Investing in Psilocybin and Magic Mushrooms
Oregon became the first state in the United States to legalize psilocybin, the main element in psychedelic or magic mushrooms, in November 2020. Psychedelics are becoming more mainstream, similar to cannabis, and investors are measuring up what might be a huge long-term development opportunity. According to one market research agency, the market for psychedelic medications would reach $10.75 billion by 2027.
Some of the classic hallucinogens used during micro-dosing include lysergic acid diethylamide (LSD) or psilocybin mushrooms, or magic mushroom Spores. Various media reports show that micro-dosing has gained much popularity over the years.
There are minimal reports and evidence-based literature on some of the side effects of micro-dosing psilocybin mushrooms. However, a few researchers have tried to discuss the benefits. Below is everything you need to know about the benefits of micro-dosing psilocybin mushrooms.
Unfortunately, cannabis stock investors are aware that the embryonic industry has faced numerous legal difficulties and gone through multiple boom and bust cycles, necessitating a high risk tolerance on the part of psychedelics investors.
In this guide, we’ll break down the different ways you can invest in psilocybin– from psilocybin stocks to companies and everything in between. Investing in psychedelics could quickly become the next big thing.
Everything You Need to Know About Investing in Psilocybin
What is Psilocybin?
For those who aren’t well-seasoned in magic mushroom culture, let’s break down what it actually is.
Psilocybin and psilocin are chemical compounds found in hallucinogenic mushrooms found in Mexico, Central America, and the United States. The structure of these molecules is comparable to that of lysergic acid diethylamide (LSD). The compounds psilocybin or psilocin are found in over 180 types of mushrooms. Hallucinogenic mushrooms, including peyote, have been utilized in native rites for generations. Both psilocybin and psilocin may be synthesized in the laboratory.
Psilocybin can be found in dried or fresh mushrooms, or as a powder in capsules, and is usually taken orally. It’s also brewed into tea on occasion. The effects normally take 1 to 2 hours to begin and last around 6 hours. Typical doses vary from 10 to 50 mg. However, because psilocybin concentrations vary greatly depending on the genus, strength, and condition of the mushrooms, dosages may vary.
For thousands of years, indigenous civilizations in Mexico and Central America have used mushrooms in sacred rites. Mild euphoria, tingling bodily sensations, heightened sensitivity to music, and visual stimuli are all common recreational effects. In comparison to other, more violent chemical hallucinogens like Ketamine and LSD, they are considered by many to be a more benign or natural hallucinogen. Similarly, medical research on the possible therapeutic effects of microdosing psilocybin for depression, brain injury, CTE, anxiety, and other diseases have been conducted.
It’s worth noting that in the United States, the consumption and cultivation of magic mushrooms are illegal. There have been significant changes in its medical use and more studies are supporting psilocybin as a therapeutic medication for everything from brain injuries to depression. However, as it currently stands, it is not legal to consume or “trip” on magic mushrooms that contain psilocybin.
Are There Long-Term Risks When Using Psilocybin?
Fearful thoughts, sentiments, and fears may accompany a “bad trip.” Also, without having taken the drug, psilocybin can trigger flashbacks, in which the person abruptly relives particular portions of the event. Flashbacks can happen anywhere from a few days to over a year after taking psilocybin.
Furthermore, even one usage of psilocybin can lead to major psychological problems. The exact cause of these side effects is unknown. Drug-induced psychosis and hallucinogen-persisted perceptual disorder are two of these conditions (HPPD). With HPPD, the person suffers flashbacks in which some of the hallucinatory distortions or visions that occurred while under the influence of the substance come back to the surface against their will. After ceasing psilocybin use, the person may have the same flashback for years.
While the risks may seem worrisome, much of the research and focus on psilocybin from the companies we will mention in this guide come from a purely scientific and medical standpoint. Psilocybin is also not considered an addictive drug.
Why Are Investors Looking Towards Psilocybin?
Psychedelic health care has a lot of potential, even though it’s still in its early phases. For example, when ATAI Life Sciences, a biopharmaceutical firm that produces psychedelic drugs, debuted on the Nasdaq recently, its stock soared by 40% on the first day of trading. As a result, the company now has a market capitalization of $2.6 billion.
For three main reasons, investors are focusing their attention, and more importantly their cash, on this rapidly growing industry: the global need for effective mental health therapies, shifting legislation and regulation, and widespread public acceptance.
First, psychedelic health care will become a vital tool in the treatment of deteriorating mental health concerns in the post-COVID future. During lockdown, more than two-thirds of adults with mental health issues said their mental health deteriorated. We still don’t know what the long-term consequences will be or how the pandemic has affected the broader public.
As a result, pharmaceutical corporations are planning to invest heavily in new medical therapies to combat the problem. Governments are also encouraged to respond quickly to defend their populations’ well-being.
Psilocybin is a potentially safe and effective alternative to antidepressants, which are frequently ineffective in treating mental diseases. Psilocybin was found to be as effective as the leading SSRI in the first straight head-to-head trial comparing it to standard antidepressants, with many reduced rates of relapse post-treatment. With this in mind, it’ll only be a matter of time until major pharmaceutical corporations start to include psychedelics in their product line.
The policy around the usage of psychedelics is constantly changing. As treatments are put out on a much greater scale, the rescheduling and legalization of these compounds is likely to become more prevalent, making them an appealing alternative for investors.
Legislative and regulatory changes will be critical in hastening the adoption of these effective medicines while also increasing the value for the corporations that benefit. The firm saw a 71% gain in its market worth on its first day of trading when the FDA certified a psilocybin-based treatment for depression developed by COMPASS Pathways as a “breakthrough therapeutic.”
