Will MAPS Readouts Turn Around The Psychedelic Industry?

Name: Will MAPS Readouts Turn Around The Psychedelic Industry?
Uploaded: 2023-08-23
Channel: Shadd Dales
Description: It’s been a tough summer for both the cannabis and psychedelics industries. It’s been causing investors a lot of concern. Is there hope that the MAPS readouts might turn it around? On this Trade To Black, host Shadd Dales, Anthony Varrell, and Benjam

By Shadd Dales On Aug 23, 2023

It’s been a tough summer for both the cannabis and psychedelics industries. It’s been causing investors a lot of concern. Is there hope that the MAPS readouts might turn it around? On this Trade To Black, host Shadd Dales, Anthony Varrell, and Benjamin A. Smith mull over the six week decline in the sector, capping a discussion that started in our TDR Top 5 Developments For The Week.

Speculations are running rampant about the anticipated MAPS readouts. These would be the results of psychedelic clinical trials. Earlier this year, GIPSE (the Global Initiative for Psychedelic Science Economics) used MAPS’ then-available Phase 3 data to compile an analysis of cost-effectiveness which estimated that MDMA-AT would generate a substantial health care savings for patients with post traumatic disorder.

We have little doubt that the readouts will be momentous, generally, for the sector, but biotech can be a tricky landscape. So, the question then is: with the upcoming readouts from MAPS (Multidisciplinary Association for Psychedelic Studies), is there is hope for a positive turnaround in psychedelics for investors? Will the readouts truly have a significant impact on the industry as a whole, or will only a handful of companies reap the benefits?

It seems that it’s very likely that not all companies will thrive – or possibly even survive.

We kick off this podcast with our predictions for how the MAPS readouts will impact the psychedelics space and the market. Then we’ll take a look at the concerns many have when investing in companies working in the psychedelic industry.

Companies like Numinus Wellness (TSX: NUMI), with its partnership with MAPS and involvement in clinical trials, stand to gain the most. However, for the sector as a whole, the approval process and subsequent commercialization will take time. Even for Numinus Wellness, profitability is not imminent.

If the MAPS tide won’t lift all boats, will the sector eventually have bigger, institutional buyers? We explain more.