Psychedelic Medicine

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

Overview

The psychedelic renaissance: moving beyond stigma toward a breakthrough mental health treatment

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.

What's driving this industry?

Industry Updates

Delix Therapeutics raises USD 70 million Series A
Sep 27
PharmaTher to raise USD 7.9 million via private placement
Sep 24
Tripp partners with Nreal for augmented reality integration
Sep 24
View all updates
Market Sizing

The US addressable market estimate for FDA-approved depression and PTSD therapies is USD 66 billion

View details

COVID-19 IMPACT

Heightened demand for mental health treatments:  

In June 2020:

- 4X higher rates of depression (vs Q2 2019)

- 3X higher rates of anxiety (vs Q2 2019)

- 2X higher rates of suicidal ideation (vs 2018)

Pandemic restrictions forced psychedelic clinics to adopt telemedicine:

  • Field Trip: Launched virtual psychedelic therapy services through its online platform.

  • Mindbloom: Launched fully virtually administered ketamine therapy sessions.

Market Mapping

Research and development dominates the industry’s competitive landscape

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.

Incumbents
Growth
Early
Seed
Pre seed
Cultivation/ Synthesis
?
Patent Portfolio
?
Research and Development
?
Clinics
?
AI/ Digital Platforms
?
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Pharmaceuticals
Numinus
Field Trip Health
Mycotopia Therapies
CB Therapeutics
Psilera Bioscience
Core One Labs
Mindset Pharma
Mind Cure Health
Silo Wellness
New Wave Holdings
PsyBio Therapeutics
Filament Health
PharmaDrug
HAVN Life Sciences
Mydecine Innovations Group
Psygen Labs
Octarine Bio
Pure Extracts Corp
MindMed
Compass Pathways
Revive Therapeutics
Braxia Scientific
Cybin Corp
Enveric Biosciences
CaaMTech
Wesana Health
Orthogonal Thinker
Bexson Biomedical
Psilera Bioscience
MYND Life Sciences
Core One Labs
Mindset Pharma
Lobe Sciences
Creso Pharma
Clearmind Medicine
BetterLife Pharma
Filament Health
Johnson & Johnson
MAPS
Abbvie
Usona Institute
ATAI Life Sciences
MindMed
GH Research
Compass Pathways
Revive Therapeutics
Numinus
Field Trip Health
Braxia Scientific
Eleusis
Mycotopia Therapies
Beckley Psytech
Cybin Corp
Seelos Therapeutics
Gilgamesh Pharmaceuticals
Enveric Biosciences
Wesana Health
CB Therapeutics
Bexson Biomedical
Silo Pharma
Psilera Bioscience
MYND Life Sciences
Tryp Therapeutics
Small Pharma
Bright Minds
DemeRx
M2Bio Sciences
Awakn Life Sciences
Mindset Pharma
Xphyto Therapeutics
Lobe Sciences
Creso Pharma
Mind Cure Health
Entheon Biomedical
Clearmind Medicine
PharmaTher
Novamind
BetterLife Pharma
New Wave Holdings
Filament Health
PharmaDrug
HAVN Life Sciences
Albert Labs
Mydecine Innovations Group
Pilz Bioscience Corp
Perception Neuroscience
Lophora
Aion Therapeutic
Numinus
Field Trip Health
Braxia Scientific
Eleusis
Mycotopia Therapies
Wesana Health
Core One Labs
Awakn Life Sciences
Ketamine One
Creso Pharma
Silo Wellness
Novamind
New Wave Holdings
PsyBio Therapeutics
Mydecine Innovations Group
Mindbloom
ATAI Life Sciences
Field Trip Health
Tripp
Mindleap
Ketamine One
Mind Cure Health
PharmaTher
Mydecine Innovations Group

The Disruptors

Compass Pathways and MindMed are the most advanced R&D companies

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.

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.

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.

Cultivation/ Synthesis

?

Disruptors

?
Funding in USD Millions
Field Trip Health
Public - Market cap USD 269.3 mn
Numinus
Public - Market cap USD 130.2 mn
Mydecine Innovations Group
Public - Market cap USD 64.5 mn
Filament Health
Public - Market cap USD 46.8 mn
Mindset Pharma
Public - Market cap USD 44.5 mn
PsyBio Therapeutics
Public - Market cap USD 30.4 mn
Core One Labs
Public - Market cap USD 26.7 mn
Mind Cure Health
Public - Market cap USD 25.1 mn
HAVN Life Sciences
Public - Market cap USD 25.1 mn
Pure Extracts Corp
Public - Market cap USD 23.0 mn
Mycotopia Therapies
Public - Market cap USD 21.3 mn
PharmaDrug
Public - Market cap USD 12.1 mn
Silo Wellness
Public - Market cap USD 3.7 mn
New Wave Holdings
Public - Market cap USD 2.3 mn
CB Therapeutics
8
Psilera Bioscience
3
Watchlist
?
Psygen Labs
Octarine Bio

Patent Portfolio

?

