Psychedelic Medicine Goes Mainstream
Jandrix@tolaalejandro
The idea
I believe psychedelic drugs like psilocybin and LSD are becoming legitimate treatments for depression and anxiety, not fringe therapy. To express this I weight the basket toward smaller developers most likely to be acquired next, pair them with the frontrunners closest to actually launching a drug, and add a steadying slice of big pharma already buying into the space. I hold 15% in cash to add on weakness, and I'd rethink the idea if trial results or FDA filings start disappointing rather than confirming the science.
What will be bought
- Smaller psychedelic drug developers with late-stage drugs have become acquisition targets for large drugmakers, typically at a substantial premium. · Helus Pharma (Cybin Inc.)Depression trial results due imminently will determine whether the drug candidate remains on track for potential approval., GH Research PLCIt is developing a fast-acting psychedelic treatment that requires much shorter clinical sessions than psilocybin, making it an attractive buyout target as large drugmakers shop for pipeline assets.32%
- These companies are closest to obtaining regulatory approval and commercializing psychedelic treatments, positioning them to benefit most directly from mainstream adoption. · Compass Pathways plcIt is closest to commercializing a psilocybin depression drug, with an FDA filing on track and a planned launch contingent on regulatory approval and drug reclassification., Definium TherapeuticsLSD-based drug has completed Phase trials for both depression and anxiety, putting the company in position to pursue regulatory filing.30%
- Large pharmaceutical companies are actively acquiring psychedelic drugs or already operate supervised in-clinic mental health treatments, providing portfolio stability while participating in the sector's growth. · Eli Lilly and CompanyIt committed to acquire a psychedelic drug developer, signaling that large pharmaceutical companies see genuine market potential in supervised in-clinic psychedelic treatments., AbbVie Inc.It acquired a next-generation psychedelic drug and is advancing it through trials, demonstrating active participation in the sector while its diversified business reduces portfolio volatility., Johnson & JohnsonIt already sells a supervised in-clinic mental health treatment, proving that payers and physicians will fund this care model for psychologically active drugs delivered in controlled settings.23%
- Cash15%