At the start of last year, only a few psychedelic companies were trading on the exchange markets, with Compass Pathways (NASDAQ: CMPS) and Mind Medicine (NASDAQ: MNMD) (NEO: MMED) (“MindMed”) among them. However, this year saw a number of IPOs, which increased the total number of public psychedelic companies trading on the market. These companies include Atai Life Sciences (NASDAQ: ATAI), Field Trip Health (NASDAQ: FTRP) and Delic Holdings Corp. (CSE: DELC) (OTCQB: DELCF).
This increase brought more resources to the space, which helped ensure its survival. In addition, it widened the scope of treatments being researched as well as the total number of researchers studying psychedelic substances.
With regard to funding, we all know that clinical trials are expensive. Completing phases 1, 2 and 3 of a clinical trial costs millions of dollars, even when the eventual results don’t meet expectations. A study that was conducted recently has found that the cost of bringing one successful new medication to market is about $980 million. This means that companies need to be able to raise millions of dollars if the sector is to survive.
Last year, those requirements were met, with estimations showing that more than $2 billion was raised by the psychedelics sector last year. Atai Life Sciences raised approximately $400 million, with MindMed and Compass Pathways also raising large amounts throughout the year. These funds help secure the stability of these companies, even if their stock prices fall at some point. This is in addition to ensuring that the required discovery work and clinical work is continued.
Last year also saw the completion of major clinical trials, including the phase 3 clinical trial conducted by the Multidisciplinary Association for Psychedelic Studies, which looked into the use of MDMA as a treatment for PTSD when used in conjunction with psychotherapy. The trial found that more than 65% of post-traumatic stress disorder patients improved significantly with another 21% observing substantial decreases in their symptoms. These results were exciting, which was a relief because ultimately the success of the psychedelic medicine industry will depend on whether the medicines can effectively treat conditions such as depression and post-traumatic stress disorder.
Compass Pathways also conducted a clinical trial that evaluated the use of its COMP 360 psilocybin formulation in the treatment of major depressive disorder. The open-label study also produced promising results, which cements the hypothesis that psychedelics possess the potential to treat mental health disorders.
While last year was a pivotal year for the psychedelic field, it is expected that the industry will see more companies launching IPOs this year as well as more mergers and acquisitions, which will draw more funding to the field and facilitate more clinical trials.
NOTE TO INVESTORS: The latest news and updates relating to Delic Holdings Corp. (CSE: DELC) (OTCQB: DELCF) are available in the company’s newsroom at https://ibn.fm/DELCF
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