For the psychedelics space, the year 2021 has been marked by critical developments alongside a better understanding of the opportunity as a whole.
While the psychedelics investment market is still very young, distinction among players is starting to become more pronounced. As such, more and more experts in the market are appearing to share their insights and knowledge on what makes the sector tick.
The Investing News Network (INN) had the chance to catch up with James Halifax, the host and face of the Psychedelic Investor YouTube channel, about his takeaways on the psychedelics market in 2021 so far, and why he is encouraged by the current progress of the top players.
“We also see on the science side of things these companies making big strides, and kind of the first big steps into bringing their medicines towards commercialization,” Halifax said.
There are a variety of avenues to get involved in psychedelics, but the primary method for companies is by developing medicines with psychedelics-based compounds using a standardized and rigorous review process — for example, through a regulator like the US Food and Drug Administration.
The expert admitted there’s been volatility in the space, a trend investors have come to understand as part of the industry, and added that company success is dependent on trial results.
“If they come back negative, basically all these companies are going to $0,” said Halifax. “The entire valuation on them right now is based on the idea these (trials) will be successful.”
When asked about the challenges of finding key differences among players in this industry, Halifax admitted the rush of companies into the sector has made research more complex.
“It can be difficult trying to find a starting point, trying to figure out which companies are real and which companies aren’t real,” he told INN in the conversation.
The expert pointed to financials as a clear indicator of a company’s intentions and actual potential to realize its plans. Because when it comes to the drug development process, taking a trial drug all the way through to approval is a costly endeavor — one that is in the US$100 million range, according to Halifax.
Watch the video above to hear all the takeaways from the Psychedelic Investor. You can also click here for more video interviews from INN.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Red Light Holland and Psyched Wellness are clients of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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