2020: A Bad Year for the Global Economy, a Good Year for the Psychedelics Industry

January 6, 2021 14:26:43

Last year was a good year for many psychedelic companies and psychedelics in general, as they went mainstream, with many substances being studied for the potential to treat various mental health conditions.

Various psychedelic companies — those dealing with production as well as research — moved into investment markets, with roughly 24 companies going public between February and December 2020.

The first among these was Mind Medicine Inc. (NEO: MMED) (OTCQB: MMEDF), which became the first psychedelics firm to debut an IPO in Canada, launching March 3 on the NEO exchange. Canada’s conducive environment for small-cap venture investment set up the perfect path for psychedelic firms to launch in public markets, following the path cannabis took earlier in 2014.

While some psychedelic firms preferred the rather expensive IPO route, others decided to go public through reverse takeovers with mining sector shell companies.

The Multidisciplinary Association for Psychedelic Studies (“MAPS”) has advanced its research program, which is studying the use of MDMA as an alternative treatment for PTSD. This has brought the legalization of the first psychedelic drug in the United States even closer.

Currently, the nongovernmental organization is leading an MDMA phase 3 clinical trial. This comes after more than three decades of advocacy work. In August 2020, the organization closed a funding round worth $30 million to finish the final research required to persuade the Food and Drug Administration to legalize MDMA federally.

MAPS notes that the FDA has been supportive of this research, given that the agency granted a breakthrough therapy designation to MDMA-assisted psychotherapy. The organization hopes that the treatment will be approved by the FDA in 2022, with widespread commercialization beginning as early as 2023.

Apart from classic psychedelics such as DMTpsilocybinmescaline and LSD, psilocybin has made the most progress with regard to treatment availability and legalization.

Last year, the highest number of psilocybin research and studies published to date was recorded, with the National Institute of Health PubMed registered 118 psilocybin publications. This number is almost twice the number of publications recorded in 2019.

One of the publicly traded psychedelics companies mentioned above, Cybin Inc. (NEO: CYBN), deserves an additional note because of the recently announcement that it had entered into a partnership with Toronto-based psychedelics research center, the Center for Psychedelic Science.

NOTE TO INVESTORS: The latest news and updates relating to Cybin Inc. (NEO: CYBN) are available in the company’s newsroom at https://ibn.fm/CYBN

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