What's in a Name? Psychedelics IP Discussion Heats Up

Experts say IP protection generates investor value

One business support expert told INN he is encouraged by the collaboration and support he has seen throughout the emergence of the psychedelics market. But at the end of the day, the industry is aiming to model itself on the pharmaceutical world, where patent protection is key.

“From a business perspective, I think that is important and needs to be there,” Andrew Charrette, director of regulatory affairs and psychedelic advisor with KGK Science, told INN at the Lift Expo’s psychedelics day in 2021. “It's what brings value to the investors.”

KGK Science is an advisory firm focused on supporting firms researching drugs through the regulatory process.

Matt Carr, chief trends strategist at the Oxford Club, agrees with Charrette. He previously told INN he sees patents as the ultimate end goal to monetize the industry and add value for investors. “The goal is you’re going to eventually monetize this breakthrough treatment, (and) investors are going to pay a premium now for a lack of revenue and sales, because in the long term that’s where that money is going to come from,” Carr said.

Late in 2021, COMPASS Pathways (NASDAQ:CMPS) told investors it had received approval from the US Patent and Trademark Office (USPTO) for a crystalline form of psilocybin.

“With each new patent grant, the USPTO is recognising our innovation, enabling us to continue to do the highest quality clinical research and to broaden our portfolio of evidence-based therapies for patients who urgently need better options,” George Goldsmith, CEO and co-founder of the company, said.

This approval represents the eight patent granted for the company across jurisdictions.

Investor takeaway

Leaders in the psychedelics business often say they want to follow the pharmaceutical drug development process, and use this comparison to forecast to what the market could look like in the future.

But following a pharmaceutical pathway also means adopting tactics surrounding the protection of drug property.

The question now posed to the industry is how much of an impact IP protections will have when it comes to particular uses of substances that many advocates think should be available to patients across the board.