I couldn’t find a dedicated thread for this, at least not at a glance.
Globally, interest in magic mushrooms (psilocybin, etc.) seems to have piqued for medicinal use, especially for mental health issues.
On Reddit, the scene looks similar to cannabis stocks back in the day. Companies already listed on the stock exchange are seeing insane daily gains, for example, Champignon Brands (SHRM) is up +135% in five days at the time of writing. Today it’s up +25%.
Could this sector be the next ten-bagger, or are we already too late?
Psychedelics likely have a place in the future of psychiatry, and perhaps elsewhere in medicine.
However, it’s difficult to see any stock market potential in them comparable to cannabis. Hype, of course, is a different matter.
The doses of psychedelics are small, and they are not, for example, money-making machines in street trade when compared to other illicit drugs. The quantities used are small, and their use is not similar to alcohol or cannabis. While a bong-smoking sadhu, dedicated to their cause with seriousness, destroys grams of flower daily year after year, the same is not common with classic psychedelics. Due to tolerance, they simply don’t work. Unfortunately, it’s also difficult to get addicted to them, which makes making money from people’s misery more challenging.
I also became interested in these, partly due to potential hype. At the moment, however, I don’t believe the hype is sufficient for these to become tenbaggers. There is a lot of potential in medical use for mental health problems and drug addiction treatment. The reality, however, is that these companies spend insane amounts of money, but revenue might only come in perhaps 10 years. Especially in medical use, these companies have a tough job changing the world into a new kind of place, and it’s not free. The situation with cannabis was different as illegal markets had already taken over the world. Of course, there is still huge growth potential in the medical use of cannabis. Recreational use of psychedelics, on the other hand, has been legalized/decriminalized in so few places that its legal use will not grow much in the coming years. In addition, these magic mushrooms grow naturally in every corner of the world. In the Netherlands, there are a few companies that grow magic mushrooms for sale in smartshops. Even though countless tourists visit there annually in pursuit of various pleasures, my gut feeling says that this is not a billion-dollar business there either.
Edit: I corrected that they don’t grow in smartshops but for sale in them. So, these are very similar companies that have large production facilities like cultivators of button mushrooms or oyster mushrooms.
What other companies and from which exchanges would these be available? SHRM is apparently on the Canadian stock exchange and not available in Nordea’s selection
Here’s at least one new listing. Red Light Holland plans to start producing truffles in the Netherlands. The CEO is a radio host, the CCO is a comedian, and Bruce Linton, who was fired from two cannabis companies, is also involved and is also part of MindMed. This management team is certainly amusing
MindMed seems to have interesting projects underway. It’s worth looking into. There’s a lot of potential if they manage to get some of them to the finish line.
Actually, my own enthusiasm came from this article, so let’s share it here too, if it sparks discussion.
So far, I cautiously bought a small slice of Mind Medicine about a week ago @ 0.302 - now +20%
I personally believe that in the coming years, more positive research results will be obtained from psychedelics, so I’d rather be involved in some interesting companies while they are still penny stocks.
Could someone more knowledgeable shed some light on how, for example, MindMed plans to make a profit in the future?
I have strong faith in the potential of psychedelics in mental health treatment. There’s preliminary and very promising modern research evidence for this.
Over the weekend, I tried to familiarize myself more with Mind Medicine’s operations. They have specifically profiled themselves in drug development, and their aim is not to produce products for recreational use. In my opinion, their most promising research area is MC-18, which is being studied for opioid withdrawal treatment. MindMed apparently has a patent for this, and there will surely be plenty of demand if it proves to be effective.
Other research areas include LSD, MDMA, and DMT, which are the focus of 5/6 of their clinical trials. I don’t quite understand how they could eventually make money from these. Patents expired a long time ago, and the manufacturing process isn’t particularly complex. If, for example, LSD in microdoses proves to be an effective ADHD treatment in MindMed’s research, do they have exclusive rights to sell LSD at a certain dosage, etc.?
MindMed certainly has other things going on, at least an LSD inhibitor to stop its effects and setups to optimize the dose for the patient. However, these are not particularly advertised, and no more detailed information is available, so they remain somewhat hollow.
I can’t say how Canadian legislation goes regarding that, but for example, in the US there’s only one lab licensed to produce LSD for research purposes (and even then, we’re talking about only a few tens of grams per year), and they then supply it to other companies for studies. Even the non-psychotropic version of LSD, which actually works for cluster headaches, is not allowed to be manufactured there. Based on that, I’d guess they aren’t allowed to manufacture LSD in Canada either.
MindMed’s clinical trials, as I understand it, are being conducted in Switzerland, where legislation is more open-minded in this regard. From a Forbes article:
“The studies are being conducted by professor Dr. Matthias Liechti, one of the world’s leaders in psychedelics pharmacology and clinical research at University Hospital Basel in Switzerland. The deal gives MindMed exclusive, worldwide rights to data, compounds, and patent rights associated with the research on LSD and other compounds.”
So, is it true that if MindMed has valid research evidence, they can be granted special rights to manufacture and sell a specific molecule for a specific purpose? And, is there a risk that the substance will be generally approved for medical use, which would threaten MindMed’s potential competitive advantage?
Ok, so it’s still possible to get patents for good old psychedelics:
“Patent examination is carried out according to the same standards applied to other technologies. The claims must be new, useful and not obvious and the application must teach one of ordinary skill in the art how to make and use the invention―nothing more and nothing less. Examples of psychedelics that have been the subject of patenting activity include”
Does anyone know why MMEDF has almost doubled in two days? I can’t find any news, except that states are gradually legalizing these psychedelic therapies.
Switzerland and the Netherlands gave permission to start phase 3 trials for LSD microdosing for ADHD, but that was several days ago. It’s probably just that the buzz started on Reddit. I wonder if it will spread among Robinhood investors in the coming days? Wouldn’t mind at all, I have a bigger stake. Luckily I can’t sell on a whim, as it requires a phone broker.
Nordnet and phone broker. Nowadays you also have to pass a test before you get a buying permit. Other companies in the field haven’t really interested me, it’s hard to say anything about them. I would have indeed fiddled around and maybe been left on the sidelines, but it’s difficult over the phone as the broker service closes at 6:30 PM. I thought about turning to the sell side around nine. The cannabis hype is a bit too fresh in memory, even though I coincidentally jumped out at the right spot. Maybe it’s precisely because of the cannabis hype that this doesn’t widely generate interest here. It’s not far-fetched that you might get your fingers burned. But let’s enjoy the ride as long as it lasts.
