Psychedelics Business Joins Lift Expo Comeback

Experts outline common psychedelics themes at Lift Expo

The Lift Expo event included a few introductory panels showcasing the potential and promise attached to what could be on the horizon for the psychedelics market.

During a business panel, Steve Hawkins, president and CEO of Horizons ETFs Management (Canada), said Canada is a leader in terms of the financial support it's shown to emerging industries like cannabis and psychedelics.

After sharing some of his cannabis investment takeaways, Hawkins said that from his perspective, 2020 offered a “fantastic” year for psychedelics investments, whereas 2021 has been more lackluster.

“Canada is a leader because of the regulation that allows the capital markets to invest in emerging companies,” Hawkins said. He added that he is encouraged by how many applications for psychedelic compounds are being studied, and how many may be looked at in the future.

The exchange-traded fund (ETF) executive said he expects to see a significant rush upwards for this emerging industry once there is a significant drug approval. “I don’t believe it’s a five to 10 year proposition,” Hawkins said.

The Lift Expo served as a strong reminder that experts believe the promise of this industry is attached to the possibility of big-name pharmaceutical companies introducing themselves to the market.

When asked by panel moderator Meris Kott, CEO and founder of Global Wellness Strategies, about who will come out on top in this industry, Stephen Murphy, co-founder and CEO of Prohibition Partners, said he would bet that large pharma stocks will take some of the most promising drug candidates all the way through approval.

Horizons ETFs launched the first psychedelics ETF, the Horizons Psychedelic Stock Index ETF (NEO:PSYK), earlier this year. At the time, Hawkins told INN volatility should be expected when it comes to psychedelics investments.

Throughout the day, more execs from public companies had a chance to speak. These included Ivan Casselman, chief psychedelics officer of Havn Life Sciences (CSE:HAVN,OTC Pink:HAVLF); Rob Tessarolo, CEO of NeonMind Biosciences (CSE:NEON,OTCQB:NMDBF); and Todd Shapiro, CEO of Red Light Holland (CSE:TRIP,OTC Pink:TRUFF).

Enthusiasm strong, but psychedelics need long-term timeline

Andrew Charrette, director of regulatory affairs and psychedelic advisor with KGK Science, told INN he is encouraged by the early data results from some psychedelic medicine studies.

However, market participants shouldn't expect approvals for these drugs until 2023 or even 2024, he said.

“I think the responsible companies are going to move things forward,” added the expert, who spoke during the “How Businesses Can Assist Regulators & Lawmakers Establish Best Practices” panel.

According to Charrette, investors will very soon start to see a clear separation between the companies that are really intending to pursue a drug-development model with approvals in mind, and those that can’t really afford to.

“It'll be difficult, and it's going to be difficult for even the best companies as they're still flying blind right now."

Investor takeaway

Psychedelics has established an investment presence, and as the industry continues to grow thanks to the development of novel drugs, the Lift Expo's attention represents another step of increased visibility.