Psychedelic drugs are increasingly gaining mainstream attention, thanks to their potential to treat various mental health disorders, including depression, anxiety, PTSD, addiction, and others. In the last few years, there has been a surge of interest in the development of psychedelics-based therapies, which has led to the creation of a new market: the psychedelics stock market. This market is still in its early stages, but it is rapidly growing, with more and more companies entering the space.
In this blog post, we will map the psychedelics stock market, exploring the various companies that are leading the charge in this emerging field.
What are Psychedelics?
Before we dive into the psychedelics stock market, let’s first define what we mean by psychedelics. Psychedelics are a class of psychoactive drugs that alter perception, mood, and cognitive processes. They include substances such as LSD, psilocybin (found in magic mushrooms), ayahuasca, and DMT, among others.
Psychedelics have been used for centuries in various cultures for spiritual, medicinal, and recreational purposes. However, they were classified as Schedule I drugs in the U.S. in the 1970s, which made them illegal and severely limited research into their therapeutic potential. In recent years, there has been a resurgence of interest in psychedelics research, with numerous clinical trials showing promising results for treating various mental health disorders.
The Psychedelics Stock Market
The psychedelics stock market is still in its infancy, but it is growing rapidly. According to a report by Data Bridge Market Research, the global psychedelics market is expected to reach $6.8 billion by 2027, growing at a compound annual growth rate (CAGR) of 16.3% from 2020 to 2027. This growth is fueled by the increasing interest in the therapeutic potential of psychedelics, as well as the loosening of regulatory restrictions on their use in clinical settings.
There are currently over 50 public companies involved in the psychedelics space, with a combined market capitalization of over $10 billion. These companies are involved in various aspects of the psychedelics industry, including drug development, clinical research, manufacturing, and distribution.
Let’s take a closer look at some of the major players in the psychedelics stock market.
MindMed
MindMed (NASDAQ: MNMD) is one of the leading companies in the psychedelics space. The company is developing various psychedelic-based therapies, including treatments for anxiety, depression, addiction, and ADHD. MindMed’s most advanced program is Project Lucy, which is studying the use of LSD-assisted therapy for anxiety disorders.
MindMed has a market capitalization of over $2 billion and has seen significant growth in its stock price since going public in March 2021. The company has also attracted high-profile investors, including Shark Tank star Kevin O’Leary.
Compass Pathways
Compass Pathways (NASDAQ: CMPS) is another major player in the psychedelics space. The company is developing a psilocybin-based therapy for treatment-resistant depression, which has been granted Breakthrough Therapy designation by the FDA. Compass Pathways also recently announced a partnership with the mental health advocacy organization NAMI to raise awareness about mental health and psychedelic-assisted therapies.
Compass Pathways has a market capitalization of over $1.5 billion
and discuss other major players in the psychedelics stock market.
Atai Life Sciences
Atai Life Sciences is a biotech company that is focused on developing psychedelic-based therapies for various mental health disorders. The company has a portfolio of over ten different psychedelic compounds, including psilocybin, MDMA, and ketamine, among others. Atai is also investing in research into the underlying biology of mental health disorders to develop more targeted therapies.
Atai has raised over $300 million in funding and has a market capitalization of over $2 billion. The company recently went public through a SPAC merger and has seen significant growth in its stock price.
Field Trip Health
Field Trip Health (NASDAQ: FTRP) is a mental health company that is focused on providing psychedelic-assisted therapies in a clinical setting. The company operates a network of clinics in the U.S. and Canada that offer ketamine-assisted therapy for depression and other mental health disorders. Field Trip is also developing other psychedelic-based therapies, including psilocybin and MDMA.
Field Trip has a market capitalization of over $350 million and has seen significant growth in its stock price since going public in October 2020. The company is also partnering with various organizations to expand access to psychedelic-assisted therapies.
Cybin
Cybin (NEO: CYBN) is a biotech company that is focused on developing psychedelic-based therapies for various mental health disorders. The company is developing a proprietary sublingual film delivery system for psilocybin and is also conducting clinical trials for the use of ketamine-assisted therapy for depression.
Cybin has a market capitalization of over $400 million and has seen significant growth in its stock price since going public in September 2020. The company is also investing in research to understand the underlying biology of mental health disorders.
The Future of the Psychedelics Stock Market
The psychedelics stock market is still in its early stages, but it is growing rapidly. As more research is conducted into the therapeutic potential of psychedelics and regulatory restrictions are loosened, we can expect to see continued growth in the industry.
However, investing in the psychedelics stock market comes with its own set of risks. The industry is still relatively new, and many of the companies in the space are pre-revenue or have limited revenue. Additionally, the regulatory landscape can be uncertain, with different countries and regions having different rules and regulations regarding the use of psychedelics.
Investors should also be aware of the ethical considerations surrounding the use of psychedelics. While these drugs have shown promising results in treating mental health disorders, they are still psychoactive substances that can have significant effects on individuals’ perception and cognition. There are also concerns about the potential for abuse and the need for proper training and supervision in administering psychedelic-based therapies.
Overall, the psychedelics stock market is an exciting new frontier in the biotech and mental health industries. As more research is conducted and the therapeutic potential of these drugs is further realized, we can expect to see continued growth and innovation in the industry. However, investors should be cautious and do their due diligence before investing in the space.