Psychedelic drugs, also known as hallucinogens, are a class of substances that alter perception, mood, and various cognitive processes. They can cause profound changes in thought patterns, sensory perception, and emotional states. The increasing acceptance of psychedelic therapies for mental health disorders drive the psychedelic drugs market. Psychedelic drugs such as psilocybin, MDMA, and ketamine are being studied for their potential to treat conditions such as depression, PTSD, and anxiety. This shift towards recognizing the therapeutic benefits of psychedelics, rather than their recreational use, has led to increased investments and partnerships in the industry. However, challenges such as regulatory hurdles, stigma, and needing more clinical data remain. Despite these challenges, the market is expected to grow as research progresses and regulatory frameworks evolve to support these treatments.
The Global Psychedelic Drugs Market size was valued at USD 2.71 billion in 2023 and is projected to reach USD 7.35 billion by 2031, with a CAGR of 13.3% during the forecast period of 2024 to 2031.
Below are the Top Five Psychedelic Drugs Companies with a Significant Market Share:
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Rank
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Company
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Overview
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Product Portfolio
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Sales Geographical Coverage
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Developments
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1.
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Jazz Pharmaceuticals, Inc.
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The company is focused on developing innovative therapies for neurological and psychiatric disorders, which positions it well to capitalize on the growing interest in psychedelic drugs for mental health treatments. In addition, Jazz Pharmaceuticals' commitment to research and development, its established market presence, and its strong financial position make it a key player in the global psychedelic drugs market. Jazz Pharmaceuticals plc, a leading biopharmaceutical company, has a significant presence in the global psychedelic drugs market.
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North America, Europe
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In October 2018, Jazz Pharmaceuticals plc announced that the U.S. Food and Drug Administration (FDA) had approved its supplemental new drug application (sNDA). The approval revised the labeling for Xyrem (sodium oxybate) oral solution, CIII, to include an indication for treating cataplexy or excessive daytime sleepiness (EDS) in patients with narcolepsy aged seven and older.
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2.
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Janssen Pharmaceuticals, Inc.
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Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, is a major player in the global pharmaceutical industry with a focus on neuroscience, including developing treatments for mental health disorders. In the emerging field of psychedelic drugs, Janssen has shown interest in researching and developing new therapies. The company's involvement in the psychedelic drugs market is primarily through its research programs focused on exploring the therapeutic potential of psychedelics, particularly for conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Janssen's strong research capabilities and its established presence in the pharmaceutical industry position it as a key player in shaping the future of psychedelic medicine.
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North America, Middle East and Africa, Europe, South America, Asia-Pacific
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In August 2020, Janssen Pharmaceuticals, Inc. received approval for its Spravato nasal spray for the treatment of suicidal people. As per the data published, approximately 11% to 12% of Americans suffer from major depressive disorder that leads them to commit suicide. Hence, this approval provided these patients with a remarkable therapy and allowed the company to generate more revenue.
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3.
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Pfizer Inc.
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Pfizer Inc. is a leading global pharmaceutical company known for its innovative medicines across various therapeutic areas. While Pfizer's current focus in the psychedelic drugs market is not as prominent as some other companies, the company has shown interest in mental health treatments. Pfizer's acquisition of Array BioPharma in 2019 expanded its oncology portfolio but also brought potential in the area of central nervous system disorders, including depression and anxiety. This acquisition could potentially provide Pfizer with a foothold in the psychedelic drugs market, as psychedelic therapies often target these disorders. Pfizer's strong research and development capabilities, global reach, and financial strength position the company to play a significant role in the evolving landscape of psychedelic medicine.
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North America, Middle East and Africa, Europe, South America, Asia-Pacific
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In July 2023, U.S. pharmaceutical company Pfizer (PFE.N) and venture firm Flagship Pioneering announced a joint investment of USD 100 million to develop up to 10 new potential drugs. The focus areas for these drugs include internal medicine, oncology, infectious diseases, and immunology. Both Pfizer and Flagship will contribute $50 million each to this endeavor. Flagship, known for incubating biotech companies like Moderna Inc (MRNA.O), will lead the drug discovery initiative through its Pioneering Medicines division.
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4.
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Verrian
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Verrian is a leading pharmaceutical company known for its significant contributions to the global psychedelic drugs market. With a focus on research and development, Verrian has emerged as a key player in the field, striving to address unmet medical needs and advance treatment options for various psychiatric and neurological disorders. Leveraging its expertise in drug discovery and innovation, Verrian has developed a diverse portfolio of psychedelic compounds aimed at treating conditions such as depression, anxiety, PTSD, and addiction. The company's commitment to scientific excellence and therapeutic efficacy positions it as a pivotal player in shaping the future of psychedelic medicine.
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Germany
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In June 2020, Mota Ventures finalized the acquisition of Verrian, a European company focused on manufacturing psychedelic medicine. This will help the company expand its business and strengthen its product profile.
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5.
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Avadel
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Avadel is a specialty pharmaceutical company focusing on developing and commercializing differentiated pharmaceutical products primarily for treating central nervous system disorders. While Avadel's primary focus is not on psychedelic drugs, the company has shown interest in innovative therapies for neurological and psychiatric disorders. Avadel's portfolio includes products such as FT218, a novel, once-nightly formulation of sodium oxybate for treating excessive daytime sleepiness and cataplexy in patients with narcolepsy. While not directly related to psychedelic drugs, Avadel's expertise in central nervous system disorders could potentially translate into future developments in the psychedelic drugs market, particularly for conditions such as depression, anxiety, and PTSD.
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Ireland, U.S., and France
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In September 2019, Avadel product named FT218 for narcolepsy declared that the U.S. Food and Drug Administration (FDA) has agreed to the proposed analysis and statistical analysis plan under its Special Protocol Evaluation Agreement (SPA) resulting in a low sample size required for demonstrating significance for excessive daytime sleepiness and cataplexy in narcolepsy patients. This company is focused on developing sodium oxybate in the market.
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Conclusion
The global market for psychedelic drugs is experiencing significant growth, fueled by a shift towards recognizing their therapeutic benefits for mental health disorders. Pharmaceutical giants and biotech firms are leading this growth, investing heavily in the research and development of psychedelic therapies. Companies like Compass Pathways, MindMed, and Field Trip Health are at the forefront, developing innovative treatments for conditions such as depression, PTSD, and anxiety. Despite regulatory hurdles and stigma, the market is expected to grow substantially despite challenges. As research progresses and regulatory frameworks evolve, these companies are well-positioned to drive further growth and innovation in the market, shaping the future of mental health treatment worldwide.
