The COVID Conundrum For Psychedelic Stocks

Now all of these additional socio-economic crises are getting much worse, much faster. And medical science hasn’t even begun to assess the long-term impact on mental health, from the extreme and protracted government policies intended to control the COVID pandemic.

In short, there is at least as much urgency in getting psychedelic drugs to market to address the mental health pandemic as there is in getting COVID vaccines produced and distributed.

Yet our governments obsess exclusively and continuously about COVID vaccines, while seemingly oblivious to the mental health pandemic.

The COVID Conundrum

Many jurisdictions are currently re-intensifying COVID lockdowns in what is being called a “third wave”. Concerns have simultaneously emerged regarding both vaccine safety and vaccine distribution.

The combined effect of this is that the mainstream media is also obsessing about COVID in its news coverage – while the mental health pandemic is grossly under-reported.

The impact of this on psychedelic stocks has been unfortunate.

Psychedelic stocks have been under pressure recently due to the significant pullback of NASDAQ tech stocks. This has been exacerbated by low volume for psychedelic stocks, which is at least partly due to the drop-off in media coverage.

The conundrum (and irony) here is obvious.

The longer the COVID pandemic lasts and/or the worse it gets, the greater the need for psychedelic drug development and psychedelics-assisted treatment facilities. By implication, the (potential) commercial value of this industry increases commensurately.

Yet the worse that COVID concerns get, the less attention that is paid to psychedelic drug stocks.

Most psychedelic stocks have now fallen by 50% (or more) from previous highs, despite the fact that news within the psychedelics industry has been uniformly positive:

  1. Increasing activity in the United States (at the state level) toward the decriminalization/legalization of psychedelic drugs
  2. Canada’s government is expanding legal access to psilocybin-based therapy
  3. Since Compass Pathways (CMPS) went public last September, over US$700 million in fresh capital has flooded into a sector that (in terms of public companies) is barely a year old
  4. The first psychedelic stock ETF is now trading (TSX:PSYK)
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William K. 1 month ago Member's comment

The market and need thinking seems strange to me. I seem to associate the term psychedelic with LSD and such types of substances. So evidently there is a new definition of "psychedelic " now. The descriptions of the problems brings to mind that Rolling Stones song about "Mothers Little Helper".

Of course, I define a High Stress situation as "coming under heavy automatic weapons fire, Quite different from some folks thinking.

And so I suppose that the ambient stress level in many areas is hard on some folks.