Disruptors

?
Funding in USD Millions
Compass Pathways
Public - Market cap USD 1.3 bn
MindMed
Public - Market cap USD 925.6 mn
Cybin Corp
Public - Market cap USD 290.6 mn
Revive Therapeutics
Public - Market cap USD 120.6 mn
Enveric Biosciences
Public - Market cap USD 48.0 mn
Filament Health
Public - Market cap USD 46.8 mn
Mindset Pharma
Public - Market cap USD 44.5 mn
Wesana Health
Public - Market cap USD 33.6 mn
MYND Life Sciences
Public - Market cap USD 32.6 mn
Braxia Scientific
Public - Market cap USD 31.5 mn
Core One Labs
Public - Market cap USD 26.7 mn
BetterLife Pharma
Public - Market cap USD 18.8 mn
Lobe Sciences
Public - Market cap USD 8.4 mn
Creso Pharma
Public - Market cap Unknown
Clearmind Medicine
Public - Market cap Unknown
Orthogonal Thinker
6
Psilera Bioscience
3
Watchlist
?
CaaMTech
Bexson Biomedical

Research and Development

?

Disruptors

?
Funding in USD Millions
ATAI Life Sciences
Public - Market cap USD 2.5 bn
Compass Pathways
Public - Market cap USD 1.3 bn
GH Research
Public - Market cap USD 1.1 bn
MindMed
Public - Market cap USD 925.6 mn
Cybin Corp
Public - Market cap USD 290.6 mn
Field Trip Health
Public - Market cap USD 269.3 mn
Seelos Therapeutics
Public - Market cap USD 213.8 mn
Numinus
Public - Market cap USD 130.2 mn
Revive Therapeutics
Public - Market cap USD 120.6 mn
Bright Minds
Public - Market cap USD 83.6 mn
Xphyto Therapeutics
Public - Market cap USD 77.1 mn
Mydecine Innovations Group
Public - Market cap USD 64.5 mn
Enveric Biosciences
Public - Market cap USD 48.0 mn
Filament Health
Public - Market cap USD 46.8 mn
Mindset Pharma
Public - Market cap USD 44.5 mn
Awakn Life Sciences
Public - Market cap USD 41.8 mn
Wesana Health
Public - Market cap USD 33.6 mn
MYND Life Sciences
Public - Market cap USD 32.6 mn
PharmaTher
Public - Market cap USD 32.1 mn
Braxia Scientific
Public - Market cap USD 31.5 mn
Mind Cure Health
Public - Market cap USD 25.1 mn
HAVN Life Sciences
Public - Market cap USD 25.1 mn
Mycotopia Therapies
Public - Market cap USD 21.3 mn
Novamind
Public - Market cap USD 21.3 mn
BetterLife Pharma
Public - Market cap USD 18.8 mn
Tryp Therapeutics
Public - Market cap USD 18.7 mn
Silo Pharma
Public - Market cap USD 18.3 mn
M2Bio Sciences
Public - Market cap USD 17.7 mn
PharmaDrug
Public - Market cap USD 12.1 mn
Entheon Biomedical
Public - Market cap USD 11.5 mn
Lobe Sciences
Public - Market cap USD 8.4 mn
Aion Therapeutic
Public - Market cap USD 3.3 mn
New Wave Holdings
Public - Market cap USD 2.3 mn
Creso Pharma
Public - Market cap Unknown
Clearmind Medicine
Public - Market cap Unknown
Beckley Psytech
114
Gilgamesh Pharmaceuticals
30
CB Therapeutics
8
Eleusis
6
Psilera Bioscience
3
Small Pharma
1
DemeRx
1
Watchlist
?
Bexson Biomedical
Pilz Bioscience Corp
Perception Neuroscience
Lophora
Albert Labs

Clinics

?

Disruptors

?
Funding in USD Millions
Field Trip Health
Public - Market cap USD 269.3 mn
Numinus
Public - Market cap USD 130.2 mn
Ketamine One
Public - Market cap USD 105.7 mn
Mydecine Innovations Group
Public - Market cap USD 64.5 mn
Awakn Life Sciences
Public - Market cap USD 41.8 mn
Wesana Health
Public - Market cap USD 33.6 mn
Braxia Scientific
Public - Market cap USD 31.5 mn
PsyBio Therapeutics
Public - Market cap USD 30.4 mn
Core One Labs
Public - Market cap USD 26.7 mn
Mycotopia Therapies
Public - Market cap USD 21.3 mn
Novamind
Public - Market cap USD 21.3 mn
Silo Wellness
Public - Market cap USD 3.7 mn
New Wave Holdings
Public - Market cap USD 2.3 mn
Creso Pharma
Public - Market cap Unknown
Eleusis
6
Watchlist
?
Mindbloom

AI/ Digital Platforms

?

