During the last year, we have seen an increase in the number of governments that are easing regulations against the psychedelic market. Most notably, major cities in California, Colorado and Oregon, have decriminalized psilocybin and this is a development that our readers need to be aware of.
The easing of regulations in these markets have brought up the discussion about the legalization of psychedelics and some analysts expect to see the industry follow the path of the cannabis market.
2020 has been a banner year for the psychedelic market as leading psychedelic companies continue to advance therapies through the US Food and Drug Administration (FDA) clinical trial process. We believe that the successful completion of FDA clinical trials would be the most significant catalyst for the sector, and we are favorable on the potential that is associated with this aspect of the industry.
Early reports indicate that psychedelic therapies have the potential to treat a variety of debilitating mental illnesses and we are favorable on this. Many of the indications that these therapies are focused on do not have a proven treatment and have a large total addressable market (TAM).
The initial data from clinical trials show that psilocybin mushrooms can effectively treat obsessive-compulsive disorder (OCD), post-traumatic-stress-disorder (PTSD), opioid addiction, alcoholism, eating disorders, depression, anxiety, and possibly even weight loss. We are favorable on the potential that is associated with the markets for psychedelic therapies and find this to be an attractive aspect of the market landscape.
We believe that the psychedelic sector is not even in the early innings of a secular growth cycle and are favorable on the tailwinds that are benefiting the industry. The continued easing of regulations in North America are benefiting the companies that are focused on this emerging market and are expecting further positive developments on this side of the industry.