Psychedelics are going mainstream. Investing in them hasn’t
…from a financial perspective, the inconsistency of psychedelic experiences and the fact that they require hands-on psychological therapy make for a difficult investment pitch. Treatment is typically administered in a specialized facility under supervision by psychiatric professionals, which is costlier and harder to scale up than simply providing medicine.
The industry’s market performance reflects such fears, which are magnified at a time when higher rates make riskier stocks harder to own. While many psychedelic companies listed in the stock market with much fanfare in recent years and surged as the biotech bubble peaked around 2021, the industry has nosedived more recently. The AdvisorShares Psychedelics ETF is down over 80% since its 2021 inception. Shares in Atai Life Sciences, a prominent startup backed by billionaire Peter Thiel, are down over 90% since going public at a $3 billion valuation.
Original Article (Wall Street Journal):
Psychedelics are going mainstream. Investing in them hasn’t
Artwork Fair Use: kschneider2991
Recent Comments