Companies supplying psychedelic compounds through cultivation, chemical synthesis and biosynthesis for medical research and drug development.

Companies building a patent portfolio of novel analogs and derivatives of first-generation psychedelics and new drug delivery mechanisms. 

Companies conducting research on psychedelic compounds and developing novel therapeutics.

Companies operating clinics and treatment centers to deliver psychedelic therapies.

Companies operating digital platforms to deliver psychedelic therapies including psychedelic integration, virtual experiences, and mental coaching and tracking. AI drug discovery companies specializing in psychedelic therapeutics are also included.

Promising research and receding stigma are giving investors cannabis-boom flashbacks.

Psychedelic Medicine

Overview

<div>
  <h3>
    The psychedelic renaissance: moving beyond stigma toward a breakthrough mental health treatment 
    
  </h3>
  <p>
    Psychedelics (also called hallucinogens) are powerful mind-altering substances that can temporarily induce hallucinations by affecting the serotonin receptors in the brain responsible for controlling the senses. Popular psychedelics include lysergic acid diethylamide (LSD/acid), psilocybin (magic mushrooms), and ketamine. 
    
    Psychedelics have been used in religious settings for thousands of years, but developed a social stigma in the 1960’s due to widespread recreational use by “hippies” and youth involved in counter-cultural and anti-war movements in the US and beyond. These substances were finally made illegal in the US in 1970. Fifty years later, psychedelics are re-entering the mainstream as a potential breakthrough for various hard-to-treat mental health conditions, including depression and post-traumatic stress disorders (PTSD). 
    
    A May 2019 approval by the US Food and Drug Administration (FDA) of a ketamine-derivative substance (in therapeutic settings) has raised the possibilities of more widespread commercialization of psychedelics. Since then, the nascent industry—still mostly in the research stage—has garnered significant investor interest, some of whom are anticipating a cannabis-like boom.
  </p>
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The US addressable market estimate for FDA-approved depression and PTSD therapies is USD 66 billion

Market Sizing

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  <p>
    <b>Heightened demand for mental health treatments:</b>
     
  </p>
  <p>
  </p>
  <p>
    In June 2020:
  </p>
  <p>
    - 4X higher rates of depression (vs Q2 2019)
  </p>
  <p>
    - 3X higher rates of anxiety (vs Q2 2019)
  </p>
  <p>
    - 2X higher rates of suicidal ideation (vs 2018)
  </p>
  <p>
  </p>
  <p>
    <b>Pandemic restrictions forced psychedelic clinics to adopt telemedicine:</b>
  </p>
  <ul>
    <li>
      <p>
        <b>Field Trip:</b>
         Launched virtual psychedelic therapy services through its online platform. 
      </p>
    </li>
  </ul>
  <ul>
    <li>
      <p>
        <b>Mindbloom:</b>
         Launched fully virtually administered ketamine therapy sessions.
      </p>
    </li>
  </ul>
  <p>
  </p>
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COVID19-IMPACT

Market Mapping

<h3>Research and development dominates the industry’s competitive landscape</h3><p>A majority of the businesses in the psychedelic industry focus on research and development (R&D), studying the benefits of psychedelic substances and conducting preclinical and clinical research. Other segments—such as cultivation, clinics, and delivery platforms—have started to evolve only recently, driven by the advancements in R&D and positive developments in the regulatory landscape. So in addition to R&D focused leaders Compass Pathways and MindMed, the industry is now seeing growth in vertically integrated psychedelic players such as Field Trip, Numinus, New Wave, and others listed in the table below.</p>

The Disruptors

<h3>Compass Pathways and MindMed are the most advanced R&D companies</h3><p>Having advanced their lead drugs to Phase 2b clinical trials, Compass Pathways and MindMed can be safely considered the for-profit pioneers in psychedelic research. And in some cases, it could be said that psychedelic medicine companies might prioritize financial stability over groundbreaking research with a majority of the companies covered in this industry hub having pursued relatively early-stage listings, following a strategy employed by cannabis companies.</p><p>Looking at the industry as a whole, capital is concentrated with the four Nasdaq-listed companies: Compass and MindMed as well as their relatively younger peers ATAI Life sciences and GH Research. Other disruptors like Field Trip, Core One Labs, Silo Pharma, and Bright Minds are also eyeing Nasdaq-listings or uplistings with the hope of accelerating growth via enhanced investor visibility.</p><p>Among the privately held companies, Beckley Psytech and Gilgamesh Pharmaceuticals—which develop psychedelic-inspired medicines for neuropsychiatric conditions, have raised the most cash within the range of USD 30-40 million in venture funding.</p>

Disruptor Funding History

The Incumbents

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  <h3>
    Industry yet to attract interest from big pharma
  </h3>
  <p>
    The psychedelic industry has not yet attracted major interest from conventional pharmaceutical companies. This reluctance could be due to psychedelic therapies’ tendency to require a single round of treatment as well as financial, legal, and reputational risks. Partnerships and acquisitions are highly likely in the near future, however, as psychedelic companies progress toward latter stages of drug development.
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Psychedelic Medicine

Psychedelic Medicine

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