for indigenous peoples.
06:57 And so respecting the fact that you should source it
07:01 from a person who,
07:02 or a company that is ethically
07:05 and sustainably cultivating peyote is truly important,
07:09 not only for the fact that peyote is endangered
07:12 at risk of extinction where it grows,
07:15 but also in respect of those that are using peyote
07:19 as a traditional medicine that is a sacrament.
07:21 It is of the extreme importance to protect that.
07:25 - 100%, very much respect that.
07:27 And when it comes to current operations
07:29 and what you guys are doing,
07:29 you just received your CSDL,
07:31 the Controlled Substances Dealer License.
07:33 What does that mean for LOFOS?
07:34 What are you gonna be able to use this for?
07:36 And how might this be a catalyst for you guys moving forward?
07:39 - Well, you know, that's a great question.
07:41 For us, the CSDL is a game changer.
07:44 It really opens up the avenues for us to be able
07:47 to create our own IP,
07:50 to study this amazing plant.
07:53 Peyote is very unique in that it has 50 known alkaloids,
07:57 and those alkaloids,
07:59 each one of them has its own indications and possibilities.
08:03 And so being able to further the research in this plant
08:07 is of the extreme importance,
08:09 as well as doing things like preserving the genetics,
08:12 and researching the different variations.
08:15 All of these things we're very excited to further in.
08:19 But then you also look at the active ingredient,
08:22 the psychedelic component, mescaline,
08:24 and there's quite a bit of promise there.
08:28 You know, traditionally to date,
08:29 we've seen a lot of talk and a lot of investor dollars
08:32 go towards tryptamines, such as psilocybin, LSD,
08:36 very cerebral psychedelics.
08:39 But we've also seen a lot of success with phenolethamines.
08:44 MDMA, which is a phenolethamine,
08:47 and shares a lot of the same properties that mescaline has,
08:51 it just really excites us into the potential
08:54 that this molecule has.
08:56 And we're very excited to be championing that.
08:59 And through our laboratory on site,
09:01 we've done a lot of work in investing in a lab
09:05 that can not only service our needs,
09:07 but for others in the industry.
09:08 And that's something that I think sets us apart.
09:11 - Absolutely.
09:13 The biggest changes,
09:14 and let's talk about that for a second,
09:16 that you're seeing in the mental health treatment space,
09:18 because 10, 15, 20, 25 years ago,
09:21 we weren't discussing methods of treatment
09:23 like this at all, right?
09:23 It was really kind of one of those things
09:25 that had a sort of a sort of signia on it,
09:28 where people didn't discuss treatments like these
09:30 as being something that could actually be used.
09:32 So the biggest changes that you're seeing now
09:34 in terms of acceptance, or new methods of treatment,
09:36 or new thinking around that,
09:37 what are you seeing in the industry right now?
09:39 - You know, it's very interesting
09:41 what's going on in the industry.
09:42 And with mescaline in particular,
09:45 which it has this history of being very,
09:50 for a lot of the generation that went before us,
09:52 it was their experience with psychedelics was mescaline,
09:56 through the introduction of the doors of perception.
09:59 And authors like Aldous Huxley,
10:02 and through others in that time period,
10:05 as well as the government's doing research
10:07 into mescaline use.
10:08 And so you have this chunk of information
10:10 that exists in the 30s, 40s, 50s.
10:14 And then when we have the war on drugs take place,
10:18 everything quiets down.
10:19 And for me, it's just amazing,
10:22 and just so invigorating to see
10:25 that this is being picked back up.
10:27 I think we're all intimately aware
10:30 with the mental health challenges
10:31 that we're facing in the world today.
10:33 And the treatments that are out there
10:37 are largely regarded as ineffective or slightly effective.
10:41 And what we're seeing with psychedelic therapies
10:44 is true healing.
10:47 And that is something personally that really motivates me,
10:50 and it makes me excited to continue
10:53 in this kind of pioneering fashion.
10:56 - Absolutely.
10:57 Clara, final question for you
10:58 when it comes to the excitement of this pioneering industry
11:01 and what you're doing in it.
11:02 A thought leadership question for you about your industry.
11:04 As you're moving forward
11:05 and you're starting to see the acceptance
11:06 and discussion around these types of treatments,
11:08 will psychedelics or drugs derived from psychedelics
11:12 ever supplant SSRIs in the dominant treatment paradigm
11:15 as we move forward into the future?
11:16 Do you see that happening?
11:17 - 100%, without a doubt, I see that happening.
11:20 I think this is the, in our lifetime,
11:24 this is gonna be the biggest news story
11:26 is how we've finally learned to harness these medicines
11:31 and to our own benefit
11:33 and to see real change in mental health treatment.
11:36 I think we're at a precipice right now
11:39 where that is truly needed
11:41 and it is for everyone in the world.
11:44 And so it's so exciting to see
11:46 that we've moved through this kind of arc of understanding
11:49 of this very strong medicines.
11:51 And now we're finally moving into a place
11:54 where we can use them and we understand them better
11:57 and we understand their potential.
11:59 And it's very exciting to be at the forefront of that.
12:03 - Absolutely.
12:03 Well, Claire, it's very exciting
12:04 to see what you guys are building.
12:05 Very happy with all of your progress.
12:07 Congratulations on some of the recent achievements
12:09 you've seen and we look forward to talking again soon.
12:12 Thank you so much for joining us here on All Access.
12:14 - Thank you, have a great day.
12:16 (upbeat music)
12:18 (upbeat music)