VIDEO: Breaking Taboos, Building Portfolios With Psychedelics

Welcome to my video presentation for Tuesday, February 20. The article below is a condensed transcript; my video is a “deeper dive” that contains charts and additional details.

The psychedelics industry, which is ancillary to the marijuana market, continues to enter the medical mainstream. An increasing number of scientific researchers and publicly traded companies are pursuing psychedelics as a valuable medicine and a recreational outlet. Proactive investors stand to make big gains.

In the U.S., psychedelics such as psilocybin (the psychoactive ingredient in magic mushrooms) and LSD remain illegal at the federal level as Schedule I substances, but state laws are rapidly changing to lift these restrictions. What’s more, regulatory agencies are giving researchers and drug developers easier access to psychedelics. The taboos are falling by the wayside.

According to a recent report by the Business Research Company, the global psychedelics market will reach $8.3 billion in 2027, for a compound annual growth rate between 2024 and 2027 of 14.4%. The biggest driver of growth will be the increase in cases of chronic mental illnesses that are untreatable by conventional drugs. Depression is a worldwide scourge and psychedelics could hold the key to alleviating the suffering.

Many marijuana companies are making major investments in psychedelic substances, to get ahead of the curve as psilocybin, LSD, and several substances transition from illicit activities to profitable ventures.

Big Pharma is getting into the act, knowing that big money is at stake. Many major pharmaceutical firms are plowing considerable research and development into psychedelics because they recognize that these drugs are the future for treating chronic depression, anxiety, physical pain, emotional trauma, and a host of ailments.

The number of clinical trials exploring the drug treatment potential of psychedelics has been rapidly increasing around the world, with promising results (see my video for charts). The two major specific goals are the relief of depression and pain, but targeted end uses vary. North America and Europe account for the majority of these drug trials.

Several recent studies have found that psychedelic-assisted psychotherapy appears to be well-tolerated and safe among older demographics, underscoring its potential utility in addressing psychological distress in this population segment. Regulators are taking notice.

Let’s examine the latest news in the world of psychedelics.

The European Union gives support…

The European Union in January 2024 allocated funding for a clinical investigation aimed at examining the impacts of psilocybin on individuals in palliative care facing end-of-life anxiety and depression due to terminal conditions such as chronic obstructive pulmonary disease, multiple sclerosis, and atypical Parkinson’s disease. This marks the first occasion whereby the EU has provided complete financial backing for a psychedelic study, allotting over $7 million for the initiative.

The trial started late last month. It involves administering two sessions of psilocybin to participants, with initially a lower dosage to acclimatize them to the experience. Some participants are administered a placebo. Subsequently, individuals will engage in several sessions with therapists who will tailor their approach to accommodate the specific medical conditions of each participant.

Whoa, Canada…

According to a survey published last month by The Journal of Palliative Medicine, 79% of Canadians endorse the therapeutic utilization of psilocybin for terminally ill patients. Moreover, over four out of five Canadians (84.8%) favor the coverage of intervention costs by the public health system, with 63% supporting the medical legalization of psilocybin.

The survey also revealed heightened support for end-of-life psilocybin treatment among respondents who had witnessed the distress of a loved one undergoing palliative care, suggesting a predisposition towards novel approaches aimed at ameliorating end-of-life suffering.

The FDA creates a path…

This month, representatives from the U.S. Food and Drug Administration (FDA) convened alongside researchers at a public gathering in Washington, DC to explore future steps in advancing research for psychedelic medicines.

Over the course of a two-day conference held in February by the Reagan-Udall Foundation, various FDA officials delved into the agency’s efforts to foster clinical trials investigating the therapeutic potential of substances such as psilocybin and MDMA.

This development follows the issuance of groundbreaking draft guidance by the FDA several months ago concerning studies on psychedelics. This guidance serves as a blueprint for scientists to conduct research aimed at pioneering new medicinal treatments.

Shrooms in “The Land of Enchantment”…

A New Mexico Senate committee last week unanimously approved a bipartisan resolution requesting that state officials research the therapeutic potential of psilocybin and explore the creation of a regulatory framework to provide access to the psychedelic.

The resolution cites various studies supporting the therapeutic benefits of psilocybin for conditions such as major depression and substance abuse, while pointing out that the FDA has designated the psychedelic as a “breakthrough therapy.”

To that end, the measure states that the New Mexico health department should look into “necessary statutory or regulatory frameworks for developing” a state-level psilocybin program.

Your guide to making profits in psychedelics…

Every portfolio should have exposure to companies in the cannabis and psychedelics industries. That’s why you should consider my trading service Marijuana Profit Alert.

MPA can help you make money from the investment bonanza in marijuana, psilocybin, and other psychotropic drugs. Click here to learn more.

John Persinos is the editorial director of Investing Daily.

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