Psychedelics: FDI’s next trip?

The past few months has seen a flurry of activity to do with psychedelics in North America: US cities and states have legalised psilocybin, and biotech psychedelic-assisted therapy companies have started to raise institutional capital and establish R&D centres overseas. 

In November, the state of Oregon decriminalised the possession of all drugs and legalised the use of psilocybin – the naturally occurring compound found in “magic mushrooms” – for medical treatment. This comes as biotech companies developing psilocybin therapy, such as Compass Pathways, look to raise capital funding through IPOs.

On both sides of the Atlantic, guided therapy using psilocybin as a conduit is gaining ground, while investor interest is surging. Psychedelics stocks are fast becoming a hot topic in the biotech sector.