Psychedelics Revolution Gaining Breadth And Momentum

 While psychedelic stocks took a pause to start 2021, it’s easy for investors to forget that for the industry itself it’s full-speed ahead.

We see the psychedelic drug industry growing and evolving on practically a daily basis. It starts with capital.

Drug development is capital-intensive. One of the question marks for this emerging sector was whether it could attract capital in sufficient quantities to power this industry.

That question has been answered.

Capital flows increasing

In just the past four months, the psychedelic drug industry has raised $539.5 million in public offerings and private financing rounds.

Of that total, $371 million was raised by public companies who currently sit with a combined market cap of ~$3 billion. These are well-capitalized companies.

The latest financing from Cybin Inc (CAN: CYBN) was effectively priced at the bid. So, too, was Mydecine Innovation Group’s (CAN: MYCO / US: MYCOF) recent financing. MindMed Inc (CAN: MMED / US: MMEDF / GER: MMQ) was trading as much as 15% below its recent placement (at CAD$4.40) before regaining momentum last week..

Institutional investors are big believers in these companies – at current price levels.

Drug research advancing and diversifying

The capital that is entering this industry has no shortage of applications.

The headline with the Psychedelics Revolution is the potential of these drugs to conquer the Mental Health Crisis. Over 1 billion people are afflicted with stress-related mental health disorders like depression, anxiety, addiction, and PTSD.

Clinical research on psychedelic drugs has been consistently generating amazing results – and is now well advanced. See: Psychedelic Drugs: Powerful Medicine, Life-Changing Results

The Multidisciplinary Association for Psychedelic Studies (MAPS) is moving into a Phase 3 clinical study using MDMA to treat PTSD. Compass Pathways (US: CMPS) is proceeding to a Phase 2b clinical trial using psilocybin-based therapy for treatment-resistant depression.

Cybin is moving into its own Phase 2 trial involving psilocybin-based therapy. But this is for major depressive disorder, an even larger treatment market. Mydecine is moving into a Phase 2 clinical trial also involving MDMA therapy for PTSD. MindMed is preparing to enter a Phase 2b clinical trial using LSD to treat anxiety.

But as this research advances, psychedelic drug R&D is also broadening into other fields of medical treatment – rapidly.

MindMed itself has two other clinical trials at a Phase 2 stage: one for adult ADHD and another for cluster headaches.

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Disclosure:

The writer holds share in MindMed Inc, Cybin Inc, Numinus Wellness and Mind Cure Health. Mind Cure Health is a client of Psychedelic Stock Watch.

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