The psychedelics space is heating up, and the big players have noticed.
The market is being driven by a growing number of decriminalization movements in the United States, as well as a growing number of market participants, including names such as COMPASS Pathways PLC CMPS, Excursion Health Ltd FTP, Cybin CYBN, Enveric Biosciences Inc ENVB, Hollister Life Sciences HSTRF and revive therapeutics RVVTF.
Cannabis companies are entering the market, as are well-known leaders in the marijuana space. Notable names are former ones Canopy Growth Corp C.G.C CEO Bruce Linton, now a Director for Toronto Mind Medicine (MindMed) Inc MNMD and Chairman of the Advisory Board for Red light Holland TRUFFa brand focused on truffles.
In June 2020, Aurora Cannabis ACB Co-founder Terry Booth left his cannabis company. In doing so, Booth drew attention to psychedelics and invested in Red Light Holland. Booth also joined the board of directors of Psyched Wellness Corp in May. at.
What is the appeal of psychedelics?
Those who spoke with Benzinga for this article believe interest in the burgeoning space stems from the creation of medicinal effects, as well as frustrations with cannabis regulation.
Linton told Benzinga his interest in the market is twofold.
First, the decision was driven by the belief that Linton could achieve more meaningful medical effects with psychedelic substances.
The other reason “was that cannabis has had really stupid rules and policies for quite a long time,” said Linton, who prefers proper regulation to decriminalization.
Ronan Levy, Executive Chairman of psychedelics therapy company Field Trip, discussed the regulatory appeal of cannabis and psychedelics.
“For entrepreneurs in the cannabis industry, the appetite for uncertainty must be even greater given the regulatory, reputational and legal risks inherent in cannabis,” Levy said.
He addressed why psychedelics have a clearer legal understanding than cannabis.
“The legal environment for psychedelics is much more transparent than cannabis, with psychedelics being driven by scientific and academic research seeking regulatory approvals, rather than grassroots political efforts as in the case of cannabis,” Levy said, noting how the Situation a simpler market allows participation.
Without downplaying the marijuana results, Levy explained that psychedelics research is more compelling given the larger body of lab studies currently available.
The executive chairman also discussed the medical implications, noting that cannabis entrepreneurs were likely inspired by seeing the changes marijuana and psychedelics were having on patients.
“It seems natural for cannabis entrepreneurs to see beyond the stigma of psychedelics the potential to create real, meaningful impact and change,” Levy said.
What to consider
Operators and executives are more in agreement that the psychedelics demographic could match or surpass that of cannabis as a broad spectrum, and indicated that the segment is just beginning to take shape.
“I don’t think there’s a specific demographic that can benefit, but more specific conditions where we know these substances can be effective,” said Josh Barch, President and CEO of Mydecine Innovations Group Inc MYCOF.
Bartch, who said his company looks at consumer patients, said those receiving treatment could include people with terminal illnesses as well as those with PTSD.
With such a wide range of potential patients, psychedelics operators believe that the market is just picking up, there is still much to learn, and more to come.
“Even though there’s an incredible amount of excitement today, the game hasn’t even started yet,” said Field Trip’s Levy.
Noting that, as with cannabis, regulations are still largely uncertain, Levy advised, “Make sure you play the long term in any business opportunity you pursue with psychedelics.”
Mydecine’s Bartch noted that a wide range of treatments could create confusion for newbies. The President and CEO offered a solution, saying, “Make sure you’re really focused on what you ultimately want to achieve.”
Barch added, “Rate the other players in the room who are also trying to achieve this or similar goals and make sure your team clearly outperforms them.”
Encuentra new content in Español in El Planteo:
Como Sobrellevar and ‘Mal Viaje’ de Psicodelicos
Initial Release Date: August 2020.