Business deals, partnerships, and mergers in the psychedelics industry have shot up by 500% in the last four years as the sector has gotten hotter and hotter, according to a report from the GlobalData Pharma Intelligence Center Deals Database.
That includes more than 40 business deals done in the sector, Pharmaceutical Today reported, and involve companies that deal in not just psilocybin but also lysergic acid diethylamide (LSD), midomafetamine (MDMA), and other psychedelics.
One such deal highlighted by the report was Clearmind Medicine’s co-development partnership deal with Hebrew University of Jerusalem and Israel-based company SciSparc.
Although there are still no formally approved pharmaceutical psychedelic treatments for medical ailments such as clinical depression, many such treatment regimes are nonetheless in the works and aiming for the green light from the U.S. Food and Drug Administration. That move is required to get widespread production and sales going, Pharmaceutical Today reported.
The push toward mainstream legitimacy is largely what’s fueled the rise in dealmaking, the outlet reported.
The United States is leading the psychedelics sector internationally, with 63 privately held biotech firms involved in R&D regarding psychedelic medical applications. Canada and the United Kingdom were close behind, with 29 and 15 psychedelic firms, respectively.