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2020 was a breakthrough year for the psychedelic sector and we expect this year to be even more significant.
When it comes to the advancement of the sector, we believe the industry will benefit from two key factors. These factors are an improving regulatory environment as well as data that is associated with clinical trials that are in advanced stages and are being conducted on psychedelic therapies.
Last year, several companies that are focused on the development and commercialization of psychedelic therapies completed go-public transactions and this is a trend that is expected to become more significant this year. Today, we want to highlight two psychedelic therapy companies that are considered to be industry leaders and believe that they are operators to be aware of.
ATAI Life Sciences: The Next Psychedelic Therapy Unicorn
ATAI Life Sciences is considered to be a leading player in the psychedelic therapy sector and is an opportunity that we are excited about. In late 2020, ATAI closed a $125 million funding round that attracted several strategic investors (Peter Thiel, Apeiron Investment Group, Catalio Capital Management, Future Ventures, Galaxy Investment Partners, Falcon Edge Capital, and Pura Vida).
ATAI is a drug development platform that was structured to acquire, incubate and develop psychedelics and other drugs that can be used to treat depression, anxiety, addiction and other mental health conditions. Since inception, the company has raised more than $200 million and we find this to be significant.
So far, ATAI has partnered with around 10 drug development companies and we are favorable on the structure of the drug development platform. The partnership agreements are set up in way where ATAI is granted the majority ownership interest in drugs that are being developed by these partners. in return, ATAI provides it partners with support on the fundraising, regulation, and clinical trial.
Later this year, ATAI expects to complete an initial public offering (IPO) that values the business between $1 and $2 billion. We are favorable on the company’s opportunity to become a leading player in the psychedelic therapy market and this is a company that our readers should be aware of.
Wake Network: A Pre-IPO Opportunity to be Aware of
Wake Network is another psychedelic therapy business that plans to go public this year and is an opportunity that we are excited about. One of the ways the business has been able to differentiate itself is through the development of a regenerative feedback loop that allows it to research, monitor and incorporate results from clinical studies to personalize medicine which should reduce the level of ambiguous results from traditional medicine.
Another way that Wake Network has been able to differentiate itself is by executing on a Jamaica based joint venture and by attracting strategic human capital to the leadership team. In the psychedelic therapy industry, human capital is one of the most important aspects of any company.
In regards to Wake Network’s leadership team, we are excited about the value that Dr. Olga Chernoloz adds to the business as the Director of Psychedelic Research.. Dr. Chernoloz is a specialist in the pharmacology of psychoactive compounds and is a trained neuropharmacologist and a registered pharmacist.
Last year, Wake opened a facility offers psilocybin-based therapy on a 3,000-acre mountain retreat, private beach and pavilion in Jamaica. We are favorable on how the story has advanced and believe that our readers need to be aware of this emerging opportunity.
If you are interested in learning more about leading psychedelic therapy companies, please send an email to support@mushroomstock.com with the subject “Psychedelic Therapy Companies” to be added to our distribution list.
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