The psychedelics industry has evolved from a stigmatized counterculture phenomenon to a scientifically robust industry. There is increasing acceptance of psychedelic drugs as a promising avenue for the development of new treatments of mental health disorders. Interest is being driven by their great clinical potential to treat conditions with high unmet medical needs including depression, substance-use disorders, and pain. The urgent need for new treatments in these areas has been exacerbated by the COVID-19 pandemic.
Clinical development programs are now underway following a standard regulatory route. Support from the FDA for the development of synthetic psychedelics as approved treatment options has added to the huge investor interest over the past 18 months, with VCs at the center of the investor boom. Forecasts suggest that investment in the psychedelics sector could reach $6.85 billion by 2027.