Psychedelics

1ST YEAR ON THE LIST

Field Trip Health offers psychedelically enhanced psychotherapy in a resort-like environment.

Credit: Field Trip Health

KEY INSIGHT

Psychedelics are a small but fast-growing market with some estimates valuing it at $7 billion by 2027. Despite the clinical trials, Food and Drug Administration approvals, and breakthrough therapy designations, the field straddles a gray space between accepted medical treatment and recreational drugs. Shifting regulations and increased investment may help it bridge those worlds.

EXAMPLES

The field is gaining credibility as respected institutions open specialized research centers and larger studies reinforce the potential of psychedelics in treatment of PTSD, major depressive disorders, and addiction. In September 2021, the National Institutes of Health awarded Johns Hopkins Medicine $4 million to investigate the effectiveness of psilocybin in smoking cessation—the first time in 50 years that the U.S. government has funded psychedelic research. The following month, the FDA gave biotech Cybin clearance to study brain activity during psychedelic experiences using Kernel Flow neuroimaging. Consumer services are also expanding. Entheon Biomedical offers a genetic test to predict individual response to psychedelics. Canadian startup Field Trip Health has clinics in six major U.S. cities that offer ketamine therapy sessions in a setting that resembles more of a wellness resort than a medical facility.

DISRUPTIVE IMPACT

Industry tracker Psilocybin Alpha reported 32 publicly traded companies working in psychedelics and at least 18 more privately held. STAT reported that the industry had grown quickly from a market cap of less than $1 billion in 2020 to having four billion-dollar companies in 2021. With the amount of investment in the area, it’s not surprising to see an ongoing battle around patents that may restrict research into certain psychedelic compounds and limit treatment approvals to synthetic versions only. Regulations are changing. Oregon became the first state to legalize psilocybin therapies in November 2020 while D.C., Detroit, Denver, Oakland, and Santa Cruz decriminalized psilocybin. In Canada, all 13 provinces and territories have exemptions for psychedelic mental health treatment. British Columbia, which has fully embraced the cannabis industry, is home to many psychedelic startups. In Australia, the federal government invested $15 million to support research into psychedelics and mental health.

EMERGING PLAYERS

• MindMed • Cybin • Field Trip Health • Compass Pathways • Atai Life Sciences • Entheon Biomedical • Centre for Psychedelic Research at Imperial College London • Center for Psychedelic and

Consciousness Research at Johns

Hopkins Medicine • New York University Langone Center for Psychedelic Medicine