Beckley Psytech Financial Model

Three-generation drug development platform:

• 1st Generation: Innovative formulations / novel applications of well-characterised psychedelic agents (compound undisclosed - "Confidential"). PoC trial in patients targeted with current raise.
• 2nd Generation: 5-MeO-DMT - short-acting psychedelic, first-in-man Phase 1 trial targeted. Positioned on: short session length (resource efficiency vs. psilocybin), early-mover IP, data exclusivity, unique receptor binding profile.
• 3rd Generation: New Chemical Entities (NCEs) - composition-of-matter IP, potential safety/clinical advantages. Pre-clinical / discovery stage.
• Beckley Deep Labs: Advanced research division; AI/ML for clinical development, novel applications, NCE signal-finding, pioneering partnerships.

Value proposition: leverage 20+ years of Beckley Foundation psychedelic research IP and clinical relationships (50+ publications, 1st brain imaging LSD/psilocybin, 1st psilocybin TRD study) to de-risk and accelerate development.

Comparator precedents cited:

• Epidiolex (GW Pharma, cannabidiol): FDA-approved, $2bn peak sales forecast.
• Spravato (J&J, esketamine): FDA-approved, $1.35bn peak sales forecast.

• 1 in 4 people globally suffer from neurological and psychiatric disorders.
• $6 trillion anticipated cost of treating global mental illness by 2030.
• 33% of patients resistant to available treatments (treatment-resistant depression etc.) - defines addressable clinical niche.
• No explicit TAM/SAM/SOM breakdown provided.
• Psychedelic sector characterised as emerging with strong macro tailwinds: Bloomberg, FT, Forbes, Sifted, Wired coverage cited (Feb 2018 – Jun 2020).

• Licensing / partnering deals post-Phase 2/3 data.
• Potential acquisition (precedent: Beckley Canopy Therapeutics sold to Canopy Growth in 2019 at 3.3x return in 13 months).
• Future royalties on commercialised medicines.
• Donation of a share of future revenues to the non-profit Beckley Foundation is committed - reduces net revenue available to investors.

• Clinical efficacy data from prior academic studies (not Beckley Psytech sponsored, but from the Beckley Foundation and academic partners):
• Psilocybin + tobacco addiction (2014): 80% smoke-free.
• Ayahuasca + depression (2015): 82% reduction in depression scales.
• Psilocybin + treatment-resistant depression (2016, Beckley Foundation): 63% remission rates.
• Psilocybin + existential distress (2016): 80% response rate.
• Track record: Beckley Canopy Therapeutics - founded 2018, sold 2019 to Canopy Growth, >3.3x return for investors in 13 months.
• No revenue, no patients enrolled in Beckley Psytech-sponsored trials disclosed.

Competitive positioning:

• 1st Generation program: differentiated application, market segment, treatment model; data and market exclusivity protections (details confidential).
• 2nd Generation (5-MeO-DMT): early mover, strong IP opportunities, shorter session length = significant cost/resource advantage over psilocybin (which requires 6–8 hr supervised sessions); data exclusivity potential.
• 3rd Generation NCEs: composition-of-matter patents = strongest IP protection tier.
• Moat sources: Beckley Foundation's 20+ year research head-start, 50+ publications, KOL relationships (Oxford, Imperial, Johns Hopkins), proprietary data/IP pipeline from Foundation, and formulation IP design.
• Main competitive risks: COMPASS Pathways (psilocybin, NASDAQ-listed), MindMed, Numinus, ATAI Life Sciences - all emerging competitors in psychedelic pharma space (not discussed in deck but sector context from Slide 11 media references).

Team:

• Cosmo Feilding Mellen - Director / CEO (ex-Beckley Canopy, Canopy Growth)
• Lady Amanda Feilding - Director / Chair SAB (Beckley Foundation founder)
• Marc Wayne - Chairman (ex-Beckley Canopy, Canopy Growth)
• Dr. Steve Wooding MBBS MBA FFPM - Director / CSO (ex-Beckley Canopy, J&J)
• Michael Norris FCMA - Director / CFO (ex-Beckley Canopy, Sensyne Health)
• Tim Mason MSc - CDO (ex-Beckley Canopy, Allergan)
• Dr. Fiona Dunbar - Chief Medical Advisor (ex-J&J)
• Kalpana Sawant - Director Clinical Operations (ex-Biogen)
• Becky Hutchinson MBA - Commercial Director (ex-J&J)
• Ilgi Kim - Corporate Board Advisor (ex-Capita, Accenture)

Scientific Advisory Board: Prof Guy Goodwin (Oxford), Fred Reinhold (King's College London), Prof Matthew Johnson (Johns Hopkins), Dr Robin Carhart-Harris (Imperial College), Prof Joanna Neil (Manchester), Dr Mike Emanuel (Sinto Pharma).

