Medical Benefits Fueling Psychedelics Business Boost
INN chatted with Adele Byrne, senior analyst at Prohibition Partners, about the early start for the psychedelics market.
One business expert believes the medical benefits of psychedelic substances can’t be ignored and are leading to the rise of the industry.
Adele Byrne is a senior analyst with Prohibition Partners, a drug research firm specializing in the cannabis industry. Earlier this year, the firm launched its first psychedelics report, outlining key aspects of the market for new observers and those looking to jump in.
The Investing News Network (INN) caught up with the expert to discuss the early stage that psychedelics investments are in right now, and how she has started to evaluate the sector.
In March, Prohibition Partners put forth its first big study on the world of psychedelics. Titled PSYCH: The Psychedelics as Medicine Report, the study presents an overview of the emerging psychedelics space and a breakdown of the substances as promising treatments for mental health issues.
“It’s sort of becoming impossible to ignore in terms of the scientific evidence that’s accruing … and the potential that these compounds have for treating mental health conditions,” Byrne said.
The report from the firm offers a way to get started in the industry and considers the early promise attached to psychedelics.
Byrne told INN the interest for psychedelics came as a natural progression for Prohibition Partners, since cannabis — the firm’s main area of focus and where its work has centered so far — can be identified as a psychedelic drug.
“We decided we have this expertise in cannabis, we’ve got all this research, this data, this intelligence lab, why don’t we see about applying it to this new emerging market,” said Byrne. “Because we were noticing also that some cannabis companies were looking to dip a tentative toe into psychedelics as well.”
The rise in attention from the public matched the internal conversations at Prohibition Partners, according to the senior analyst.
However, while the two industries may be grouped together by some investors, Byrne said there needs to be attention into just how different they are despite some comparisons.
“There’s an argument to be made that cannabis paves the way in terms of changing attitudes and values, opening people’s minds to look at formerly scheduled plants in a different way for treating mental health conditions. But I think that they’re very different. And that psychedelics have to be viewed in a different way,” Byrne explained to INN.
The expert told INN investors may be looking at the advantage of securing a first-mover place when it comes to placing bets on the companies already out there. But she emphasized that a wide selection of these names will focus on costly and time-consuming drug development programs.
“It’s not going to be a ‘cash cow tomorrow’ sort of situation,” Byrne said.
However, she said investors shouldn’t be discouraged as the sector is rapidly accelerating, and some studies are set to produce results in the not-too-distant future.
The current expectation in the market is that the Multidisciplinary Association for Psychedelic Studies, a non-profit group, is poised to obtain approval for its MDMA-based treatment of PTSD in the next two to three years.
“I think that there’s enough going on to hold (the interest of investors) who are looking at the next big thing and the next new investment opportunity,” Byrne said.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.