Although the functional mushroom market has been getting a lot of attention, we are most excited about the progress that has been made on the biotech side of the psychedelic industry.
There are a few companies in advanced stages of U.S. Food and Drug Administration (FDA) clinical trials and the initial data on psychedelic-based medications has been positive for the treatment of depression, anxiety, PTSD, addictions, eating disorders, ADHD and other indications.
The total addressable market (TAM) that is associated with the indications that were mention in prior paragraph is substantial and we are bullish on the opportunity for companies that are levered to this vertical. We believe that psychedelic-based medication market is reaching an inflection point and believe that the opportunity represents a burgeoning growth opportunity.
Today, we want to highlight 2 companies that are focused on the psychedelic therapy market and that we are excited about. We believe that these opportunities represent more advanced businesses (when compared to the rest of the sector) and will continue to closely follow how the stories advance from here.
Wake Network: A Multi-Faceted Growth Story to be Aware of
WAKE Network is highly focused on the psychedelic therapy market and is an opportunity that caught our attention. The business is led by a management team that has a proven track record of success in the biotech industry and is focused on advancing fungi and plant-based medicine by leveraging clinical research, wellness professionals, and technology.
We believe that WAKE Network represents a differentiated opportunity and are favorable on the amount it has accomplished in the psychedelic therapy market to date. The company has developed a regenerative feedback loop that allows it to research, monitor and incorporate results from clinical studies to personalize medicine and reduce the amount of ambiguous results from mass medicine.
Earlier this year, Wake Clinics opened a 3,000-acre mountain retreat, private beach and pavilion in Jamaica. The facility offers psilocybin-based therapy where licensed professionals assess patients and track biofeedback. Wake Jamaica is separate division of the business and is a cultivation-focused joint venture that is managed by Pauline Smith and her group of mycologists and farmers.
We are favorable on the structure of Wake Network as well as the verticals that it is levered to. The company has a clinical immersion platform in Jamaica, Netherlands, California, British Virgin Isles, and Brazil. Wake has significant growth prospects and is focused on being granted patents for proprietary formulations, strains, dosing, therapy protocols, and delivery methods.
Wake Network represents a multi-faceted growth opportunity that has significant potential catalysts for growth. In the back half of 2020, we expect the company to record significant advancements as it relates to its platform and is an opportunity that we will be closely monitoring on a going forward basis.
COMPASS is a Leading Operator to be Aware of
COMPASS Pathways is a leading player in the psychedelic therapy market and is working on the development of a psilocybin therapy for treatment-resistant depression. When compared to other companies that are focused on the psychedelic therapy market, we believe that COMPASS represents a more advanced opportunity and are favorable on the people that are backing the business.
In 2018, COMPASS announced a milestone and was granted a breakthrough therapy designation from the US FDA for its psilocybin therapy and this is an attractive aspect of the story. When compared to its peers, the company has an advanced pipeline of therapies that are in various stages of FDA testing and is an opportunity that we are excited about.
Last year, COMPASS reported another milestone and completed a Phase 1 study on COMP360 (psilocybin) and announced that the treatment was well tolerated. Later this year, COMPASS expected to complete the world’s largest Phase 2b psilocybin study and a positive outcome should prove to be a catalyst for the entire sector.
From the balance sheet to the management team, COMPASS possess the traits that we are looking for in a psychedelic company. We believe that COMPASS represents an attractive play on the psychedelic therapy market and will monitor how the story continues to evolve.