Psychedelics Revolution Gaining Breadth And Momentum

Psychedelic drugs are also demonstrating exciting potential to treat cognitive decline, the other “mental health crisis”, in a world with an aging population. Eleusis Ltd (a private company) is entering a Phase 2 clinical trial using microdoses of LSD to treat Alzheimer’s disease.

That’s just the tip of the iceberg, the most advanced research. A host of research initiatives are studying the potential of psychedelics (primarily ibogaine and ibogaine derivatives) to treat addiction.

In addition to headaches, psychedelics companies like Mind Cure Health (CAN: MCUR / US: MCURF) are researching the potential of psychedelics to treat other neurological disorders and chronic pain.

Potential applications seem almost limitless. Psychedelics-based research is being aimed at everything from anorexia nervosa to treating obesity.

Drug development provides the psychedelics industry (and psychedelic drug stocks) with home-run potential. Even a single drug success can represent as much as a nine-figure payday.

The foundation of the psychedelic drug industry is its potential to address the Mental Health Crisis. But as this foundation grows upward it is also expanding laterally.

Drug development is only one dimension of this emerging sector.

Treatment markets growing

Many of the drug research initiatives in the psychedelics sector require full supervision and expert therapy during treatment sessions. The psychedelic drug industry is already there.

Several public psychedelic drug companies are also mental health treatment companies.

Field Trip Health (CAN: FTRP / US: FTRPF) and Numinus Wellness (CAN: NUMI / US: LKYSF) already have mental health clinics in operation and are expanding their networks. Mind Cure has announced it will be opening its first clinic in May 2021.

With an overall treatment market (world-wide) of 1+ billion people, the revenue potential is clear. Given the growing excitement in much of the medical community toward psychedelics-based medicine, there is no shortage of medical personnel seeking to be trained and accredited in such therapies.

Psychedelics-based medicine seems to be as efficient as it is effective. An economic study by MAPS on MDMA-assisted psychotherapy for PTSD estimated cost savings of $103,000 per patient versus existing therapy options.

With that sort of efficiency comes robust operating margins. The profit potential of this side of the industry is also visible.

In the United States alone, mental health services eat up $300 billion in revenue each year – much of it currently directed toward therapies with marginal efficacy.

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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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