# Beckley Psytech Financial Model

Clinical-stage psychedelic drug development platform advancing a pipeline of psychedelic compounds (psilocybin, 5-MeO-DMT, NCEs) as licensed pharmaceutical medicines for neuropsychiatric disorders.

- Canonical: https://finamodel.com/startups/beckley-psytech
- Excel download: https://finamodel.com/startup-models/beckley-psytech.xlsx
- Category: Biotech/Pharma
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $186M
- Founded: 2020
- Geography: UK-incorporated (Beckley Psytech Ltd); research partnerships globally (Oxford, Imperial, Johns Hopkins, Manchester).
- Customer: B2B2C

## About the company

Beckley Psytech develops psychedelic medicines through three generations: reformulations or new applications of established agents, short-acting 5-MeO-DMT, and novel chemical entities. Beckley Deep Labs supports clinical development, applications, signal-finding, and partnerships with AI and machine learning.

The company draws on more than 20 years of Beckley Foundation research, including over 50 publications and pioneering brain-imaging and treatment-resistant-depression studies. Its investment case emphasises shorter 5-MeO-DMT sessions, early-mover IP, data exclusivity, and future composition-of-matter protection rather than a current commercial product.

Revenue is expected from partnering or licensing after Phase 2/3 data, future royalties, or acquisition; a share of commercial proceeds is committed to the Beckley Foundation. The company reports no sponsored-trial patients or revenue. The model should forecast trial spend, clinical probabilities, deal milestones, royalties, and runway.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

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.

## Market

- 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).

## Revenue model

- 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.

## Traction & metrics

- 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.

## Competition / moat

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 & funding ask / use of funds

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.

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## Recommended financial model

- **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).

## Frequently asked questions

### Is the Beckley Psytech financial model free?

Yes. The Beckley Psytech model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.