The double-blind, placebo-controlled, crossover-controlled trial will assess varying bolus and constant intravenous doses of DMT in healthy control participants and patients with depression.
As part of the agreement, Algernon will offer cGMP DMT for the trial.
Intellectual property (IP) linked to the clinical usage of DMT that results from the study will be co-owned by the parties.
The company will also own the option to negotiate licences to the IP that is developed by the parties together, as well as the one developed by Yale alone.
A hallucinogenic tryptamine drug, DMT creates effects resembling those of other psychedelics such as LSD and psilocybin.
Algernon will also obtain trial data, which could aid the company in its DMT stroke research programme.
Algernon Pharmaceuticals CEO Christopher Moreau said: “Although the treatment of psychiatric disorders with DMT are not the company’s current focus, we have patents pending on novel forms of DMT which could potentially be used across a broad range of diseases.
“In addition, we believe the data generated from this study may help inform Algernon’s stroke research programme.”
In September this year, the company obtained approval from the Stichting Beoordeling Ethiek Biomedisch Onderzoek in the Netherlands to carry out a Phase I trial of an intravenous formulation of AP-188 (DMT) to treat stroke.
The US Food and Drug Administration provided positive feedback for Algernon’s Phase IIb trial of NP-120 (ifenprodil) for chronic cough treatment in January this year.