VC Executive Shares Insights into Legal Psychedelics Landscape

May 27, 2022 12:38:00

These past few years, an increasing number of studies on psychedelics have been conducted, with researchers finding that these substances may be used as alternative treatments for mental health conditions such as depression and anxiety. The latest data from World Health Organization shows that the international prevalence of depression and anxiety increased by roughly 25% in the first year of the coronavirus pandemic, and drugs such as psilocybin, MDMA and ketamine are now being studied to develop treatments for everything from depression to PTSD.

In a recent interview, some specialized VC’s were asked to give their insights into the psychedelic field. Included in the group was Tim Schlidt, Palo Santo cofounder and partner,  When asked about what applications of psychedelics he was most excited about, especially with regard to mental health, Schildt stated that the applications of these compounds for obsessive compulsive disorder were interesting. He explained that studies at Yale  had shown how obsessive compulsive disorder manifested made the disorder to be more of a motor disorder than a disorder with a psychological underpinning.

Schlidt also noted how psychedelics were being used for inflammatory disorders was interesting. He explained that work by Charles Nichols had shown that some psychedelic compounds were anti-inflammatory when administered in low doses. He added that he was excited by drug developers who were working with psychedelics, noting that next-generation drugs would improve on qualities such as potential cardiac liability and neurotoxicity, which would lead to the manufacture of better and more commercially viable medications.

Overall, psychedelic therapies have shown great promise for a range of substance-use disorders. For instance, there has been compelling data around the use of psilocybin in helping patients stop smoking and even managing alcohol use disorder. Separate research has also shown that ibogaine could be effective in managing symptoms of opioid use disorder.

Neuropathic pain is another field of inquiry that is compelling, with various studies currently focused on exploring the use of psychedelics in treating migraines, cluster headaches and even fibromyalgia.

When asked about merger and acquisition activity in the psychedelic space, Schildt highlighted big pharma’s interest in the psychedelic space, giving the example of Otsuka, which has made investments in Mindset Pharma and Compass Pathways.

It is expected that once certain drugs achieve phase 2 readouts, large acquisitions will be observed. Experts expect that by 2026, merger and acquisition activity will increase as more compounds advance into the clinic, and the prospects of this are high, given that plenty of companies, including Cybin Inc. (NYSE American: CYBN) (NEO: CYBN). are advancing numerous drug-development programs.

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

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