In the past couple of years, biopharmaceutical firms focused on psychedelic medicines have increased in number. Two weeks ago, UK’s first psychedelic investment fund was launched. The fund is committed to psychedelic health care and hopes to invest in psychedelic medicines to treat conditions such as anxiety, addiction and depression.
The fund was established by VC Neo Kuma Ventures, an organization based in London, which was formed by Nick David, Clara Burtenshaw and Sean McLintock in 2019. In the same year, the founders of Neo Kuma gave their support to ATAI Life Sciences AG, the co-owner of COMPASS Pathways (NASDAQ: CMPS). Based in the UK, Compass Pathways is working on developing medicines made from artificial psilocybin. Psilocybin is a psychoactive component found in magic mushrooms.
Earlier this year, Compass Pathways became the first psychedelic pharmaceutical firm to issue shares to the public on Nasdaq. The company raised $127 million and is currently trading at a $1.98 billion market cap.
At the same time, Field Trip Health (CSE: FTRP) (OTCBB: FTRPF), a psychedelics company based in Toronto, went public on Canada’s SE after concluding a reverse takeover of Newton Energy Corp, a gas-and-oil company. This move followed a private placement deal worth CAD$12 million. In addition to providing ketamine-assisted treatment centers, the company is developing FT104, a new synthetic hallucinogen for mental health conditions.
A report published earlier this year by Data Bridge Market Research forecasts that the market for psychedelic drugs will grow at about 16% per annum over the next eight years. By 2027, the market’s projected worth could total $6.85 billion. Novel therapies such as the esketamine treatment for treatment-resistant depression by Johnson & Johnson and commonly referred to as Spravato have contributed to this growth.
Neo Kuma correlates with the medicinal marijuana market, referring to research suggesting that the U.S. medical cannabis market has grown to nearly $35 billion in 2020, from a market worth roughly $2 billion six years ago. McLintock explained that the industry for psychedelics is set to grow rapidly as regulators embrace psychedelic drugs and the medicinal benefits that psychedelics possess become more commonly known.
McLintock added that Europe is the center of the growing psychedelic health-care sector, despite a lot of conversation in the United States surrounding psychedelics. He then stated that the company looked forward to investing in scientifically sound and high-quality psychedelic firms operating in the industry to help advance innovative research.
Not many firms are positioned to take advantage of the rapidly evolving functional mushroom and psychedelic medicine sectors. However, Canadian-based Pure Extracts Technologies Corp. (CSE: PULL) has for years been active in the extraction of active compounds from cannabis. The company is now deploying those capabilities in the functional mushrooms and psychedelics medicines space before other companies wake up to this huge opportunity.
NOTE TO INVESTORS: The latest news and updates relating to Pure Extracts Technologies Corp. (CSE: PULL) are available in the company’s newsroom at https://ibn.fm/PULL
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