In recent years, the psychedelics industry has grown tremendously, offering new opportunities. Therefore, investors can take advantage of this growth and evolvement possible through investing in psychedelics. Since psychedelics can revolutionize medicine, it has provided an eye-watering elevation in capital flows pampering it into the market. This has led to even more developments; however, since the market is a bit complex, it can be challenging to understand.
Sectors in Psychedelics Industry
According to the different stages in the supply chain, there are eight major market segments in this industry. These sectors include;
Manufacture and Supply
This segment comprises companies that operate cultivation facilities or manufacture psychedelic drugs synthetically. Companies planning or possessing licenses to produce or cultivate psychedelics may also fall in this category. Companies operating in this sector usually believe that their approach can generate more pharmaceutical-grade yields at a reduced cost compared to the existing extraction methods.
Retreats and Clinics
This sector mainly focuses on delivering psychedelic therapies through retreats and clinics. Currently, regulated psychedelic therapies are becoming popular globally through psilocybin retreats and ketamine clinics. Even though access to legal therapies is not widespread, there are various available companies in this sector leading the way for regulated experiences. For instance, Imperial College London partners with Amsterdam-based synthesis to gather and examine guest data, thus improving the efficacy of these programs.
Microdosing and Adult Use
This sector deals with the recreational uses of legal psychedelics. While psilocybin is illegal in the Netherlands, magic truffles are not; however, they are fungi. Psilocybin grows above the ground while truffles grow underground, with different regulations in this country. Thus, companies in the Netherlands use these differences to their advantage; for example, the retail startup PharmaDrug companies.
Drug Delivery Methods
Primarily, this sector involves psychedelic therapies involving drug delivery methods. Multiple companies in this sector have filed provisional patent applications regarding innovative delivery methods. These methods include nasal sprays, orals strips and hard-shell capsules.
Tele-Medicine and Industry Tech
This sector primarily deals with software development and telehealth. Large psychedelic companies are elevating their focus on digital therapeutics, thus generating a new direction for the industry. For instance, Mindleap, a telehealth company, has developed a platform that links mental health patients with professionals, thus allowing patients access to psychedelic-based therapies.
CPGs and Nutraceuticals
Usually, it includes consumer-packed goods like functional mushrooms. With the growing awareness of psychedelics to treat physical and mental ailments, the psychedelic consumer packaged goods segment has great potential. Nevertheless, this discovery is still in its early stages. Therefore, it is not surprising to find companies entering the operation mushroom market for an additional revenue source.
Patents and IP
Included here involves companies building psychedelic patent portfolios, especially in the biotech arena; patent applications are a success in the emerging psychedelics industry. Companies in the psychedelics industry utilize patenting as a distinct competitive advantage, thus leading to innovation advancements. Nevertheless, the concept of patenting psychedelics is still largely debatable.
Clinical Trials and R&D
This involves clinical trials or research and development involving psychedelics. Even though multiple companies shepherd drug candidates via clinical trials, most of them are still in phase two. For instance, Tryp Therapeutics expected to introduce two phase 2a clinical trials last year. It can then apply for drug approval after the 3rd phase trials have been finished.
