The psychedelics market is all set for explosive growth in the upcoming decade primarily driven by the prospects of widespread legalization in several countries. According to a research report by Research and Markets, the Psychedelic Drugs Market is forecast to touch US$10.75 billion by 2027, up from US$4.75 billion in 2020, indicating an annual growth rate of 12.36%.
The increasing acceptance of psychedelic drugs used in the treatment of depression and other mental disorders is the key factor of double-digit growth making companies such as Filament Health a top bet right now.
Filament Health is a Vancouver-based company that is focused on natural psychedelic drug discovery and extraction technology. It propagates psychedelic plants, performs extraction procedures, conducts genetic research while distributing IP and drug candidates to drug developers, researchers, and other licensed providers.
Filament Health has significant experience in extraction technology and commercialization. It has a solid IP portfolio, a Health Canada psilocybin Dealer’s license, and an in-house GMP-grade manufacturing facility. The company is building a robust foundation to scale its drug development pipeline at an accelerated pace.
Massive opportunity for Filament Health
Filament Health continues to make progress in the psychedelic space. It was the first to launch FDA-approved natural psychedelic products and has bagged clinical trials with the University of California San Francisco.
According to Filament Health’s investor presentation, there are around 130 active clinical trials all around the world that aim to demonstrate psychedelics as an effective mental health treatment in North America.
Approximately 246 million people in the world are diagnosed with depression and another 275 million have anxiety disorders. The annual spending for depression and anxiety disorders stands at $4 billion and $4.5 billion respectively.
With the regulatory environment changing quickly, the timing couldn’t be any better for Filament as natural psilocybin therapy has been legalized in Oregon and decriminalized in eight other cities in the U.S. Health Canada has also granted multiple psilocybin compassionate use exemptions.
Recent capital raise
In May 2021, Filament Health announced it entered into an agreement with Echelon Wealth Partners and Canaccord Genuity Corp to sell subscription receipts via private placement at a price between $0.40 and $0.50 per unit to raise up to $10 million, allowing it to list on the NEO stock exchange.
The net proceeds of the offering will be used for clinical trials, research and development, intellectual property initiatives, working capital, and other general corporate purposes.
Filament Health stock went public on June 24th and touched a record high of $0.50 per share last month. It is currently trading at $0.345 per share allowing investors an opportunity to buy the dip in a company that is part of a rapidly expanding addressable market.