Can EEG Brain Entropy Biomarker Unlock Psychedelic Therapy’s Full Potential?

A New Frontier in Precision Psychiatry

Tryptamine Therapeutics Limited (ASX – TYP) has announced a landmark collaboration with internationally renowned neuroscientists Professor Robin Carhart-Harris and Professor Pedro Mediano from Imperial College London. The partnership aims to develop a proprietary electroencephalogram (EEG)-based biomarker platform that measures brain entropy, a novel physiological indicator of neural flexibility, to guide and optimize treatment with Tryptamine’s lead psychedelic drug candidate, TRP-8803.

This biomarker initiative is grounded in the Entropic Brain Hypothesis, pioneered by Professor Carhart-Harris, which posits that psychedelics increase the brain’s entropy, or variability in neural activity, thereby enhancing cognitive flexibility and enabling therapeutic breakthroughs in mental health disorders. By capturing real-time EEG data, the platform seeks to provide clinicians with objective, quantitative measures of brain states during treatment, moving beyond traditional subjective symptom assessments.

Harnessing EEG and Machine Learning

The collaboration will integrate advanced machine learning algorithms with closed-loop EEG monitoring to identify and modulate the optimal therapeutic window for TRP-8803 infusion. This dynamic, dose-responsive biomarker could allow clinicians to tailor dosing in real time, improving patient outcomes and potentially accelerating regulatory approval processes. Notably, trials incorporating biomarkers in central nervous system treatments have historically shown significantly higher success rates in gaining regulatory endorsement.

Tryp has already gathered promising EEG data from its Phase 1b trial and animal studies, demonstrating that TRP-8803 induces high brain entropy states consistent with the hypothesis. The upcoming clinical trial for binge eating disorder will further enrich the dataset, supporting the biomarker’s development and validation.

Strategic and Commercial Implications

Beyond clinical benefits, the biomarker platform positions Tryp as a psychiatric platform company rather than a single-drug developer, potentially unlocking premium valuation multiples. The intellectual property generated under this agreement will be owned by Tryp, including algorithms and device designs, strengthening its competitive moat.

Management expressed optimism about the collaboration’s transformative potential. Professor Carhart-Harris highlighted the biomarker’s ability to translate complex neuroscience into practical clinical tools, while CEO Jason Carroll emphasized the fusion of subjective patient outcomes with objective, data-driven biomarkers to advance mental health care.

With initial funding secured from Tryp’s cash reserves and R&D incentives, the biomarker development program is set to commence in September 2025, marking a critical step toward regulatory-grade physiological markers in psychiatry.