Hard Numbers On The Huge Potential Of Psychedelic Drug Development

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.


With many psychedelic stocks having slipped into deep troughs, Psychedelic Stock Watch has been highlighting how “cheap” these pubcos have gotten.

We’ve pointed to the strong cash positions and low cash-to-market-cap ratios of many of these companies.

We’ve covered the individual achievements of these companies (while share prices have sunk) and presented the individual drivers that could power new rallies in these stocks.

We’ve presented the overall progress within the psychedelic drug industry and discussed some of the sector-wide catalysts on the horizon that could drive broader rallies.

What we haven’t done is given investors a clear look at the upside potential of this emerging industry.

Today, psychedelic drugs are seen as the only hope to address a Mental Health Crisis that already afflicts roughly 1 in 6 people on the planet. That’s over 1 billion potential medicinal consumers of psychedelic drugs.

But how much is that worth?

Major Depressive Disorder: a potential $700 billion market in the U.S. alone

One of the many major treatment markets for psychedelic drugs is depression. Prior to COVID, over 17 million Americans were estimated to have at least one “major depressive episode” each year (according to the National Institute of Mental Health).

Johnson & Johnson’s esketamine-based Spravato™ is the newest drug on the market to treat depression. A year’s treatment of Spravato at the recommended dosage costs roughly $35,000 (source: drugs.com).

That means that prior to COVID, if all the Americans suffering from major depressive disorder were put on Spravato™, it could generate annual revenues of close to $700 billion.

However, thanks to COVID, this is rapidly becoming an even larger treatment market – and investment opportunity.

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Disclosure: The writer holds shares in MindMed Inc, Numinus Wellness and Cybin Inc.

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