Psychedelics Medicine Fund: The Biggest Players on the Market
The rising rates of mental illness have long been recognized as a serious issue worldwide. In addition, the side effects of existing medications are displeasing for many patients. Against this background, psychedelics have recently emerged as a new potential treatment. According to Research and Markets, the legal psychedelic drugs market, which amounted to a sum of $4.75 billion in 2020, will double by 2027 to $10.75 billion worldwide.
The commercial potential of psychedelics has drawn huge attention from investors. In 2021, the process sped up as investors hoped to gain access to a potential multi-billion dollar market. Let's talk about leading medical companies that treat mental illnesses with the help of psychedelics and the reasons for investors' interest.
Psychedelics Renaissance and the Growth of the Industry
For the first time in 50 years, the interest in the use of psychedelics for the treatment of mental disorders has risen. Research in recent years has provided a better idea of the effects of psychedelics. It has given researchers an optimistic outlook on the prospects for psychedelic-based therapies.
Psilocybin and MDMA have already been proposed for approval. They can become good therapy for various mental health disorders.
British psychiatrist Ben Sessa expects regulators to approve several types of psychedelics by the end of 2022. As a result, patients with psychiatric disorders will have a wide choice of alternative drugs. They’ll be able to build personalized treatment regimens.
The rapid development of the psychedelics market attracted more companies to support medical research. Venture capital firms are funneling their capital into this growing market for several reasons, including the global need for effective treatments for mental illness and widespread public support.
Active Psychedelic Companies
Drug developers’ stocks are traded on the exchange, and they are attracting increased attention from investors. There are a lot of companies on the market; some of them are not approved yet, while some are still in the early stages of development. However, venture capital fund Negev Capital has collected several promising companies that limit the risks of investment.
Atai Life Sciences N.V.
Atai Life Sciences N.V. is a German holding company of numerous psychedelic medical firms. Ten of them focus on drug development programs and researching psychedelic compounds. The other six create tools to support compound and patients support tools development. The company looks for a new way to treat depression, anxiety disorder, and addiction with psychedelic medicine.
Atai was founded in 2018 and went public in June 2021. The company initially announced an offering of 14.286 million shares. Then, it raised more than $258 million from the sale of securities.
The company invests in more than a dozen companies that are testing many technologies and drugs. One of them is psilocybin, a chemical compound found in magic mushrooms. Another is ibogaine, an African plant that ATAI is testing for treating addiction.
The most advanced product is RL-007, a drug for the treatment of schizophrenia spectrum disorders. The second promising project is ATAI's strategic investment with Compass in the development of COMP360. The drug serves as a fast-acting method for the treatment of resistant depression.
Bright Minds Biosciences Inc. hopes to preserve the therapeutic aspects of psychedelics while minimizing side effects. The company is developing a pipeline of medicines to help people with mental health problems caused by a lack of serotonin. It seriously affects emotions, memory, and cognitive function.
In November 2021, Bright Minds went public on the NASDAQ exchange. It proved the legitimacy of its cutting-edge drug development program. The company's team of scientists has developed hundreds of psychedelic compounds. Therapies developed by the company can provide alternatives to opioid medications.
Bright Minds has advanced to toxicology studies allowing for an Investigational New Drug (IND). It plans to begin human trials in the first half of 2022.
BioMind Labs Inc. is a psychedelics company with a huge background and long history of working with psychedelic compounds. Its scientific research began as early as 2006 in Brazil. At its early stage, the company worked on studying the effects of ayahuasca on the brain. During this research, BioMind scientists discovered ayahuasca derivatives. They can help people suffering from neurological and psychiatric disorders. BioMind is targeted to provide accessible and modern treatment. It will allow covering more patients regardless of income. The company’s team of scientists develops the most diversified clinical trials targeting numerous diseases to get fast-track approvals.
The company cooperates with the Department of Neurology at Harvard Medical School. It also works with psychedelic components in other jurisdictions while negotiating with authorities.
The company is testing the use of psychedelic treatment for depression in people with brain injury. Wesana Health went public in May 2021 by listing its shares on the Canadian Stock Exchange. A little later, the company announced a partnership with the World Boxing Council. The company hopes to involve boxers in clinical trials using Sana0013. It will give a better understanding of brain injuries for which there is no FDA-approved treatment. Sana0013 is a psychedelic and psilocybin drug. Wesana aims to help other high-risk groups, such as military veterans and victims of domestic violence.
Canadian nutritional supplement company Psyched Wellness Ltd. is one of the companies included in the world's first launched psychedelic exchange-traded fund. It’s the first company to bring Amanita Muscaria (“magic mushrooms”) to the psychedelic market as a safe product appropriate for human consumption. Psyched Wellness’s product is patented and trademarked.
In early 2021, Psyched Wellness announced that it had identified the therapeutic value of muscimol. It’s the mushrooms' psychoactive ingredient with antioxidant potential. Psyched Wellness is developing a line of extracts, teas, and capsules derived from the mushroom. Products may be useful to reduce stress, relax, and improve sleep.
This first study will provide further insight into the potential health properties of the active ingredient. It will lead to expanded areas of preclinical research to further investigate the therapeutic agent. The launch of the ETF at such an early stage speaks to the excitement of both investors and the medical community.
Psychedelics Future and Possible Legislation
In a world impacted by COVID-19, psychedelic care will be an important tool in treating mental health problems. According to the charity Mind, two-thirds of adults reported worsened mental health during isolation. This situation boosted the process of development and growth of the psychedelics market even more. Therefore, it keeps drawing the attention of authorities and investors.
In 2021, important discoveries were made in medicine and biology. They brought the widespread use of psychedelic drugs closer. Private clinics are beginning to open all over the world. Official authorities’ approval of psychedelics is only a matter of time.
Big players of the market expect a rapid spreading of psychedelic medicine. It will cause the growth of investing in psychedelics as they become more common and accessible.
More medical companies turn toward psychedelics, and new startups appear with promising research works. There is no indication that the surge in investment in psychedelics seen in 2021 will slow down. Rather, the pace is likely to pick up as leading candidates from several large companies approach launch. This will boost the development of the industry and help patients desperate for effective treatment.