Early last week, the psychedelic sector recorded a major milestone after California’s state Senate passed legislation to decriminalize the possession of psychedelics. The bill was sponsored by California Senator Scott Wiener (Democrat) and has already been approved by three committees.
Now, the legislation will be sent to the state’s Assembly and we consider this to be an important step for emerging industry. If the legislation is approved, it would allow for the use of mushrooms, MDMA, lysergic acid diethylamide (LSD), mescaline and ibogaine for combat veterans who suffer from post-traumatic stress disorder (PTSD) and for people who have diagnosed (or undiagnosed) addiction issues and mental illnesses.
Prior to the vote, Senator Weiner said, “This approach moves us away from the failed war on drugs, which was based on the badly flawed premise that criminalizing, arresting, prosecuting and imprisoning people for using drugs will somehow deter their use and will somehow improve public safety. If there’s anything we’ve learned from the past half-century it’s that throwing people in jail for using drugs doesn’t stop drug use.”
After the legislation was approved by California’s Senate (passed by a vote of 21 to 16), Senator Wiener stated that psychedelic therapies have significant benefits both for mental health and addiction treatment. We agree with his view on the potential for psychedelic therapies to effectively treat debilitating mental illness and addiction issues.
The legislation is a positive for companies that are focused on psilocybin since it would repeal provisions in California statute that prohibits the cultivation or transportation of any spores or mycelium capable of producing mushrooms or other material that contain the psychoactive ingredient.
According to the legislation, California’s Department of Public Health would be required to establish a working group to make recommendations on the possible regulatory systems that could be adopted to promote safe and equitable access to certain substances in a legal context. The legislation requires the recommendations to be submitted by January 1, 2024, and we will monitor how the bill advances from here.
Currently, there are a few public companies and non-profit research firms that are in advanced phases of the Food and Drug Administration (FDA) clinical trial process. So far, the data from these clinical studies have been very positive and we are favorable on the potential medical benefits that are associated with psychedelic therapies.
Over the next year, we expect to receive clinical data from companies like the Multidisciplinary Association of Psychedelic Studies (MAPS) and believe the industry has substantial growth prospects. Going forward, we will monitor how the psychedelic therapy sector benefits from advanced clinical trials and expect positive data to serve as a major catalyst for the entire industry.
If you are interested in learning about companies that are focused on developing psychedelic therapies, please send an email to firstname.lastname@example.org with the subject “Psychedelic Therapy Companies” to be added to our distribution list.