NEW YORK, Oct. 14, 2020 /PRNewswire/ -- Compelling evidence of the therapeutic benefits of psychedelic drugs appears in multiple scientific studies. Several clinical trials are underway in the United States and worldwide to investigate the therapeutic effects of psilocybin, the active component in the fungi known colloquially as "magic mushrooms." There is new hope for treating such debilitating disorders as depression, anxiety, post-traumatic stress disorder, anorexia, obsessive-compulsive disorder, and addiction. With more than $6.8 billion on the line by 2027, companies at the vanguard of the psychedelic therapeutic drug market could reap enormous benefits in the coming years. Some of these companies, such as Cybin Corp. (Cybin Profile), which focuses on drug development and unique delivery mechanisms, are targeting areas that have been particularly underserved in the past decade. Those areas encompass life-disrupting psychiatric and neurological conditions such as major depressive disorder (MDD), addictions, and other mental illnesses. A pioneer in the psychedelic sector, CYBIN is working toward becoming the first life sciences company to bring a psilocybin drug targeting MDD to market. A successful outcome could completely upend treatment protocols. The psychedelic space's promise is perhaps best illustrated by the sector's largest-ever private financing round of $80 million for Compass Pathways (NASDAQ: CMPS), the first psychedelic company to IPO on the NASDAQ. Not to be outdone, Mind Medicine Inc. (OTCQB: MMEDF) is following suit; the company applied for NASDAQ uplisting last month. In addition, Field Trip Health Ltd. (CSE: FTRP) started trading on the Canadian Securities Exchange (CSE) earlier this month. Other companies operating in the psychedelic space are making other significant moves, including
Numinus Wellness Inc. (OTCPK: LKYSF), which just began Psilocybe mushroom cultivation at its Health Canada licensed laboratory.
- A new report notes that the psychedelics drug market is expected to total approximately $6.8 billion by 2027.
- CYBIN committed to lead in delivering an entirely new marketplace of safe, effective drugs derived from psychedelics.
- An impressive leadership team with more than 100 combined years of experience in pharma, biotech, and drug policy guides the company.
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A new market study of the U.S. psychedelic drug space forecasts that the market is projected to grow at 16.3%. Factors such as increasing prevalence of depression and mental disorders drive that growth. The Data Bridge Market Research report notes that the market is expected to total approximately $6.8 billion by 2027, up from $2 billion in 2019. In addition, the report specifically highlights the growing acceptance of psychedelic drugs for treating depression along with the increasing prevalence of depression and mental disorders as significant factors in that anticipated growth.
This expected increase isn't going unnoticed by investors. The first psychedelic company to trade on NASDAQ, Compass Pathways, recently entered the public markets with an initial public offering price of $17 per share; the price shot up to close at $38.39 within only a few days.
"Psychedelics have been put on the back burner for 50 years and are now having a Renaissance," said big pharma veteran Doug Drysdale, Cybin Corp.'s recently appointed CEO. In his view, "the hundreds of studies that have been conducted over the past 10 to 20 years" at highly respected institutions such as Johns Hopkins University, New York University, the Multidisciplinary Association for Psychedelic Studies, and the Toronto Center for Psychedelic Science have made it clear that psychedelic molecules have "tremendous potential for patients with depression, PTSD and addiction."
New Marketplace of Psychedelic Drugs
With over three decades of pharmaceutical experience under his belt, Drysdale has identified Cybin Corp. as the most promising company in the sector. Hence his decision to come aboard as a company leader. In one of his first interviews as CEO of the life sciences innovator, Drysdale noted that early investor validation made him feel comfortable and optimistic. "This speaks to the strength of the team and our founders," he stated.
Cybin has raised more than $10 million since inception and is deeply committed to focusing on drug innovations surrounding mental illness. Studies indicate that one in four people in the world will be affected by mental or neurological disorders at some point in their lives. Cybin believes that the next decade will deliver encouraging data from psychedelic studies that potentially create an entirely new marketplace of safe and effective drugs derived from psychedelics.
The company has already established a pattern of innovation. Earlier this year, Cybin entered into a feasibility agreement with IntelGenx Corp. for the development of an orally dissolving film for the delivery of pharmaceutical-grade psilocybin.
