Report on Psychedelics 2020
The NEO Exchange recently published their first Report on Psychedelics, entitled “Learning the Landscape.”
In it, the organization produces “reliable, independent data, analysis, and intelligence about the emerging psychedelics industry, including coverage of research developments, legislative changes, and business trends.”
Feel free to download the report in its entirety, but we’ve pulled out some interesting components for your convenience.
Market Conditions
According to the report:
Several companies, located in nations such as Canada, Germany, the United Kingdom, and the United States, have entered the market for psychedelic drugs. Nearly $150 million USD was invested into this nascent industry in the first half of 2020 in the form of private round funding for six leading psychedelic startups
[Specifically: COMPASS Pathways ($80M), Atai Life ($24M), MindMed ($24M), Field Trip Health (Psychedelics) ($8.5M), Numinus ($5.7M), and Orthogonal Thinker ($6M). All amounts indicated in United States Dollars (USD)]
It is estimated that, globally, 300 million people suffer from depression. The market for antidepressant drugs for this condition is estimated to be $15.9 billion in 2023. About 100 million suffer globally from the treatment-resistant variety of depression (TRD). The potential of psychedelics to effectively treat this large patient population is obvious and often a significant motivator for investors and startups focused on this emerging market segment.
Data Bridge Market Research estimates that the global psychedelics market will reach nearly $7 billion by 2027 (from $2 billion in 2019). This growth can be attributed in part to increasing acceptance of psychedelic drugs for the treatment of conditions such as depression, PTSD, and substance addiction. Some industry observers also cite global increases in depression and mental disorders as contributing factors leading to the formation and predicted growth of the emerging psychedelic drugs and treatment market.
Clinical Trials
Research and discovery are pivotal to the growth of this sector, however clinical trials provide the data necessary to prove the efficacy and potential of the treatments.
In a landmark decision carrying significant advantages for organizations within the psychedelic research and product formulation industry segments, the FDA in 2017 began granting Breakthrough Therapy Designation status for psychedelic substance research to two organizations: MAPS for studies into the use of MDMA for the treatment of PTSD and COMPASS Pathways for psilocybin research into treatment of severe treatment-resistant depression. Other organizations have since been granted this designation by the FDA for related clinical trials involving psychedelic drugs.
Breakthrough Therapy Designation is currently facilitating a variety of clinical trial research initiatives by both MAPS and other non-profit and for-profit organizations that will significantly advance the evidence favoring MDMA and other psychedelic drugs as therapeutic adjuncts or elements in the treatment of various diseases.
If you want to know more or you have questions, feel free to download the rest of the report, or contact us directly.