Tryp Secures $2.6m Loan to Boost Clinical Development of Psilocin Therapy
Tryptamine Therapeutics has locked in $2.6 million in non-dilutive funding to fast-track clinical trials of its lead psilocin-based therapy, TRP-8803, targeting binge eating disorder and other conditions.
- Secured $2.6m R&D loan facility from Rockford Equity
- Facility repaid via future R&D tax incentives, non-dilutive capital
- Strengthened cash reserves to over $3.8m including pending tax rebate
- Funding to accelerate TRP-8803 clinical trials, including world-first BED study
- 16% interest rate on drawn amounts, flexible $500k tranches
Non-Dilutive Capital Boosts Clinical Momentum
Melbourne-based clinical-stage biotech Tryptamine Therapeutics Limited (ASX, TYP) has secured a $2.6 million research and development loan facility from Rockford Equity Pty Ltd. This non-dilutive capital arrangement is designed to provide financial flexibility as the company advances its proprietary intravenous psilocin formulation, TRP-8803, through critical clinical milestones.
The facility is secured against projected FY26 R&D expenditure and will be repaid from future Australian R&D Tax Incentive rebates. Tryp can draw down in $500,000 increments, with interest accruing at 16% per annum on the outstanding balance. This structure allows the company to accelerate its clinical programs without immediate equity dilution, a notable advantage in the capital-intensive biotech sector.
Strengthened Financial Position
As of 30 June 2025, Tryp reported cash reserves of $3.03 million, which are expected to be bolstered by an $800,000 R&D tax rebate for FY24 activities anticipated this quarter. Combined with the new loan facility, this positions the company with over $3.8 million in accessible funds to support ongoing and upcoming trials.
CEO Jason Carroll highlighted the strategic importance of this funding, noting it will help fast-track the world-first clinical trial of TRP-8803 for adult patients with Binge Eating Disorder (BED), conducted in collaboration with Swinburne University. This trial builds on promising Phase 2a results from a University of Florida study, where TRP-8803 demonstrated an average reduction in binge episodes exceeding 80%.
Broader Clinical Pipeline and Future Prospects
Beyond BED, Tryp is progressing other clinical programs, including Phase 2a trials for fibromyalgia and irritable bowel syndrome using its oral psilocybin formulation, TRP-8802. Positive outcomes from these studies could pave the way for subsequent trials employing TRP-8803, which offers advantages such as rapid onset and controlled duration of psychedelic effects.
The infusion-based delivery of psilocin aims to overcome limitations of oral psilocybin, potentially improving patient experience and treatment efficacy. However, the relatively high interest rate on the loan facility underscores the importance of timely clinical progress and successful outcomes to ensure sustainable financial health.
Navigating Risks and Market Expectations
While the capital injection provides a runway to advance key milestones, investors should remain mindful of the inherent risks in clinical-stage biotech development, including regulatory hurdles, trial outcomes, and market acceptance. The company’s forward-looking statements emphasize these uncertainties, reflecting the typical volatility of innovative therapeutic ventures.
Overall, this funding deal marks a pivotal moment for Tryp, enabling it to maintain momentum in a competitive and rapidly evolving psychedelics space.
Bottom Line?
Tryp’s new funding deal sets the stage for accelerated clinical progress, but the clock is ticking on translating promise into proof.
Questions in the middle?
- How will the 16% interest rate impact Tryp’s cash flow if draws are extended?
- What are the timelines and expected readouts for the BED and other TRP-8803 trials?
- Could positive trial results unlock further non-dilutive funding or partnerships?
