Why is the Psychedelic Sector Attracting the Attention of Investors?


The popularity of microdosing in Canada has been growing for some time.  Across the country, more people than ever before are experimenting with psychedelics as an alternative to conventional pharmaceuticals.  

Coupled with the huge sums of money being pumped into studies exploring the potential benefits of psychedelics, it’s hardly surprising the whole thing is also attracting the attention of investors.

It’s been a long time coming, but Canada seems well on its way to becoming the first major western nation to embrace psychedelics for their renowned therapeutic properties.  

“It’s important to remember that we have evidence pertaining to decades of human consumption have psychedelics to go on, along with the efficacy of countless different psychedelics,” commented a spokesperson from Microcybin Canada

“This is all likely to boost the speed of the clinical trials taking place right now, while at the same time making them so much less expensive to conduct.”

But what is it about psychedelics in particular that holds such widespread appeal for potential investors? 

While are more investors than ever before setting their sights on the psychedelics sector as the one to watch over the coming years?

Extensive Evidence and Ongoing Research

While psychedelics may have only recently found their way onto the radars of investors, it is a sector that is already backed by generations of extensive research. 

Trials into the potential benefits of psychedelics have been conducted for decades, pointing in many instances for products with huge therapeutic potential.

Over the last 10 years or so in particular, the most extensive clinical trials to date have been conducted across Canada and the United States alike. 

As the world continues to search for more effective treatments for a long list of mental health disorders, psychedelics are being researched as a potential treatment for PTSD, anxiety, depression, bipolar disorder and other common conditions.

While all this is going on, countless companies spanning the United States and Canada are fighting ferociously to get in at ground level and claim the biggest possible piece of the pie in advance. 

Should the widespread international legalization of prescription psychedelics go ahead - which many believe it will soon enough - it will create an incredibly lucrative pharmaceuticals sub-sector for investors to take advantage of.

“There is a smaller subset of investing verticals in the psychedelic space as it is more of an intellectual property race to develop drugs,” says Michael Sobeck, managing partner at Ambria Capital, a San Juan, Puerto Rico-based asset manager.

Regulatory Obstacles 

Legalization of prescription psychedelics has so far faced the same hurdles as those the medical marijuana sector encountered during its inception. 

For the time being, psychedelics remain illegal across much of the world, raising questions as to their safety and viability as an investment opportunity.

Slowly but surely, however, attitudes among investors are changing. Attitudes towards therapeutic psychedelics have shifted - both among the medical community and with regulators. 

Prescription psychedelics are already legal across much of Canada, and more countries are expected to follow suit soon enough.

Microcybin Canada – a leading supplier of premium prescription psilocybin – believes that retail investors are looking at a golden opportunity to take full advantage of something that could turn out to be huge. 

Prescription drugs are incredibly difficult to develop and introduce legally to a market. It is a process that costs billions of dollars and takes at least 10 years, during which those investing in the product are forced to shoulder the costs.

With therapeutic psychedelics, generations of research conducted into their effects and benefits is already accelerating the process. Something that could help the sector negotiate the usual regulatory obstacles quicker and with fewer complications.

A Therapeutic Product Bursting with Potential

Importantly, most of those who have expressed an interest in the prescription therapeutics sector have distanced themselves from the prospect of all-out legalization. 

Few (if any) major players have their sights set on commercial sales of psychedelics in the near or distant future.

“We’re not planning on selling micro doses out of a dispensary,” says JR Rahn, the founder and chief executive of MindMed.

“These are going to be picked up from your local pharmacy. They’re going to be prescribed by a doctor. We’re not trying to build cannabis 2.0.”

Should the legalization of prescription psychedelics go ahead, it could result in the creation of a market with a total combined value of more than $100 billion per year. 

Though in order for this to happen, efforts will need to be stepped up to educate the public in general as to the potential uses and effects of psychedelics.

“We don’t want to see psychedelic culture or history become sterilized the way that cannabis has,” says Shelby Hartman, co-founder of a psychedelics-based publication in New York.

“We don’t think there’s a right way to do psychedelics; we believe doing them at a festival can be deeply therapeutic, and doing them in a clinical trial with researchers can, too,”

“We do believe that more people should learn about psychedelics and their therapeutic potential—and that accessible, entertaining content will help with that.”


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