The burgeoning marijuana industry has presented numerous investment opportunities for individuals and companies alike. The psychedelic drug market, which is still immature, seems to be following this trend, with projections showing that its market size will have reached almost $11 billion by 2027.
Most analysts agreewith a capital markets analyst from Canaccord Genuity, who estimates that psychedelic substances such as LSD and psilocybin could create an investment opportunity worth nearly $100 billion.
Data from the CDC shows that the number of Americans suffering from suicidal thoughts, depression and anxiety almost doubled during the coronavirus pandemic. Numerous studies have also shown the effectiveness of psychedelics such as LSD in treating various mental health conditions. With the increasing acceptance of adult-use and medical cannabis in the last 10 years and the number of individuals struggling with mental health issues growing, the use of psychedelic substances in treating mental health disorders is being re-assessed.
Both the marijuana and psychedelic industry have some similarities, which may be useful to one who is familiar with either. Below are a few things you should know/keep in mind if you’re planning to get involved in the psychedelic industry.
Don’t equate success in the marijuana industry to success in the psychedelic industry
Businesses involved in the marijuana industry usually seek approval from the state, which can be achieved through many ways. On the other hand, psychedelic biotechnology companies seek approval from the FDA to use psychedelics as pharmaceutical drugs, which is a long and often demanding process.
Destigmatization of psychedelic substances is needed
Cannabis legalization has helped drive the acceptance of psychedelics. However, the substances are yet to go mainstream. Only a few cities in the country have decriminalized psilocybin mushrooms, namely Washington D.C., Denver, Santa Cruz and Oakland.
The state of Oregon is the only state in the country that has decriminalized all psychedelic substances. A lot of progress is needed to decriminalize and legalize the substances, and it all begins with their destigmatization.
How will it benefit your company?
If you are already involved in the marijuana industry, venturing into the psychedelics industry will help diversify your company’s business portfolio.
A lot of time will be needed
A lot of research has found that psychedelic substances can be used as alternative treatments for mental health conditions, given their effectiveness. The small temporary relief or no relief that is provided by conventional medicines that treat anxiety, addiction and depression only further encourages the use of psychedelics.
For psychedelic drugs to be approved for use, however, FDA approval is needed, which could take years. So, if you’re planning to participate in this immature but promising industry, make sure you have a good reimbursement strategy and plenty of money.
Fortunately, you may not need sacks of money unless you intend to own a psychedelic startup. This is because plenty of companies, including Tryp Therapeutics Inc. (CSE: TRYP) (OTCQB: TRYPF), are publicly traded and reduce the barriers to entry for those interested in making an investment in this nascent sector.
NOTE TO INVESTORS: The latest news and updates relating to Tryp Therapeutics Inc. (CSE: TRYP) (OTCQB: TRYPF) available in the company’s newsroom at https://ibn.fm/TRYPF
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