Can Canada’s psychedelic drug developers shake off the sector’s bad trip?

In a mind-bending twist, two Canadian companies, Cybin Inc. and Mind Medicine (MindMed) Inc., are diving into the psychedelic world with phase 3 trials to tackle mental health issues. Cybin got the FDA’s nod to test a synthetic psilocybin variant for major depressive disorder, while MindMed is planning an anxiety intervention with some good old LSD, man.

The road to psychedelic salvation isn’t all rainbows and groovy vibes, though. The sector’s faced some gnarly setbacks, like Lykos Pharmaceuticals’ MDMA dreams getting crushed by the FDA, and Compass Pathways’ psilocybin results hitting a roadblock. But hey, Cybin’s FDA approval is like a thumbs-up from the universe, bringing hope amidst the chaos.

Analysts are cautiously optimistic, like cats watching a laser pointer, hopeful that responsibly conducted trials could lead to a breakthrough. The psychedelic buzz has been growing since the 2000s, after being shunned since the 1970s like a disco ball at a punk concert. The 2010s saw the FDA bestowing “breakthrough” status on psychedelic drugs, recognizing their potential to turn frowns upside down.

Cybin’s recent results have shown promise, with many depression patients achieving remission, making them the rock stars of the clinical trial world. Meanwhile, Johnson & Johnson’s Spravato, a ketamine-based treatment, is making it rain in sales, proving that psychedelics can be big business.

Despite the groovy potential, there are still clouds in this kaleidoscope sky. Commercial viability, patent protection, and high administration costs are like a trio of buzzkills at the psychedelic party. But with millions suffering from mental health conditions

Reference: https://www.theglobeandmail.com/business/article-can-canadas-psychedelic-drug-developers-shake-off-the-sectors-bad-trip/

Published Date: 2024-11-13