Diamond Therapeutics Inc., a drug development company focused on low-dose psychedelic-derived therapies for use in the treatment of mental health, is pleased to announce a strategic investment round led by First Avenue Ventures Life Science Fund I (FAV LS Fund I), a multimillion-dollar life science fund with a focus on supporting research developed at the University of Alabama at Birmingham (UAB).

Proceeds from the fund’s investment will support Diamond’s collaboration with UAB on an investigator-led clinical trial of low-dose psilocybin to treat demoralization. The study has received FDA authorization. Noted UAB psychedelic researcher Dr. Peter Hendricks will be the principal investigator.

FAV LS Fund I is dedicated to investing in early-stage drugs, therapies and devices developed at UAB and in Birmingham.

“We are delighted to support Diamond in their important and innovative work with UAB and Dr. Peter Hendricks,” says fund manager Mike Goodrich. “Our investment in Diamond and UAB’s pioneering study of the effects of low doses of psilocybin on demoralization has the potential to offer new hope to the many people suffering from mood disorders.”

“We are most grateful for First Avenue’s support. The work we are doing with Dr. Hendricks and UAB is the first of its kind. There are no other studies examining the effects of psychedelics on demoralization. The fund’s support will help advance our work to the next level, bringing us closer to our goal of offering patients new and better treatments.”

Judith Blumstock, CEO and Founder of Diamond

About Diamond 

Diamond Therapeutics is a Toronto-based psychedelic pharmaceutical company. Our mission is to develop new and better drugs for mental health conditions by unlocking the promise of psychedelic compounds. Diamond’s focus is developing and commercializing sub-perceptual, non-hallucinogenic treatments that hold potential for use across a broad patient cohort — maximizing the positive impact better drugs can have on the global mental health crisis.

About First Avenue Ventures

The mission of First Avenue Ventures is to help grow the Birmingham entrepreneurial ecosystem. To that end, First Avenue launched the First Avenue Ventures Life Science Fund I. The multi-million-dollar Fund aims to invest in early-stage drugs, therapies, and devices, with a particular focus on research developed at the University of Alabama at Birmingham. By providing financial and human capital, the Fund hopes to generate and scale local life science activity and to drive momentum in the broader entrepreneurial ecosystem.