Fuelled by the pandemic and government spending to address mental health, investors are looking to cash in on a multibillion dollar market for legalized magic mushrooms, MDMA (ecstasy), ketamine and eventually even compounds derived from LSD.. Magic mushrooms .Delegates to the Sequire virtual investment conference in Calgary heard multiple pitches from publicly listed start-up companies specializing in legalized psychedelic drugs and therapies designed to treat a range of mental health conditions, including depression, addiction and even Alzheimer’s. .Several of those compounds are presently undergoing FDA scrutiny in the US. Psilocybin — the hallucinogenic agent in magic mushrooms — reached Stage 2 clinical trials and MDMA, which is known by its street name ‘Molly’, is expected to follow suit next year..According to Payton Nyquvest, president and CEO of Numinus Wellness, the market for mental health services is expected to grow to $538 billion by 2030. Much of that funding — upwards of 90% — is expected to come from government health services and private insurance plans. Numinus is listed on the Toronto Stock Exchange and has a market cap of about $15 million..Alberta became the latest province to legalize psychedelic assisted therapy as of January 16, through registered psychiatrists. According to Nyquvest, those are in short supply. He estimates more than 50,000 therapists will be needed in Canada, the US and the EU when — not if — ecstasy is eventually approved..In addition to operating a half dozen clinics in Canada — most in the Vancouver area after BC legalized in 2022 — Numinus is branching out into the US in Utah and Arizona. It also has clinics in Toronto and Montreal and is looking to expand into Alberta. But the company sees the most growth in training practitioners to meet the expected demand..According to Nyquvest, the three most common psychiatric disorders are suicide, opiate addiction and alcoholism. In clinical trials psilocybin has shown to be four times more effective than traditional antidepressants, while MDMA has an 80% success rate in treating conditions such as PTSD or post-traumatic stress disorder. Ketamine — or ‘Special K’ — has been shown to be an effective treatment for heroin and opiate addiction, as well as alcohol..“Psychedelics are extremely effective” at treating mental disorders, he said..In addition to allowing psychedelic therapies, Alberta’s policy also allows for clinical trials and research into developing and synthesizing new psychoactive agents. Most of that involves commercializing research at various universities around the globe. According to James Lanthier, CEO of Mindset Pharma, the large pharmaceutical companies have been reluctant to take it on..His company is advancing a series of psychedelic compounds through clinical trials that reduce the side effects — hallucinations primarily — while retaining the therapeutic benefits which in turn make them more suitable for medical use. The hallucinogenic effects of magic mushrooms, for instance, can last for eight hours which isn’t very practical in a patient setting..In any event, research into psychedelics is limited. In the US, the CIA’s illegal MK-Ultra mind control experiments have become legend in the counter culture. Canada has its own spotty history of psychedelic research. In the 1970s the British Columbia government authorized the use of LSD as a treatment for homosexuality, which was considered both a criminal and mental disorder but suspended it after the pride movement took hold..Ancient cultures have been using hallucinogens such as magic mushrooms and peyote for centuries..Considering the rush to legalize hallucinogens, why not legalize them outright? Several cities states in the US are considering just that, following the lead of Oregon and Colorado. Oakland and Washington DC passed decrees making illegality the lowest law enforcement priority. And in Canada, simple possession of virtually all drugs — including psychedelics — came into effect in British Columbia earlier this year.
