Psychedelics: Significant Investor Interest Despite the Pandemic
February 16th, 2021
App, Exclusive, Psychedelics, Top Story
The COVID-19 pandemic may be ravaging large swaths of the economy, but the stock market has consistently hit new record highs. After spending several years under-the-radar, the psychedelics industry is experiencing a renaissance driven by a combination of FDA-driven catalysts and soaring investor interest in a new class of potential blockbuster therapeutics.
Let’s take a look at some of these trends and why investors should keep an eye on CB Therapeutics Inc. as an opportunity in the space.
Smart Money Interest
The psychedelics industry has already attracted billions of dollars’ worth of capital from both Silicon Valley and Wall Street over the past couple of years.
ATAI Life Sciences, the 900-pound gorilla in the psychedelics industry, recently closed a $125 million Series C financing round led by Apeiron Investment Group, billionaire Silicon Valley investor Peter Thiel and Catalio Capital Management. The record-breaking sum will be used to fund preclinical and clinical development of the company’s mental health program.
While ATAI Life Sciences had the largest capital raise, smaller companies have seen unprecedented levels of investor interest. Field Trip Health raised about $15 million, Seelos Therapeutics raised $12 million and Numinus Wellness raised approximately $10 million all at the end of 2020.
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Wave of IPOs & Mergers
Many psychedelic companies have already gone public on the NASDAQ, CSE, NEO, and other exchanges, providing retail investors with access to opportunities.
COMPASS Pathways Inc. (NASDAQ: CMPS) has been the largest psychedelic initial public offering to date, reaching a market capitalization of nearly $2 billion, as of December 28. Shortly after, Cybin Corp. (NEO: CYBN) raised C$45 million in its debut on Canada’s NEO Exchange, marking the largest go-public psychedelic capital raise in Canada.
There are more than 25 publicly traded psychedelic companies, as of December 28, primarily concentrated on the Canadian Securities Exchange (CSE). These companies have gone public through a combination of initial public offerings (IPOs) and reverse mergers with existing companies that were listed without meaningful business operations.
Solving the Next Problem
CB Therapeutics is a promising up-and-coming opportunity that bridges the gap between psychedelic supply and demand. With its proprietary production platform, the company aims to produce a wide range of psychedelic compounds at scale in order to supply researchers with low-cost compounds, and eventually, a wider commercial market.
CB Therapeutics Platform – Source: CB Therapeutics Inc.
While most bioengineering and downstream technologies struggle with small amounts of dirty samples, the company has refined its process to deliver pure cannabinoids, tryptamines (psychedelics) and their analogs. The company is rapidly developing a lead in bioproduction and the early filing of IP covering these molecules and production methods.
The psychedelics industry has seen tremendous investor interest over the past few years driven by FDA support for clinical research and the potential for new blockbuster therapeutics.
CB Therapeutics is a promising up-and-coming opportunity that bridges the gap between psychedelic supply and demand. Given the strong interest in the sector, investors may want to keep a close eye on the stock as it gears up for a public listing.
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