Produced in partnership with our friends at Psychedelics Today

By Jack Gorsline

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In this week's Psychedelic Policy briefing, investigative reporter and PSA Founder Jack Gorsline examines the shifting legal and commercial landscape surrounding psychedelic compounds in the United States, including new state funding in Texas, a record-breaking pharmaceutical acquisition, a tragic case in Florida, and tribal opposition to federal mescaline manufacturing applications.

Texas Ibogaine Initiative Gets Additional State Funding for Clinical Trials 

Phase 1 clinical trials have officially launched under the Texas Ibogaine Initiative, with state officials reaffirming their commitment to the research program established by Senate Bill 2308. Lawmakers originally envisioned a public-private partnership to finance the trials, but a private backer never materialized. Consequently, per sources close to the Texas Legislature, the Lone Star State will use their supplemental budget to reimburse clinical trial costs, supplementing the original $50 million state allocation.

The ibogaine research builds upon the precedent set by House Bill 1802, which authorized Texas's first state-funded study on psilocybin therapy for veterans experiencing PTSD. Through this latest legislative effort, the state aims to gather the clinical data necessary to evaluate ibogaine as a treatment for opioid use disorder, PTSD, traumatic brain injuries, and other complex psychological and neurological conditions. The studies are currently underway at UTHealth Houston and the University of Texas Medical Branch, utilizing the newly appropriated state funds while exploring the possibility of a future federal partnership.

Eli Lilly Buys Atai-Beckley for Up To $3.8 Billion 

Psychedelic Alpha reported on July 16 that Eli Lilly and Company. announced an acquisition of psychedelic drug developer Atai-Beckley Sciences for up to $3.8 billion, with $2.8 billion paid upfront. Eli Lilly is currently the world's largest pharmaceutical company. This buyout exceeds the previous record set when Otsuka acquired Transcend Therapeutics for $1.225 billion.

Atai-Beckley's lead pharmaceutical candidate is an intranasally administered 5-MeO-DMT compound that is currently in Phase III clinical trials. Atai-Beckley formed from a merger between Atai Life Sciences, backed by Peter Thiel and Christian Angermayer, and Beckley Psytech, founded by Amanda Feilding.

The acquisition follows several federal agency announcements related to psychedelics. On July 14, the FDA issued final guidance on clinical investigations for psychedelic drugs, detailing trial populations and safety assessments. In April, President Trump issued an executive order to accelerate treatments for severe mental illness. The FDA has also opened registration for a Sept. 14 public hearing at its Maryland office to collect feedback on supervised psychedelic therapy. The Department of Veterans Affairs and the Department of Health and Human Services recently signed a memorandum of understanding to collaborate on research and the potential rollout of FDA-approved psychedelic treatments for veterans.

Patient Death in Miami Beach Linked to MDMA. Ketamine, and Dr. Samuel Lee

Authorities have charged 44-year-old Dr. Samuel Lee with manslaughter in connection with a participant's death at a Miami Beach psychedelic wellness retreat last year. Dr. Samuel Lee has pleaded not guilty and requested a jury trial regarding the Feb. 10, 2025, death of Tina Sodhi. As the case proceeds, prosecutors are petitioning to legally bar Lee from practicing medicine. The fatal incident occurred during a three-day "Heart Protocol" hosted by Sabia Wellness at a residential property, which Sodhi paid $2,000 to attend. According to court filings, the unregulated sessions utilized a combination of ketamine, a legal dissociative anesthetic, and MDMA, a federally prohibited substance.

Sodhi was later discovered unresponsive in a rooftop sauna. The Miami-Dade County medical examiner concluded that she died from severe dehydration triggered by the combination of drugs, extended heat exposure, and a preparatory cleansing regimen. To evaluate the case, Miami Beach police consulted an independent medical expert who determined that Lee's administration of the retreat represented an extreme and unjustifiable departure from standard clinical safety measures. Richard Cooper, legal counsel for Sabia Wellness, claimed in a statement following Lee’s arrest that state prosecutors have recognized his client was “not culpable in this terrible tragedy.” However, court documents obtained by CBS News Miami reveal that Sabia Wellness founder Arianna Varin also  participated in the Heart Protocol Ceremony in question.

Diné Nation Teesto Chapter Urges DEA to Block Mescaline Research 

The Azee' Bee Nahagha' of Diné Nation”s Teesto Chapter has formally requested the Drug Enforcement Administration deny an application from Benuvia Operations, LLC to manufacture mescaline. In a July 16 letter, ABNDN Teesto Chapter President Hershel W. Clark highlighted that expanding commercial production of synthetic mescaline poses a direct health threat. The chapter argues this violates federal protections for traditional peyote use under the American Indian Religious Freedom Act Amendments of 1994.

"We are deeply troubled about the expanding commercial mescaline manufacturing through synthetic and pharmaceutical companies,” wrote Clark.

"Not only does this raise concerns about the future of peyote, but it poses a direct health threat and is a violation of the federal protection of peyote for federally recognized tribes."

Benuvia applied in April 2026 to bulk manufacture controlled substances including mescaline, ibogaine, and psilocybin. Clark also pointed out in his letter that the DEA advanced the application without conducting mandated government-to-government consultations with the Navajo Nation, the National Congress of American Indians, or the Native American Church.

Note: This article was originally published by Psychedelics Today, and was produced in partnership with Psychedelic State(s) of America, a nonprofit-sponsored news organization dedicated to rigorous independent psychedelic journalism. Learn more about PSA’s Media Partnerships Program and donate to PSA’s Psychedelic Writers Guild Media Fund.