Sign in to follow this  
Followers 0
Lyubov

Investing in Psychedelic assisted therapy treatment

10 posts in this topic

Has any one here invested in this sector ?  I think it is a good place to possibly invest in and see what it grows to in 10-20 years. Not sure where to get started and how to. Have any of you found ways to buy stocks or investment in early companies forming this new industry?

Share this post


Link to post
Share on other sites

At this point the entire space is probably just people helping people one on one so there's no company or anything to invest in.

Psychedelic assisted therapy is the future though so there's a ton of money to made here.

Do you want to get into it as a job, or are you just talking strictly investing in companies as some sort of angel investor?

Psychs being illegal and the potential for people to go crazy and blame YOU is a huge problem for anyone in the space so maybe you could address this in someway to make money

 

Share this post


Link to post
Share on other sites

@Raptorsin7 I did a bit of research and found out there are some Canadian, US and UK companies which are conducting research on Mushrooms, LSD, MDMA and other substances. They are backed by some pretty big cash and venture capitalists and several of them do have licenses from the FDA to conduct trials and tests with these substances and develop them for therapeutic use. It's still all very much in its infancy but I will continue to do more research. Some of them do offer publicly traded stocks. I'm looking to invest and this is truly a long erm investment. I don't think this industry will really take off for another ten years or so. I'm trying to get in on it really early while I have a good amount of savings and some money to invest. 

Share this post


Link to post
Share on other sites

 

Edited by Lyubov

Share this post


Link to post
Share on other sites

@Lyubov You don't know if these companies are going to be the one's that make it though. Even though it's almost guaranteed this field is going to be huge at some point in the future, it's going to be hard to pick the winners so early.

Share this post


Link to post
Share on other sites

That is true but that is the case with any early venture. Investing in it thus requires keeping a sharp and consistent ear to the ground as it develops, holistic research and weighted choices in how to financially distribute funds across the sector.

Edited by Lyubov

Share this post


Link to post
Share on other sites

The thing is with psychedelic is they are not addictive, so the potential for them to make big returns isn't going to be that high. In general with therapy and etc it doesn't seem to be a super "hot" investment, but there is a good amount of money in the health care sector. 

The other thing is regulation can easily stifle large businesses. I have ran a business that got destroyed by regulation and even ones that were worth millions got wiped out with me. The high amount of speculation in this vs the potential return seems to not be worth it in my opinion. 

Even if you could just go to a store and buy some most of society is not going to be running to pick up some. The best selling stuff is the lowest consciousness stuff. 

You have to consider if insurance companies would even pay for this kind of treatment as well. Most people can't invest into a $5 book, so they are probably not going to invest into hundreds of dollars for therapy, when the drugs are much cheaper.

The best way to find a good investment is to know a lot about the industry or investment itself. You can just stumble onto deals that can return massive margins if you know what you are looking at. I would easily be a millionaire if I spent more time while I was younger studying what I was investing into. Can't say I have done bad at all though just from what I have learned. A few good investing books would make it easy. The few investing books I have read and applied have done really well for me so far. 

I think with the kind of time horizon you have you could find a lot better established companies that could produce great returns. Picking small cap stocks in a wildly unknown industry is super risky. You can even get good returns by just investing in index funds. 

Share this post


Link to post
Share on other sites
17 hours ago, Average Investor said:

The thing is with psychedelic is they are not addictive, so the potential for them to make big returns isn't going to be that high. In general with therapy and etc it doesn't seem to be a super "hot" investment, but there is a good amount of money in the health care sector. 

The other thing is regulation can easily stifle large businesses. I have ran a business that got destroyed by regulation and even ones that were worth millions got wiped out with me. The high amount of speculation in this vs the potential return seems to not be worth it in my opinion. 

Even if you could just go to a store and buy some most of society is not going to be running to pick up some. The best selling stuff is the lowest consciousness stuff. 

You have to consider if insurance companies would even pay for this kind of treatment as well. Most people can't invest into a $5 book, so they are probably not going to invest into hundreds of dollars for therapy, when the drugs are much cheaper.

The best way to find a good investment is to know a lot about the industry or investment itself. You can just stumble onto deals that can return massive margins if you know what you are looking at. I would easily be a millionaire if I spent more time while I was younger studying what I was investing into. Can't say I have done bad at all though just from what I have learned. A few good investing books would make it easy. The few investing books I have read and applied have done really well for me so far. 

I think with the kind of time horizon you have you could find a lot better established companies that could produce great returns. Picking small cap stocks in a wildly unknown industry is super risky. You can even get good returns by just investing in index funds. 

