After the Multidisciplinary Association for Psychedelic Studies (MAPS) published promising results from a clinical trial using MDMA to treat post-traumatic stress disorder (PTSD), the psychedelic therapy sector has received extra attention.
According to The New York Times, MAPS could receive FDA approval by 2023 and we are favorable on the data that is associated with the study. This comes after the Imperial College London’s study of the use of psilocybin to treat depression was published by The New England Journal of Medicine.
Peter Thiel is a high-profile investor that is involved with several companies that are focused on developing FDA approved psychedelic therapies. One of the companies, Atai Life Sciences is expected to go public in the near future and is an opportunity that we are excited about.
One of the reasons we are excited about companies that are focused on developing these types of treatments is due to the size of the markets. Currently, there are several companies that are researching a variety of ways to treat mental health with alternative and psychedelic therapies and we expect positive clinical trial data to support the growth of the industry.
The current treatment approach for people who are taking medication for depression and PTSD is expensive and puts a burden on the entire health-care system. If companies like MAPS and Atai continues to report positive clinical trial data, these biotech firms could be a major beneficiary of a substantial shift in the healthcare industry.
According to the National Institute of Health (NIH), 51.5 million people in the US were living with a mental illness in 2019. We believe the COVID pandemic has put additional stress on people and expect the number of people who live with a mental illness to increase as a result.
From a regulatory standpoint, we are seeing significant improvements in the US. Currently, Denver and Oregon have decriminalized psychedelics like psilocybin and we are favorable on this trend. If the legalization movement follows what we saw in the cannabis industry, we could be in the first inning of a long-term growth cycle and will continue to closely follow how the industry advances.
If you are interested in learning more about the psychedelic therapy sector, please send an email to firstname.lastname@example.org to be added to our distribution list.