Disruptors

?
Funding in USD Millions
ATAI Life Sciences
Public - Market cap USD 2.5 bn
Field Trip Health
Public - Market cap USD 269.3 mn
Ketamine One
Public - Market cap USD 105.7 mn
Mydecine Innovations Group
Public - Market cap USD 64.5 mn
PharmaTher
Public - Market cap USD 32.1 mn
Mind Cure Health
Public - Market cap USD 25.1 mn
Tripp
15
Mindleap
1

Field Trip Health

Toronto-based Field Trip is a mental wellness company developing and delivering psychedelic therapies to treat mental disorders such as depression, post-traumatic stress disorder (PTSD), and anxiety. The company has three divisions: Health (clinics), Discovery (research and development), and Digital (virtual therapy). As of June 2021, Field Trip Health operates in six locations: New York, Los Angeles, Toronto, Atlanta, Chicago and Houston. The company also has near-term plans to open six new clinics in San Diego, San Carlos, Seattle, Washington DC, Fredericton, and Amsterdam. These clinics support ketamine-assisted therapies with plans to add other substances, including psilocybin, when permitted. Through its Discovery segment in research labs at the University of West Indies in Jamaica, the company is developing FT-104, its first drug candidate similar to psilocybin in potency. The research is at the preclinical evaluation stage and Field Trip is planning to launch its Phase I clinical trials in 2021. A provisional patent has been filed for FT-104 with the US Patent & Trademark Office.

In August 2020, Field Trip launched its digital app which provides a framework and tools to support meditation and breathwork. The company also has a digital portal that provides users with information and tools related to psychedelic therapies to enhance and optimize the therapeutic experience provided via its clinics. 

Field Trip’s key strategy is to use the clinic model for immediate revenue generation while also making them an integral part of the company’s R&D structure. It plans to expand its clinic network to 20 by the end of 2021 and 75 by 2023. 

The company went public on the Canadian Securities Exchange in October 2020 after a reverse takeover of Newton Energy Corporation. The company is also awaiting final approval for a Nasdaq listing under the ticker symbol “FTRP” after received conditional approval in July 2021. It recorded revenue of nearly CAD 1 million (USD 0.8 million) for the year ended March 2021 and earned a net loss of CAD 23 million (USD 19 million).

Segment:
Cultivation/ Synthesis
Total funding:
USD 19.5 million
Competitors:
Compass Pathways, Champignon Brands, Numinus
Disruptor Funding History

Cultivation/ Synthesis :

Field Trip Health
Numinus
Core One Labs
CB Therapeutics
Psilera Bioscience
Psygen Labs
Octarine Bio

Patent Portfolio:

Compass Pathways
MindMed
Cybin Corp
Revive Therapeutics
Enveric Biosciences
Wesana Health
MYND Life Sciences
Braxia Scientific
Core One Labs
Orthogonal Thinker
Psilera Bioscience
CaaMTech
Bexson Biomedical

Research and Development:

The Incumbents

Industry yet to attract interest from big pharma

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.

In-house development

Acquisition

Partnership

Investment

Johnson & Johnson
check
MAPS
check
Abbvie
check
Usona Institute
check
Johnson & Johnson

In May 2019, Johnson and Johnson, through its pharmaceutical unit Janssen Pharmaceutica, was the first in the industry to receive US Food and Drug Administration (FDA) approval for a psychedelic-like nasal spray, named Spravato, to treat depression. Spravato contains esketamine, a chemical derivative of ketamine, and is intended to be used in conjunction with oral antidepressants. Spravato prescriptions are limited to  patients who have tried and failed at least two different antidepressants. 

The FDA granted Breakthrough Therapy status to Spravato twice: for treatment-resistant depression in 2013 and for major depressive disorder with imminent risk for suicide in 2016. The company claims Spravato to be the only approved medicine able to reduce depressive symptoms within 24 hours. The treatment’s clinical trials showed a 16-point decrease on the Montgomery-Asberg Depression Rating Scale after the first dose of the drug, compared to approximately 12 points in the standard care group. 

As the first Breakthrough Therapy approved for depression in three decades, industry analysts predicted Spravato to be a blockbuster drug for Johnson and Johnson. However, the treatment received criticism for not being cost effective from industry watchdogs, the Institute for Clinical and Economic Review (ICER) in the US, and the National Institute for Health and Care Excellence (NICE) in the UK. ICER concluded that Spravato would cost USD 198,000 per quality-adjusted life year, above the usual USD 150,000 threshold used to evaluate cost-effectiveness. NICE also claimed the true efficacy of the drug was difficult to determine due to issues in clinical trial design, and rejected the use of the nasal spray for National Health Service (NHS) for treatment of major depressive disorder.

Notable Investors

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