Mark Cuban Cost Plus Drug Co. will lead research teams laying the groundwork for a domestically manufactured ibogaine product, part of an HHS effort to develop the psychedelic as a potential treatment for post-traumatic stress disorder and other serious mental illnesses, including among veterans.
HHS committed up to $4.9 million to the effort through the Advanced Research Projects Agency for Health, the department announced Nov. 12. The Cost Plus-led teams will build the regulatory, clinical, chemical and engineering foundation for a single-molecule ibogaine hydrochloride product. Separately, Beond will generate clinical data on the drug’s safety, dosing, efficacy and durability. All awardees will make their research data open source.
HHS Secretary Robert F. Kennedy Jr. unveiled the awards alongside Department of Veterans Affairs leaders the day after Veterans Day. The funding will support investigational new drug applications for future U.S. clinical trials, secure clinical-grade ibogaine and build domestic manufacturing processes.
The initial commitment spans five years, and each award depends on teams hitting accelerated research milestones. The funding does not cover patient treatment or human-subject research, and it does not authorize clinical trials. ARPA-H plans future awards to study ibogaine for substance use disorders, including opioid use disorder.
“Veterans have told us ibogaine changed their lives. Their experiences demand serious scientific investigation,” Mr. Kennedy said.
Al Bugazia, MD, senior advisor for special projects at ARPA-H, is leading the effort. Dr. Bugazia said reports of successful ibogaine treatments are too promising to ignore.
HHS noted the drug carries serious risks, including potentially life-threatening heart rhythm problems, and said future studies must include participant screening, cardiac monitoring and independent safety oversight. If ibogaine wins FDA approval, HHS aims to make it available at production cost plus a fair margin.
In a separate move, the National Institute of Mental Health posted a $20 million funding opportunity to build a research network studying rapid-acting psychotropic drugs such as ketamine, esketamine and psilocybin. Recipients will be named in summer 2027.
The announcements advance President Donald Trump’s April directive to accelerate research into psychedelic treatments for serious mental illness.
