04:59 PM EDT, 10/04/2024 (MT Newswires) -- Psyence Biomedical ( PBM ) said Friday it will not proceed with its proposed acquisition of Clairvoyant Therapeutics following the completion of due diligence.

The company is proceeding with its phase 2b clinical study, which uses psilocybin with psychotherapy to treat Adjustment Disorder in palliative care patients diagnosed with life-limiting cancer, Psyence Biomedical ( PBM ) said.

The company said it is expecting the first patient enrollment this quarter and results in H2 2025.

Psyence Biomedical ( PBM ) is also developing a second program aimed at using psilocybin-based therapy to treat Substance Use Disorders, starting with Alcohol Use Disorder, the company said.

The company has secured an exclusive global IP licensing agreement with PsyLabs to support its AUD program, it added.

Subsequently, Psyence Biomedical ( PBM ) has agreed to buy an 11.13% stake in PsyLabs, with the acquisition process undergoing due diligence, according to the company.