Psychedelics Investing Will Just Become The Norm..
By: Andrew Curtin
There was once a time when psychedelic drugs were seen as the thorn in the side of civilisation. How could something that alters ones thoughts, awareness and feelings produce positive outcomes? Most people’s judgement was probably derived from the 1998 psychedelic satirical black comedy Fear and loathing in Las Vegas starring Johnny Depp & Benicio del Toro…It’s a messed up movie, but well worth a watch!
When you hear the likes of Peter Thiel and Tim Ferriss are investing in psychedelic start-ups, it’s probably time to start doing some research.
For some of you that might not know, a growing number of companies have been conducting clinical trials of psychedelic treatments for depression, PTSD and ADHD. And the results? Pretty positive to say the least, check out the video ‘Could Psychedelic Drugs Be A Cure For Depression?‘ to give you some real life case studies. Please don’t try any of this at home!!
Cannabis is still federally illegal in the states. However, the efforts being made by psychedelic companies is on the right side of legality, making growth capital far more accessible from private investors. That being said, it is no surprise that in March of this year, Mind Medicine, Inc. was the first ever psychedelic pharmaceutical company to go public on NEO Exchange based in Toronto. These guys raised $24.2m USD before ever hitting any stock market .
WHEN JOHNSON & JOHNSON GETS INVOLVED..
In 2019, the U.S. Food and Drug Administration (FDA) signed off on Johnson & Johnson’s SPRAVATO™, a nasal spray to be used cooperatively with an oral antidepressant in adults TRD (Treatment-resistant depression) according to PR Newswire. Approving a product like this is gonna attract only one thing…investment!
Brad Loncar, a biotech investor told CNBC ‘A decision like this by FDA is the ultimate signal for investors…it shows that there’s a regulatory path forward for this class of drugs, which subsequently causes a flood of investment in the area’. Last month, Denver residents voted to decriminalise psilocybin, the psychoactive substance found in mushrooms so it is only a matter of time before we see more and more of these FDA approvals.
ONES TO WATCH
London-based mental health company, Compass Pathways is picking up pace..and fast! In 2018, the FDA gave Compass’s psilocybin-based treatment for clinical depression “breakthrough therapy” status.
The firm has got their hands on $58 million in venture capital. Peter Thiel (co-founder of PayPal and a bunch of other impressive companies), Thomas Insel and Paul Summergrad, former director of the U.S. National Institute of Mental Health and former head of the American Psychiatric Association respectively, are among the heavy hitters on the company’s board of advisers.