With towns like Oakland and Santa Cruz in California decriminalizing psilocybin, momentum is building. In Canada, psilocybin is approved for use in cancer palliative care as an end-of-life treatment.
The public’s attitude toward psychedelic health care is positive, and demand for these treatments will grow as the benefits become more widely recognized. According to one recent study, 59% of those polled stated they would explore psilocybin-assisted therapy for themselves if they had a problem for which solid proof existed. Antidepressants and talk therapy were seen with skepticism by respondents when it came to treating depression.
We can look to the development and growth of the cannabis industry as a preview of what is to come as psychedelics begin to break into the mainstream. As legislation, public opinion, and early investment all trend in the right way, it appears like lightning may strike again for those daring investors who are ready to put their money into a growing area.
Top Psilocybin and General Psychedelic Stocks to Invest In
If you want to start investing in psilocybin stocks, here are some major companies that are making waves in the psychedelic industry. All psychedelic equities are basically healthcare companies that use hallucinogens to treat ailments. Because the industry is still young, the majority of the companies have low market capitalizations. Many of them, on the other hand, are fast expanding.
Numinus Wellness (NUMIF)
Since 1964, Numinus Wellness has been in operation. Numinus Biosciences, a division of the company, provides services such as cannabis testing and produces hallucinogenic pharmaceuticals. Numinus Health, which bought Mindspace Wellbeing in February 2021, runs treatment clinics where therapists aid individuals with mental health and substance abuse problems. In 2022, the business aims to start a phase 1 clinical trial studying NBIO-01, a naturally produced psilocybin extract. It also plans to start a clinical trial of methylenedioxymethamphetamine (MDMA) as a PTSD treatment. The Multidisciplinary Association for Psychedelic Studies will fund the research (MAPS).
Mind Medicine Inc. (MNMD)
Mind Medicine is a biotechnology firm that is testing several drug candidates, including psilocybin, LSD, DMT, mescaline, and the ibogaine derivative 18-MC. The FDA approved MindMed’s investigational new drug application in January, authorizing Phase 2b testing of MM-120, a pharmacologically optimized version of LSD, in the treatment of general anxiety disorder. Psychedelics are also being tested in the treatment of adult attention deficit hyperactivity disorder, opiate addiction, and acute and chronic pain, according to the business. Depression, ADHD, and addiction are huge markets with a lot of long-term promise for investors who are ready to take some risks.
Compass Pathways (CMPS)
Right now, this is perhaps one of the most well-known names in psychedelic research. The Compass Trust Limited, which George Goldsmith and Ekaterina Malievskaia formed in 2015 to assist research and development of psilocybin therapy for people with end-of-life anxiety, is where Compass Pathways got its start. Compass Pathways became a for-profit firm the next year as a result of their efforts. In September 2020, the company went public on the Nasdaq stock exchange. With its phase 2 study of COMP360 in treatment-resistant depression, the pharmaceutical undertook the largest clinical trial of a psilocybin medication in history. In 2022, it intends to move the investigational therapy into late-stage testing. COMP360 is the only pipeline contender for Compass Pathways.
Cybin was founded in 2019 and went public in 2020 through a reverse purchase of Clarmin Explorations on Canada’s NEO Exchange. In August 2021, its shares were listed on the New York Stock Exchange (NYSE). In 2022, the business expects to enter a phase 1/2 clinical investigation for its main candidate, CYB001, which is being developed for the treatment of major depressive disorder. CYB001 and other psilocybin medicines have been studied in over 140 preclinical investigations by Cybin so far.
Atai Life Sciences (ATAI)
Atai has nine programs in its pipeline, four of which are in clinical trials. The company’s flagship candidate, RL-007, is being tested in a phase 2 clinical trial as a possible schizophrenia treatment. The first major cooperation between a psychedelic-focused biotech and a big pharma business was formed when Atai’s Perception Neuroscience unit linked up with Japanese drugmaker Otsuka to research R-ketamine in the treatment of depression. In addition, Atai is a major shareholder in Compass Pathways, another psychedelic pharmaceutical company on this list.
GH Research PLC (GHRS)
For treatment-resistant depression, GH Research is developing and testing three innovative and proprietary 5-MeO-DMT treatments. The hallucinogenic 5-MeO-DMT, often known as dimethyltryptamine, is a close relative of DMT. It’s found in a wide range of plants and is secreted by the Sonoran Desert toad’s glands. GH stated in December that during Phase 2 clinical trials, a surprising seven out of a total of eight participants treated with its flagship product candidate GH001, which administers 5-MeO-DMT by inhalation, were in remission after seven days of therapy. The company’s GH002 product candidate is attempting to administer 5-MeO-DMT through injection, while GH003 is attempting to administer the drug intranasally.
Field Trip Health Ltd. (FTRP)
Another company, Field Trip Health, is working on a synthetic type of psilocybin molecule known as FT-104. FT-104, according to Field Trip, has a similar potency as psilocybin but produces a shorter time of psychoactivity, making it potentially more suitable for use in treating patients. Field Trip Health inaugurated its Field Trip Natural Products Limited Psychedelic Fungi Research and Development Laboratory in Mona, Jamaica, last year. The new facility is the first legal research center dedicated solely to psilocybin and other plant-based psychedelics in the world. Field Trip was given a Nasdaq listing in July 2021 and began trading in the United States under the symbol FTRP.
If you want to collect or study mushroom spores via microscope, don’t forget to stop by Shaman Mushroom Spores shop to take a look at our current product offering. Investing in magic mushrooms is great, but you can definitely get a better feel for what you’re going to invest in by studying magic mushroom spores.