2021 has been a banner year for the psychedelic therapy market and we believe the industry is in the early innings of a major growth cycle.
With interest growing for data from biotech and non-profit research firms that are conducting Food and Drug Administration (FDA) clinical trials on psychedelic therapies. The clinical studies are focused primarily on mental health illnesses and we are favorable on how these breakthrough therapies can help patients that are impacted by debilitating mental health disorders.
The current state of the psychedelic therapy market looks similar to the cannabis industry in 2016. We expect the psychedelic industry to benefit from positive clinical data that is being published by biotech and non-profit research firms.
In 2016, GW Pharmaceuticals plc (GWPH) reported positive Phase 3 clinical data and the development served as a catalyst for the entire cannabis sector. The cannabis biotech firm was recently acquired by Jazz Pharmaceuticals plc (JAZZ) and we expect to see similar transactions in the psychedelic industry once these firms start to report positive clinical data.
The COVID pandemic has only stressed the need for better treatments from mental illnesses. Two of the indications that are being studied by psychedelic therapy firms are major depressive disorder (MDD) and post-traumatic-stress-disorder (PTSD). We believe these indications have massive total addressable markets (TAMs) and are favorable on the potential value that can be created for firms that successfully develop a treatment for them.
Earlier this month, Nature published the results from a Phase 3 clinical trial on MDMA as a treatment for PTSD. The study was conducted by the Multidisciplinary Association of Psychedelic Studies (MAPS) and the data that was reported was positive. According to the study, 67% of participants receiving MDMA therapy reported a reduction in symptoms after 18 weeks and three sessions.
Patients who received the therapy reported a substantial decrease in the number nightmares they have. Less than a third of the control group had similar outcomes and the data shows that adding MDMA to the treatment regimen helps patients overcome PTSD faster.
Over the next year, we expect to receive clinical data from companies like MAPS, Cybin, and ATAI Life Sciences. We believe the industry has substantial growth prospects and will monitor how it benefits from positive clinical trial data.
If you are interested in learning about psychedelic therapy companies that are in advanced clinical trials, please send an email to firstname.lastname@example.org with the subject “Biotech Psychedelic Companies” to be added to our distribution list.