Funding ask: $18m, Autumn 2020.

Use of funds:

1. 1st Generation: Conduct Proof-of-Concept trial in patients.
2. 2nd Generation: Complete First-in-Man Phase 1 trial in 5-MeO-DMT.
3. 3rd Generation: Advance internal NCE development + in-licensing opportunities.
4. Launch advanced research programs through Beckley Deep Labs.

No prior round size or pre-money valuation disclosed.

• Archetype + why: Pre-revenue biotech / clinical-stage milestone model with a probability-weighted NPV (rNPV) framework. This is standard for clinical-stage pharma/biotech with no revenue - value is entirely driven by probability-adjusted expected value of each pipeline asset clearing successive clinical gates, culminating in licensing/acquisition or royalty streams. The team's prior exit (Beckley Canopy → Canopy Growth, 3.3x in 13 months) further supports an M&A exit scenario as a primary value crystallisation event.

• Forecast horizon & granularity:
• Clinical spend (cash burn): Monthly for first 24–36 months (runway model against $18m raise).
• rNPV / milestone valuation: Annual, 10–15 year horizon to capture Phase 1 → Phase 2 → Phase 3 → approval → licensing/royalty or exit.

• Key drivers & assumptions:
• Raise amount: $18m.
• Programs in scope: 1st Gen (confidential), 2nd Gen (5-MeO-DMT), 3rd Gen NCEs, Deep Labs.
• Clinical trial costs:
• PoC Phase 1/2 (1st Gen): ~$3–6m; small N psychedelic trials typically $2–8m.
• Phase 1 FIM (5-MeO-DMT): ~$3–5m; healthy volunteer Phase 1.
• NCE preclinical/discovery: ~$2–4m.
• Deep Labs / overhead: ~$3–5m over runway period.
• Timeline:
• PoC readout (1st Gen): 18–24 months post-funding.
• FIM Phase 1 readout (5-MeO-DMT): 18–30 months post-funding.
• NCE IND filing: 36–48 months.
• Probability of success per stage (industry standard):
• Phase 1 success: ~70–80%.
• Phase 2 success: ~40–50% (psychedelics may be higher given efficacy signals).
• Phase 3 success: ~50–60%.
• Regulatory approval: ~85% post Phase 3.
• Peak sales / licensing value:
• Comparator anchors: Epidiolex $2bn, Spravato $1.35bn.
• Lead program peak sales: $500m–$1.5bn depending on indication and label breadth.
• Royalty rate on out-licensing: 8–15% of net sales.
• Deal structure at licensing: upfront + milestones + royalties, or full acquisition.
• Discount rate: 15–20% (biotech risk premium; pre-revenue clinical stage).
• Revenue share to Beckley Foundation: ~5% of net revenues (commitment made in deck but quantum not stated).
• Headcount / burn rate: ~8–12 FTE currently; ~$3–5m/year G&A/ops.
• Runway: $18m raise yields ~3–4 years depending on trial costs.

• Scenarios (Base / Bull / Bear):
• Bear: 1st Gen PoC fails, 5-MeO-DMT Phase 1 delayed, NCE pipeline deprioritised. Company raises a bridge or winds down. rNPV near zero. Exit via acqui-hire or IP sale only.
• Base: 1st Gen PoC succeeds and 5-MeO-DMT Phase 1 positive; raises Series B at higher valuation; M&A interest. rNPV $100–300m.
• Bull: Both lead programs succeed, compelling data triggers competitive licensing/M&A deal at Spravato-level peak sales precedent ($1.35bn+). rNPV $400–800m; early exit akin to Beckley Canopy precedent but at much larger scale.
• Flex variables: PoC success probability, time to data readout, deal terms, competitive landscape, regulatory timeline.

• Required sheets / outputs:

1. Assumptions dashboard - all key inputs in one place, flagged vs.
2. Cash burn / runway model - monthly, by program (1st Gen, 2nd Gen, 3rd Gen, Deep Labs, G&A). Shows when $18m is exhausted and next financing trigger.
3. Pipeline rNPV model - per asset: peak sales estimate × probability-adjusted royalty/proceeds × discount factor = rNPV. Sum across portfolio = company rNPV.
4. Milestone timeline - Gantt-style: clinical stages, key binary events (PoC readout, Phase 1 top-line, IND, etc.) tied to cash spend.
5. Sensitivity table - rNPV vs. peak sales assumption and discount rate (2D table); rNPV vs. clinical success probability.
6. Exit / M&A scenario - implied acquisition price at various revenue multiples vs. comparable deals (Epidiolex/Spravato benchmarks, Beckley Canopy 3.3x precedent).
7. Returns waterfall - investor return at various exit valuations vs. $18m entry (no cap table or liquidation prefs disclosed, so simplified).