College student discovers mysterious fungus that eluded LSD's inventor
Periglandula clandestina was discovered by WVU junior and environmental microbiology major Corinne Hazel. She found the species growing on morning glory plants (family Convolvulaceae) while working in the lab with WVU mycologist Daniel Panaccione. Hazel was initially studying how morning glories disperse protective chemicals called ergot alkaloids through their roots. These chemicals are made exclusively by fungi and they are often found growing on grains. Morning glories live in symbiosis with the fungi that produce the same ergot alkaloids. While studying the alkaloids' dispersal on the morning glories in the lab, Hazel saw evidence of a fungus.
[ Related: Lion's mane mushroom shows promise in boosting brain cell growth. ]
'We had a ton of plants lying around and they had these tiny little seed coats,' Hazel said in a statement. 'We noticed a little bit of fuzz in the seed coat. That was our fungus.'
She and the team at the lab prepared a DNA sample from the suspected fungus and sent it away for genome sequencing to learn more. The sequencing confirmed that this was, in fact, a new species and the sequence is now in a gene bank with Hazel's name on it.
'Sequencing a genome is a significant thing,' Panaccione said in a statement. 'It's amazing for a student.'
These same ergot alkaloids were modified by Swiss chemist Albert Hofmann when he invented LSD in the late 1930s. Hoffman hypothesized that a fungus in morning glories would produce alkaloids similar to those in LSD, but the exact species remained a mystery until now.
'Morning glories contain high concentrations of similar lysergic acid derivatives that give them their psychedelic activities,' Panaccione said. 'This inspired Hofmann and others to investigate morning glories for the presence of a hidden fungus related to the ergot fungus that might be the source of these chemicals. They found very similar chemicals, but they could never find the fungus itself.'
Ergot alkaloids can be poisonous to humans and livestock and can have unwanted side effects, when used in the incorrect dose. However, some clinicians do use them to treat migraines, dementia, uterine hemorrhaging, and Parkinson's disease. According to the team, the newly discovered Periglandula clandestina is highly efficient at making ergot alkaloids in large quantities, which could make it useful in future pharmaceuticals.
[ Related: A hunk of cheese is a perfect playground for fungal antibiotics. ]
'Many things are toxic. But if you administer them in the right dosage or modify them, they can be useful pharmaceuticals,' Panaccione explains. 'By studying them, we may be able to figure out ways to bypass the side effects. These are big issues for medicine and agriculture.'
Matt Kasson, a WVU mycologist who was not involved in the study, tells Popular Science, 'Many fungi live in close association with their hosts and can't be easily cultured in vitro. As such, the successful cultivation of these fungi is a huge step forward for understanding their biology.'
The name Periglandula clandestina is an homage to just how well it has eluded scientists for nearly a century.
'I think that's the perfect name,' Panaccione said. 'And I love that we did this project together. Corinne [Hazel] has a ton of talent. It's about students recognizing the opportunities, seizing them and having the skill and the brain power to bring this work to fruition.'
Going forward, Hazel is studying the most effective ways to culture this slow-growing fungus. She is also interested in whether other morning glory species may also have ergot alkaloids from a fungal symbiote that are still waiting to be discovered.
'I'm lucky to have stumbled into this opportunity,' Hazel said. 'People have been looking for this fungus for years, and one day, I look in the right place, and there it is. I'm very proud of the work that I've done at WVU.'
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These forward-looking statements are based on Compass's current expectations and speak only as of the date hereof. References 1. For the definition of classic psychedelic, see Vollenweider, F.X. and Smallridge, J.W., 2022. Classic psychedelic drugs: update on biological mechanisms. Pharmacopsychiatry, 55 (03), pp.121-138. 2. Statement on file from the DSMB Chair, dated June 19, 2025 COMPASS PATHWAYS PLC Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share and per share amounts) (expressed in U.S. Dollars, unless otherwise stated) June 30, 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 221,881 $ 165,081 Restricted cash 379 389 Prepaid expenses and other current assets 54,143 35,821 Total current assets 276,403 201,291 NON-CURRENT ASSETS: Operating lease right-of-use assets 4,341 2,006 Deferred tax assets 4,290 3,774 Long-term prepaid expenses and other assets 8,502 6,595 Total assets $ 293,536 $ 213,666 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 10,925 $ 12,283 Accrued expenses and other liabilities 10,370 14,495 Debt, current portion 7,982 5,513 Operating lease liabilities - current 2,051 1,725 Total current liabilities 31,328 34,016 NON-CURRENT LIABILITIES Debt, non-current portion 22,951 24,652 Operating lease liabilities - non-current 2,304 303 Warrant liabilities 74,398 — Total liabilities $ 130,981 $ 58,971 SHAREHOLDERS' EQUITY: Ordinary shares, £0.008 par value; 93,586,348 and 68,552,215 shares authorized, issued and outstanding at June 30, 2025 and December 31, 2024, respectively 946 702 Additional paid-in capital 767,190 704,919 Accumulated other comprehensive loss (14,582 ) (16,194 ) Accumulated deficit (590,999 ) (534,732 ) Total shareholders' equity 162,555 154,695 Total liabilities and shareholders' equity $ 293,536 $ 213,666 Expand COMPASS PATHWAYS PLC Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) (in thousands, except share and per share amounts) (expressed in U.S. Dollars, unless otherwise stated) Three Months ended June 30, Six months ended June 30, 2025 2024 2025 2024 OPERATING EXPENSES: Research and development $ 30,325 $ 29,069 $ 61,205 $ 53,970 General and administrative 12,608 14,253 31,344 27,925 Total operating expenses 42,933 43,322 92,549 81,895 Loss from operations: (42,933 ) (43,322 ) (92,549 ) (81,895 ) OTHER INCOME (EXPENSE), NET: Fair value change of warrant liabilities (2,540 ) — 16,920 — Benefit from R&D tax credit 4,287 3,709 12,735 6,810 Interest income 1,898 2,408 4,284 4,668 Foreign exchange gains (losses) 2,349 225 4,482 (558 ) Interest expense (1,151 ) (1,112 ) (2,275 ) (2,210 ) Other (expense) income (176 ) 167 627 295 Total other income, net 4,667 5,397 36,773 9,005 Loss before income taxes (38,266 ) (37,925 ) (55,776 ) (72,890 ) Income tax expense (137 ) (176 ) (491 ) (398 ) Net loss $ (38,403 ) $ (38,101 ) $ (56,267 ) $ (73,288 ) Net loss per share attributable to ordinary shareholders: basic and diluted $ (0.41 ) $ (0.56 ) $ (0.62 ) $ (1.11 ) Weighted average ordinary shares outstanding: basic and diluted 93,341,594 68,371,139 91,278,385 66,296,658 Other comprehensive loss: Foreign exchange translation adjustment 1,729 81 1,612 45 Comprehensive loss $ (36,674 ) $ (38,020 ) $ (54,655 ) $ (73,243 ) Expand