The global psychedelic therapeutics market is poised for significant growth, with a projected compound annual growth rate (CAGR) of 14.92 per cent from 2023 to 2031.
According to a report by the analytics firm InsightAce Analytic Pvt. Ltd., the market, which was valued at $3.94 billion in 2022, is expected to reach $13.29 billion by 2031. This surge is attributed to the increasing prevalence of mental disorders and the growing interest in psychedelic medicines as potential therapies.
Psychedelic medicines such as DMT, LSD, psilocybin and psilocin which include both chemicals and plants, are used to treat various mental disorders such as resistant depression, opiate addiction and panic disorder. These substances are potent psychoactive chemicals that alter perception, emotion and other cognitive functions and research has shown its potential in medicine.
The report highlights that the increasing prevalence of depression due to rising stress levels and the growing rate of chronic diseases worldwide is expected to drive the global psychedelic medicines market expansion.
Additionally, changes in lifestyles and quality of living are fueling the growth of the psychedelic medicine market. Also, the increasing dependency on psychological drugs is creating a demand for alternative treatments.
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Key developments mentioned in the report include COMPASS Pathways plc’s (NASDAQ: CMPS), strategic agreement to establish The Centre for Mental Health Research and Innovation in the UK in March 2022. The Centre aims to accelerate research into developing psychedelic treatments, promote therapist training and certification, analyze real-world evidence, and prototype digital tools to facilitate personalized, predictive, and preventative care models.
In November 2021, Seelos Therapeutics (NASDAQ: SEEL), Inc. and iX Biopharma Ltd (SGX: 42C) signed an exclusive licensing agreement for Wafermine, a sublingual racemic ketamine wafer, and further products integrating R- and S- enantiomers of ketamine using the WaferiX technology.
In May 2021, Mind Medicine Inc. (OTCMKTS: MMDCF) announced the initiation of Project Angie to promote the research and development of psychedelics, including LSD, as pain treatments.
The changes in Australian regulation allowing psychiatrists to treat severe cases of depression and anxiety has led to many organization mobilize psychedelics commercialization.
Some major key players mentioned in the report include MAPS Public Benefit, MindMed (NASDAQ: MNMD), Janssen Pharmaceuticals (NYSE: JNJ), iX Biopharma, COMPASS Pathways plc, Eleusis Benefit Corporation, AWAKN Life Sciences Inc (NEO: AWKN), Cybin (NEO: CYBN), CB Therapeutics, Numinus Wellness (TSXV: NUMI), Mydecine Innovations Group (NEO: MYCO), Optimi Health (CSE: OPTI), PharmaTher (CSE: PHRM), ATAI Life Sciences (NASDAQ: ATAI), Incannex Health (ASX: IHL) and Delix Therapeutics among others.