Yes I'm aware that conventional investment in index funds and bonds would bring safe returns but that is not what this thread is about. I'm not talking about saving for retirement or building your standard brokerage account here. This is a speculative venture capital endeavor in what is going to eventually be a standard mental health treatment for PTSD, serious addiction and several mental health issues. I actually disagree with some of what you are saying because you seem to miss the point about what is being invested in here.

These medicines are part of the future of the mental health industry. How that translates towards profit isn't quite clear yet but there is money to be made here. Psychedelics won't be administered like usual pharmaceuticals on a daily basis so you are right that a continued return won't be based off of patients taking psychedelics daily. That misses the point of what is being invested in here though. I'm well aware of this. What is being developed by these companies is a facilitated procedure of administering psychedelics in a therapeutic setting, usually a limited number of times, and follow up therapy afterwards. Similar to a torn muscle surgery that then requires physical therapy afterwards. How much it will cost to undergo this treatment will likely be fairly expensive and will require centers set up specifically trained to do such procedures. You're missing the point if you see investing in psychedelics as faulty because it isn't based around a patented medicinal formula developed by a pharmaceutical company that expects to see regular returns on prescriptions filled. That is not what is primarily being invested in here. What's being invested in here are companies that are developing approved ways of facilitating psychedelics in a therapeutic setting and the follow up therapy afterwards. 

In terms of regulation I do agree. Few companies have FDA approval to run trials and develop therapeutic procedures with backing data. This is just a matter of time. There is some big money, big names and universities backing current trials on administering psychedelics under therapeutic settings. It's simply a matter of time for enough data to be compiled and approved procedures/treatment processes to be developed before regulations are adjusted for these procedures to be held at centers set up properly to do them. We already have one state that decriminalized magic mushrooms. Before more of this happens and these substances find their way into developed/facilitated treatment procedures there will have to be more backing from the mental health industry (by that I mean the academics, researchers, universities and academic journals).  The mental health industry and its investors will have to get on board to lobby for these government changes which is the next step from where we are now. The mental health industry are currently a buzz with talks and papers being published in their journals about MDMA therapy and psilocybin therapy. MDMA therapy is not only just being trialed in the US but also in the EU and Israel. I occasionally take a look at clinical discourse and academic journals and it is a hot topic being discussed. 

You do make a good point in regards to insurance companies. As of now insurance companies in the US don't often cover mental health treatment comprehensively so this may be a big barrier from the general public having access to these treatments. Also since it is new and perhaps viewed as unconventional when it starts to be administered in centers across the country it may not be accounted for in many people's insurance plans. If it is shown to be incredibly effective though and save money compared to a patient being put on a pharmaceutical indefinitely then it may become more widely covered by insurance plans if it saves them money. That is very much the point of these therapies. To treat the root so long term treatment is not required. How that translates financially though compared to an indefinite pharmaceutical prescription is currently not clear. These treatments are likely going to be taken by the well to do during their first several years on the market like most expensive medical breakthroughs. 

Those who have done Psychedelics and are familiar with what is being developed here know it isn't a matter of if but rather when. When will Psychedelic assisted therapy become conventional, government approved, and have treatment centers set up across countries? I really can't speak on that specifically as it is currently unknown. 

Edited by Lyubov

Share this post


Link to post
Share on other sites
6 hours ago, Lyubov said:

Yes I'm aware that conventional investment in index funds and bonds would bring safe returns but that is not what this thread is about. I'm not talking about saving for retirement or building your standard brokerage account here. This is a speculative venture capital endeavor in what is going to eventually be a standard mental health treatment for PTSD, serious addiction and several mental health issues. I actually disagree with some of what you are saying because you seem to miss the point about what is being invested in here.

 

On 12/31/2020 at 0:24 PM, Lyubov said:

Have any of you found ways to buy stocks or investment in early companies forming this new industry?

^

 

To me it sounds like you are more into the idea of what this stuff can do versus how much money it can actually make. I would love to get some sort of treatment like this and I actually do that for myself. I just can't see it making that much money.

If you have tens of thousands of dollars laying around to fund start up companies, then you are most likely not going to find the advice you need here. 

Share this post


Link to post
Share on other sites
5 hours ago, Average Investor said:

 

^

 

To me it sounds like you are more into the idea of what this stuff can do versus how much money it can actually make. I would love to get some sort of treatment like this and I actually do that for myself. I just can't see it making that much money.

If you have tens of thousands of dollars laying around to fund start up companies, then you are most likely not going to find the advice you need here. 

Financially I have a large amount of savings so I can treat this as a sort of project. I was just wondering if anyone here had already gotten in on it or was dabbling in this field. I'm not sure how much money it potentially will make. It really is still very much far away from being offered on the market. I could see a a number of centers set up in the future offering these treatments but that is still a ways off. 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0