In this week’s edition of InnovationRx, we look at the Trump administration’s moves on medical marijuana and psychedelics, a new partnership, a brain implant deal, and more. To get it in your inbox, subscribe here.

Last week, the Trump administration reclassified marijuana from a Schedule I to a Schedule III drug in states that have licensed it for medical purposes. Acting Attorney General Todd Blanche said that the Justice Department will hold a hearing in June about reclassifying marijuana generally as a Schedule III drug, treating it more like anabolic steroids than heroin.

The move follows a December executive order from the president directing then-Attorney General Pam Bondi to complete the rulemaking process for this change, which had begun under the Biden administration. It also comes on the heels of an executive order to accelerate research and access to psychedelic drugs for the treatment of mental illness.

The actions don’t legalize these drugs, though they do potentially reduce penalties and enforcement priorities for any violation of federal laws. For medical marijuana, this likely ends up with states being the de facto primary regulator.

For psychedelics, the executive orders allocate research money and direct the FDA to give drugmakers access to programs that could reduce approval times. As Forbes contributor Joshua Cohen notes, “with more regulatory guidance imminent and an administration that appears enthused about prospects for psychedelics, it’s possible we’ve entered a new era.”

Mark Cuban’s Cost Plus Drugs And Humana In Deal To Take On Employer Drug Costs

On Monday, Mark Cuban’s Cost Plus Drug Company and Humana’s CenterWell Pharmacy confirmed they have formed a partnership “to develop new end-to-end employer prescription solutions.”

Humana, which is best known as a provider of Medicare Advantage health insurance for millions of older adults, also operates the fast-growing CenterWell health services business that includes pharmacy, specialty pharmacy and related distribution. CenterWell contributed more than $22 billion in revenue to Humana’s total sales last year of $129.6 billion, according to the insurer’s most recent financial report.

The two companies said their collaboration is “focused on discounted prescription and delivery services,” though they didn’t disclose financial terms.

As part of the collaboration, CenterWell Pharmacy, which employs more than 500 pharmacists who provide around-the-clock patient support, will be a pharmacy partner of Cost Plus Drugs. In addition, Cost Plus Drugs digital pharmacy’s software-as-a-service solution, SwiftyRx, will be used by CenterWell Pharmacy for its medication order intake operations.

Read more here.

Deal of the Week

Cambridge, MA-based startup Axoft raised a new $55 million investment led by C.P. Group Innovation, bringing the company’s total funding to more than $63 million. No valuation was disclosed. Axoft is developing implantable brain-computer interfaces, which are made from novel soft materials the company says are more biocompatible than conventional implants. The devices capture high-resolution neural data for patients with neurological disorders, which enables doctors to better diagnose and treat them. The company was cofounded in 2021 by CEO Paul Le Floch, a Forbes 30 Under 30 alumnus. With the new capital, Axoft will expand its clinical trials as it moves toward FDA approval, and also build a factory to scale production of its implants. (Forbes previously profiled the company when it raised its seed round.)

WHAT WE’RE READING

New research affirms the conventional wisdom: Yes, you should feed a cold–it primes the immune system for action.

Dermatology company Veradermics reported positive results in a clinical study of its baldness-reversing drug.

A study from the Mayo Clinic found that its AI cancer detection system found signs of pancreatic cancer up to three years before conventional diagnosis.

Proposed regulatory changes could slash federal benefits for disabled adults with conditions such as Down syndrome or dementia who live with their parents or adult children.

A study published this week found that delaying hepatitis B vaccination after birth increases infection rates among newborns and significantly raises the cost of their healthcare.

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