Silicon Valley Bets Billions On Rise Of “Digital Therapeutics”
“Tech set to transform $3 trillion health care industry.” - CNBC
“The next big thing always starts out looking like a toy.”
That’s what Chris Dixon, a partner at premier Silicon Valley venture capital firm Andreesen Horowitz, said about innovation.
He’s 100% right.
That’s why so few investors ever really catch on to the next big thing.
The Facebook, Twitter, iPads, Fitbits, and practically every device and service seemed like a fun toy at first.
Early investors who saw their true potential made billions of dollars.
The same is true for Silicon Valley’s bet on the “next big thing” in health care.
It seems a bit unbelievable at first. Mainly used by a handful of young people for pure pleasure.
But looking at the science and research, it has the potential to be far bigger than that.
Investors who realize the true potential of this “next big thing” now could make fortunes as it all unfolds too.
An Ultimate Disruption Opportunity
Peter Thiel and Bob Parsons are just two of the many high-profile names from Silicon Valley (and Wall Street) who are leading the charge into one of the most controversial, yet highest potential, mental health care innovations in decades.
They along with other Silicon Valley heavyweights are betting big on psychedelic drug research and commercialization.
Like I said, seems a bit unbelievable at first.
But once you dig into it, medicinal psychedelic drugs are the perfect opportunity to innovate and disrupt the massive mental health care sector.
Psychedelic drug R&D is targeting new drug therapies for mental health conditions. Meanwhile, a Mental Health Crisis rages around us.
More than 1 billion people suffer from assorted afflictions. Mental health services is a $225 billion treatment market in the U.S. alone.
Yet existing drug therapies for (in particular) depression, addiction and PTSD are producing grossly inadequate results.
- Two-thirds of U.S. veterans treated for PTSD are dissatisfied with the treatment they are receiving
- Two-thirds of Americans exhibiting symptoms of depression don’t even seek treatment – because front-line drugs are only marginally effective
- Tobacco companies actually invest in “tobacco cessation” products – precisely because of their low success rate
- These are all individual multi-billion-dollar treatment markets, desperately in need of more effective drugs. But next-generation treatments for these disorders aren’t going to come from Big Pharma.
Multinational drug companies have largely walked away from R&D on mental health treatments. By 2016 they had already reduced spending in this area by 70%, according to The Guardian.
Move Over Big Pharma, Here Comes Silicon Valley
Multinational drug companies have left (almost) an open playing field for entrepreneurs looking to bring new drugs to market to address the Mental Health Crisis.
Psychedelic drugs appear to be the answer. A host of different clinical trials have been delivering spectacular treatment results for depression, anxiety, addiction, PTSD and other medical disorders.
Now Silicon Valley innovators are hunting for unicorns from among formerly reviled street drugs like “magic mushrooms” (psilocybin), “acid” (LSD), and “ecstasy” (MDMA).
And they have already bagged one.
Compass Pathways (US:CMPS) is now in a Phase 2 clinical trial for its psilocybin-based therapy for treatment-resistant depression. It has been granted Breakthrough Therapy Designation by the FDA.
Following the completion of its IPO financing, Compass sits with a market cap of $1.28 billion. Thiel is a major shareholder.
More unicorn opportunities are certain to come. Even in its infancy, this sector has already been raising some serious capital.
Compass itself has now raised in excess of $200 million. Hundreds of millions in additional funding has been spread across the startups (public and private) and non-profits that are racing to produce the next drug research winner.
Silicon Valley may be leading the charge to capitalize on new opportunities with psychedelic drugs.
However, there is plenty of room for retail investors to climb onto the bandwagon.
This isn’t a “toy” or passing fad.
The science and clinical research says the opposite.
Everything is in place for a sustained bull run in psychedelics.
There’s a huge need, in multi-billion-dollar treatment markets that are ripe for disruption. Unicorn-sized potential.
And forward-thinking investors are getting on the ground floor of it all now.
Good Hunting!
“May revolutionize mental health care.”
- Fortune Magazine
Consider Investing In Psychedelics Now
The mental health care industry is long overdue for major innovation.
Anti-depressants, many developed in the middle of the last century, have consistently proven to not be the most effective treatments or even possibly counterproductive in many cases.
Psychedelics have the potential to be the disruptive force that shakes up the entire mental health sector.
And now novel psychedelic treatments have attracted the financial backing of some of the biggest money investors in the world and can truly advance clinical research in psychedelics targeted at the most promising solutions.
That final change – the infusion of capital – will change everything for all facets of the psychedelics industry.
Companies like Mind Cure (OTCQB: MCURF | CSE: MCUR) may be positioned to ride the psychedelics boom all the way to the top.
Read our report on the three hottest psychedelic stocks every investor should research.
All the best,
Dynamic Wealth Research
MIND CURE (OTCQB | CSE: MCUR): READ OUR FULL RESEARCH REPORT ON THE UPSTART PSYCHEDELIC COMPANY SET TO DISRUPT THE $300 BILLION INDUSTRY