FSD Pharma Inc (NASDAQ:HUGE) (CSE:HUGE) has notified Health Canada it will forfeit the licenses of its wholly-owned subsidiary FV Pharma Inc and suspend all activities within 30 days of the notification date.
In a statement Thursday, the company said it has begun the process of liquidating all FV Pharma assets, including the sale of the company’s medical cannabis production facility in Cobourg, Ontario.
CEO Dr Raza Bokhari said the decision to shutter the subsidiary is in the best interests of shareholders as the company now focuses on advancing its lead compound FSD201 to treat hospitalized coronavirus (COVID-19) patients and expanding its overall drug pipeline.
Bokhari said the company is actively working to submit an Investigational New Drug Application (IND) to the US Food and Drug Administration to use FSD201 as a way to reduce lung inflation caused by small proteins called cytokines that are central to the “cytokine storm” phenomenon, where the body starts to attack its own cells rather than just fighting off the SARS-CoV-2 virus.
“We are hopeful to initiate the Phase 2 clinical trial before the end of this year and remain cautiously optimistic that our study may improve treatment outcome for COVID-19 patients," he said.
FSD Pharma said it is not making any express or implied claims that its product has the ability to eliminate, cure or contain COVID-19 (or the SARS-2 coronavirus) at this time.
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