The last few years have been significant for the psychedelic therapy industry and we believe the sector is in not even in the first inning of a major growth cycle.
From a regulatory standpoint, the psychedelic therapy industry has reported significant advancements, and this is a trend that we expect to continue. Initially, a few select cities in the US announced the decriminalization of psychedelics. Now, we are seeing states and countries announce pro-psychedelic legislation and believe that our readers need to be aware of this.
While the psychedelic industry has distinct differences from the cannabis industry, we see a lot of similarities from a legalization standpoint. If the psychedelic industry follows the path of the cannabis industry, then we could be looking at the next major emerging market and have been closely following the companies that are levered to the industry.
Today, we want to highlight three companies that are considered to be leaders in the psychedelic therapy industry. These operators are conducting late-stage Food and Drug Administration (FDA) clinical trials and we believe that positive data could prove to be the catalyst that the industry needs to gain more legitimacy.
- ATAI Life Sciences is considered to be one of the best private psychedelic therapy companies and is an operator that we are bullish on. The company has been able to tap the capital markets to raise capital and has one of the strongest balance sheets in the sector. ATAI Life Sciences 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. When the company goes public, it expects to be valued between $1 and $2 billion and this is an opportunity to be aware of.
- Cybin Corp. (CYBN: NEO) complete a go public transaction in late 2019 and is an operator that we are closely following. The psychedelic therapy company is conducting Phase 2a/2b clinical trials in Jamaica and positive data could prove to be a major catalyst for growth. Cybin is initially focused on developing a treatment for major depressive disorder (MDD) and we will be monitoring how the story advances from here.
- Wake Network is another private company that is focused on the psychedelic therapy market and is expected to go public in the near future. From intellectual property to human capital, the company has recently reported several major developments and this is an opportunity that we are closely following. One of the ways that Wake Network 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. We expect the company to go public with a valuation that is substantially lower than ATAI and will monitor how the story advances.