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The global coronavirus pandemic has created a huge spike in mental health conditions. This summer, the Centers for Disease Control reported 11% of American adults considered suicide, while a whopping 40% said they were struggling with mental health or substance abuse.
Companies like MindMed (MMEDF) are creating psychedelic drugs to help people battle these mental health issues. The New York-based biotech startup is conducting clinical trials of drugs including LSD and psilocybin, to treat anxiety, depression and opioid addiction.
“I think that psychedelic medicines offer a new paradigm in mental health,” MindMed’s co-founder and co-CEO JR Rahn told Yahoo Finance Live. “Traditional medicines that are treating things like depression, addiction, and anxiety really are seeking to numb and mask the issues that surround these illnesses. So, things like Xanax, while they might make you feel better, they can also be highly addictive and are not dealing with the underlying problem.”
Rahn said the stigma that has long plagued psychedelics is showing signs of fading as more people become educated about the issues. This year, Oregon became the first state to legalize psilocybin, an ingredient in hallucinogenic mushrooms, for mental-health treatment.
“We think this is really a voice and the will of the people that we need innovative solutions to mental health, but we believe, ultimately, these become mainstream medicines only with FDA approval,” he said.
Unlike the cannabis industry, Rahn said psychedelic biotech firms are not seeking state-by-state approvals for their pipeline of drugs. “Companies that are taking this biotech approach are really looking at proving out the safety and efficacy of these medicines at the FDA.”
MindMed recently announced a commitment to provide $5 million over five years for a psychedelic medicine research training program in collaboration with NYU Langone Health and NYU Grossman School of Medicine.
“What we're interested in with NYU is to start training the next generation of psychiatrists on how we can start implementing psychedelic medicines into practices across America in order to, eventually, scale these medicines,” Rahn said. “Once and if they are approved by the FDA, we're going to need a network of psychiatrists and therapists that are able to administer them to patients.”
The ‘new cannabis’
MindMed is among the first psychedelic drug companies to be listed on a public exchange. It currently trades on Canada NEO Exchange as well as the over-the-counter market in the U.S. and has applied for an uplisting on the Nasdaq.