"Compared to oral psilocybin capsules, which are subject to variable intestinal absorption and high first-pass metabolism in the liver, the systemic bioavailability of orally dissolving psilocybin film is expected to be quite high," said Cybin's chief medical officer, Jukka Karjalainen MD. "Additionally, the dose of psilocybin administered by an orally dissolving film is expected to be a fraction of the requirement in oral capsules. These features have the potential to increase both the safety and efficacy of psilocybin when administered in this manner."
As part of that agreement, Cybin is currently involved in an oral-film bioequivalence study designed to compare molecular delivery of psilocybin through its fast-acting oral films in contrast to capsules. That is only one of the clinical trials and studies in the company's pipeline.
In addition, the company has the following studies and trials:
- A phase 2a and phase 2b clinical trial to fast track drug approval targeting MDD.
- A clinical safety and efficacy study targeting microdosing that may lead to a clinical trial for anxiety, ADHD and overall cognitive flexibility
- A phase 2 clinical trial targeting addition through the delivery of psilocybin through an oral film, with further studies leveraging a transdermal, "slow-dose" delivery mechanism.
Cybin Corp. appears to be a rock-solid prospect. Guided by an impressive leadership team with more than 100 combined years of experience in pharma, biotech and drug policy, the company is firmly establishing its presence in sectors with billion-dollar potential.
Burgeoning Psychedelic Sector
A recent U.S. News and World Report article notes that "the burgeoning psychedelic sector is attracting attention from investors as more companies have gone public, and research has increased rapidly due to greater mainstream and government acceptance and decriminalization. . . Dozens of biopharmaceutical companies are competing against each other since the ones that develop the intellectual property to synthesize the molecules to help treat disorders will likely be profitable and attract more capital."
Cybin isn't the only company savvy enough to see what's on the horizon for a new class of drugs that appear to effectively treat mental disorders such as depression, suicidal thoughts, PTSD and anxiety.
Compass Pathways Plc (NASDAQ: CMPS) made an indelible impression on its first day of trading on NASDAQ. The first psychedelic company to trade on the market, CMPS shares surged 70.6% to close at 29.00, lifting the market cap to about $1 billion. Just the day before, the company had announced an upsized pricing for its IPO. The impressive showing may be based, in part, on backing from billionaire investor and PayPal co-founder Peter Thiel. The company's first major initiative is developing psilocybin therapy through late-stage clinical trials in Europe and North America for people with treatment-resistant depression.
Following close behind, Mind Medicine Inc. (OTC: MMEDF), a drug-development company for psychedelic-inspired medicines, evaluated an expanded United States investor base through an uplisting on NASDAQ. As part of this strategy, MindMed has applied to list its subordinate voting shares on NASDAQ. That listing is subject to several regulatory requirements.
"The psychedelic medicine industry is maturing and expanding rapidly, and we want to grow with it," said MindMed co-founder and co-CEO JR Rahn. "We look forward to working with Canaccord Genuity to evaluate the opportunity for an uplisting on NASDAQ and help us navigate M&A opportunities now available to the company."
With its new CSE listing, Field Trip Health Ltd. (CSE: FTRP) launched a new website and provided details about its integrated platform, which combines psychedelic-enhanced psychotherapy, technology-enabled clinical hubs and telehealth remote care, as well as drug and product development. "Our public listing will increase our visibility among investors as we continue our work to transform attitudes and approaches to mental, emotional and behavioral health through psychedelics," said Field Trip CEO Joseph del Moral. "Transparency and open communication with our shareholders will remain a top priority going forward."
Numinus Wellness Inc. (OTC: LKYSF) began cultivating Psilocybe mushrooms at its 7,000-square-foot cultivation facility. The company is committed to creating an ecosystem of health solutions centered on developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies. Under its Health Canada license for the production and extraction of psilocybin from mushrooms, Numinus intends to cultivate and harvest the mushrooms for a variety of purposes. Those purposes include development of standardized extraction methods and the exploration of product formulations of naturally occurring psilocybin.
With a steady stream of new studies and available research, plus an upsurge in support from all sides, the multi-billion-dollar psychedelic drugs market offers an almost irresistible opportunity for investors.
For more information about Cybin Corp., please visit Cybin Corp.
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