Will cannabis entrepreneurs switch to psychedelics?

By Andrew Ward

The psychedelics room is heating up, and the key players have noticed.

The market is being driven by a growing number of decriminalization movements in the United States as well as an increasing number of market participants, including names like COMPASS Pathways PLC (NASDAQ: CMPS), Field Trip Health Ltd (NASDAQ: FTRP), Cybin (NYSE: CYBN), Enveric Biosciences Inc (NASDAQ: ENVB), Hollister Life Sciences (OTC: HSTRF) and Revive Therapeutics (OTC: RVVTF).

Photo by krencin via Pixabay

Cannabis companies are entering the market, as are well-known leaders in the marijuana space. Notable names are former Canopy Growth Corp. (NYSE: CGC) CEO Bruce Linton, now a director of Toronto Spiritual Medicine (MindMed) Inc (NASDAQ: MNMD) and Chairman of the Advisory Board for Red light Holland (OTC: TRUFF), a brand focused on truffles.

In June 2020, Aurora cannabis (NYSE: ACB) Co-Founder Terry Booth has left his cannabis company. Booth drew attention to psychedelics and invested in Red Light Holland. Booth also joined the board of directors of Psyched Wellness Corp. in May. at.

What is the appeal of psychedelics?

Those who spoke to Benzinga for this article believe the interest in the emerging field stems from both medical implications and frustrations with cannabis regulation.

Linton told Benzinga his interest in the market was twofold.

First, the decision was driven by the belief that Linton could achieve more significant medicinal effects with psychedelic substances.

RELATED: The Progressive Impact Psychedelics and Cannabis are Having in the Medical Community

The other reason was that “cannabis has had really stupid rules and guidelines for a long time,” said Linton, who prefers proper regulation to decriminalization.

Ronan Levy, Executive Chairman of the psychedelics therapy company Field Trip, explained the regulatory appeal of cannabis and psychedelics.

“Entrepreneurs in the cannabis industry must have an even greater appetite for uncertainty given the regulatory, reputational and legal risks inherent in cannabis,” said Levy.

He went into why psychedelics have a clearer legal understanding than cannabis.

“The legal environment for psychedelics is much more transparent than cannabis, with psychedelics being driven by scientific and academic research seeking regulatory approvals rather than grassroots policy efforts as in the case of cannabis,” Levy said, noting how the situation is a simpler market enables participation.

Photo by Nathaniel Paluga, Wikimedia user Drpaluga

Although Levy did not downplay the marijuana results, he stated that psychedelics research is more convincing because of a larger number of laboratory studies now.

RELATED: Investors Jump Into Psychedelics After Learning Hard Lessons In The Cannabis Industry

The chairman also discussed the medical implications, noting that cannabis entrepreneurs were likely inspired by the changes marijuana and psychedelics had on patients.

“It seems natural for cannabis entrepreneurs to leave the stigma of psychedelics behind and see the potential for real, meaningful effects and change,” Levy said.

What is to be considered

Operators and business leaders agree that psychedelics demographics could match or surpass the broad range of cannabis, and said the segment is just beginning to take shape.

“I don’t think there is a specific demographic that can benefit from it, but rather specific ailments where we know these substances can be effective,” said Josh Bartch, President and CEO of Mydecine Innovations Group Inc (OTC: MYCOF).

Barch, who said his company views consumers as patients, said those receiving treatment could include both those with terminal diseases and those with PTSD.

With such a wide range of potential patients, psychedelic operators believe the market is picking up and there is still much to learn and more to come.

“While there is a lot of excitement today, the game hasn’t even started,” said Field Trip’s Levy.

Noting that the regulations are still largely uncertain, as with cannabis, Levy advised, “Make sure you play the long game on every business opportunity you pursue in psychedelics.”

Mydecine’s Bartsch noted that a wide range of treatments could create confusion among newcomers. Offering a solution, the President and CEO said, “Make sure you focus on what you ultimately want to achieve.”

Bartch added, “Rate the other players in the room who are also trying to achieve this or similar goals and make sure your team dramatically outperforms them.”

This article originally appeared on Benzinga and was republished with permission.