Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Investing

Psychedelics Market Forecast: Top Trends That Will Affect Psychedelics in 2024

by January 12, 2024
January 12, 2024
Psychedelics Market Forecast: Top Trends That Will Affect Psychedelics in 2024

As the research into psychedelic formulas continues to produce positive results, policymakers are taking notice.

With promising clinical trials, increasing public acceptance and a growing desire for psychedelic-assisted therapies (PAT), the industry seems to be poised for significant growth in the coming years.

Growing investment in the psychedelics sector

Companies in the psychedelic space are seeing a growing influx of funding and support thanks to positive clinical trial results.

In addition, Lykos Therapeutics, which just changed its name from MAPS Public Benefit Corporation, secured US$100 million in Series A funding from a group of private investors on January 5, 2024.

Lykos was previously focused on developing PATs for a range of mental health disorders, but, following the completion of Phase III trials of its MDMA-assisted therapy for post traumatic stress disorder in 2023 and subsequent submission of a new drug application (NDA) to the US Food and Drugs Administration (FDA) in December, the company has now changed its focus to bringing its MDMA treatment to market if it receives approval. The funding will be used to support these ongoing efforts.

Several of the same investors also recently contributed to a US$3.3 million funding round for Beckley Waves, a venture studio formed exclusively for the development of the psychedelic industry.

Ongoing regulatory progress

The regulatory landscape for these substances will play a crucial role in shaping the future of the market, with drug reform and decriminalization efforts having the potential to unlock significant growth opportunities.

While the current legislative landscape for psychedelics bears some similarities to that of the cannabis industry, there are also some key differences, namely its sole focus on therapeutic applications.

“In my opinion, the psychedelics industry is completely different than the cannabis market,” said Naseem Husain, senior vice president and ETF strategist at Horizons ETFs. “One is a medical and biotechnology opportunity while another is primarily focused on retail, at least in the North American market. While both have legal barriers to overcome that could result in growth, the psychedelic pipeline is about pharmaceutical and regulatory development and less so about marketing and distribution like we’ve seen in the hyper-competitive cannabis sector.”

This crucial distinction could allow for greater accessibility for the patients who need these treatments. More and more practitioners are being allowed to administer them via trials, and certain US states and Canadian provinces have legalized PATs or developed regulatory mechanisms to make them accessible, such as Health Canada’s Special Access Program. Even Australia, a country that has maintained its strict stance on cannabis, approved the legal therapeutic use of MDMA and psilocybin — a decision some scientists have called as rushed, especially when compared to the sluggish progress of cannabis legislation in the country.

In some cases, patients seek to circumvent the federal roadblock, either by procuring illicit substances on their own or by seeking treatment through a private institution. For example, psychedelic integration therapy, which helps individuals process and integrate the insights gained during a psychedelic experience, is available in Vancouver, but often at an exorbitant cost, and patients are left to source psychedelic compounds on their own.

What Drysdale and other market participants hope to achieve through their therapies is an affordable and effective treatment, which needs Health Canada or FDA approval to be accessible.

“What we’re doing is we are creating and producing synthetic, modified molecules, GMP manufactured, hoping to be FDA approved, prescribed by a doctor, reimbursed by your insurance company,” he said. “And I think that’s what you need to attract the attention of patients who are already depressed and dealing with stuff. I think that some may go seek natural mushrooms but if we can make these treatments really accessible through this regulated route first, then I think that’s the most reliable and less risky way of providing really significant access.”

Potential rescheduling on the horizon

So, could 2024 be the year for psychedelic drug reform? Some experts think the answer could be yes.

“I see the FDA approving one or both of these compounds (psilocybin and MDMA) and a new medical model and industry will be birthed in 2024 and 2025,” Andrew DeAngelo said in his 2024 Cannabis and Psychedelic Predictions article for Forbes, in which he also acknowledged that the industry is often unpredictable.

There has been some progress on that front. As mentioned above, Lykos Therapeutics has now submitted its NDA to the FDA for its MDMA treatment, and the company requested a priority review because of the FDA’s designation of MDMA as a breakthrough therapy. If the FDA accepts the application, the process would take six months with a priority review or 10 months for a regular review.

If the FDA ultimately approves the treatment, MDMA would need to be rescheduled from Schedule I to Schedule II, opening the door for other practitioners who have potential therapies in their pipeline.

While others are less certain of reform this year, most agree that legalization is on the way. The American Medical Association predicts that most states will have legalized psychedelics by 2037, so current investors might still need to wait a while before they start seeing high returns on investment.

“Participants and analysts have known that the psychedelic opportunity is ultimately a long-game that requires public policy progression, alongside pharmaceutical advancement and innovation. Ultimately, a watershed moment could lead to a waterfall effect across the industry,” Husain said.

Investor takeaway

The evidence suggests that the psychedelic industry could be on the brink of significant growth in the coming years, but with some caveats. While clinical trial results have been promising and public acceptance is growing, the regulatory landscape will play a critical role in shaping the future of the market.

With the right regulations and approvals in place, psychedelics could revolutionize mental health care and offer affordable and effective therapies to those who need them.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Tama Atacama Lithium Project – Exploration Concessions Granted
next post
Rare Earths Stocks: 8 Biggest Companies in 2024

Related Posts

What Was the Highest Price for Silver? (Updated...

May 30, 2024

Marvel Completes Drilling at Duhamel, Nickel-Copper-Cobalt Project, North...

March 8, 2024

Adrian Day: Soft Landing Won’t Happen, Look to...

November 14, 2023

Lake Resources NLMaiden Ore Reserve Defined at Flagship...

December 20, 2023

What is Synthetic Graphite? (Updated 2023)

July 11, 2023

Galan Secures Agreement with Glencore for Offtake &...

March 28, 2024

AI Market 2023 Year-End Review

January 3, 2024

Nature-based Climate Change Solutions for a Greener ESG...

October 27, 2023

Finlay Minerals Enters into Earn-In Agreements with Freeport...

April 20, 2025

Tech 5: DeepSeek Disrupts AI Landscape, Tech Stocks...

February 2, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Fed Watch: Key Bullish Patterns in the S&P 500, Utilities, and Crypto

    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

    • Brunswick Exploration Announces Brokered Private Placement for Gross Proceeds of up to C$2.5 Million, with a Lead Order from a Strategic Investor

    • Drill Contract Awarded for Elizabeth Hill. Technical Visit Completed to Define Drill Targets

    • $2.6M Placement and SPP to fast-track China entry and sales

    • NorthStar Gaming Announces Receipt of Management Cease Trade Order

    Categories

    • Business (1,183)
    • Investing (2,407)
    • Politics (3,699)
    • Stocks (1,553)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved