Israeli biotech company MSICS Pharma said it has raised $3.6 million to advance its work developing medical-grade psilocybin, the active compound in psychedelic mushrooms.
The funding round was led by investors including Fusion VC, GlenRock, Gooday Investments, Eyal Gura, Shani Investments, David Katzin, SGL Acquisitions, Yaniv Rivlin, Calmy, Sagi Ashkevitz, Ariel Leizgold and L&Co.
MSICS says it is the only company in Israel and Europe with an official Health Ministry license for GMP manufacturing of psilocybin for medical purposes. The company operates a cultivation and production facility using proprietary genetics and technology to produce prescription-grade psilocybin while preserving the mushroom’s natural “entourage effect.”
The company also received a grant from the Israel Innovation Authority.
MSICS’ flagship product, MSX-06, is being used in medical protocols for complex conditions including post-traumatic stress disorder, treatment-resistant depression and obsessive-compulsive disorder.
The company was founded by brothers Roei Zerahia, its CEO, and Omer Zerahia, its chief business officer. The two previously led Canndoc, a medical cannabis company now traded on Nasdaq.
MSICS said the funding follows new regulatory momentum in the United States, including an executive order by President Donald Trump directing the FDA to grant fast-track status to psychedelic therapies and expand access for veterans and trauma survivors under the Right to Try framework.
The company is conducting Phase 2 clinical trials in Israel for treatment-resistant depression and obsessive-compulsive disorder. It also plans to launch a large, multicenter clinical trial for PTSD in collaboration with four Israeli hospitals.
MSICS employs about 12 people in Israel. It said the new capital will be used to expand production, accelerate clinical trials and prepare for commercial registration and supply to global markets.