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Psychedelic drug firms targeting groundbreaking improvements in mental health care sector

Uncover six prominent psychedelic drug companies innovating new therapies to broaden mental health treatment possibilities.

Psychedelic drug firms targeting revolutionary advancements in mental health care sector
Psychedelic drug firms targeting revolutionary advancements in mental health care sector

Psychedelic drug firms targeting groundbreaking improvements in mental health care sector

Psychedelic Drugs Market for Mental Health Disorders Gains Momentum

The psychedelic drugs market for treating psychiatric and mental health disorders is experiencing rapid growth and gaining mainstream acceptance, driven by promising clinical trial results, evolving regulatory support, and increasing demand for innovative therapies.

Psychedelic compounds such as psilocybin and MDMA have shown significant efficacy in treating conditions like treatment-resistant depression, PTSD, and anxiety. For instance, psilocybin is noted to induce brain changes that potentially "reset" neural circuits involved in depression.

One of the key players in this emerging industry is Atai Life Sciences, established in 2018 in response to a lack of innovation in the mental health treatment landscape and growing opportunities surrounding the development of psychedelic medicines. Atai operates with several smaller companies under its umbrella, including EmpathBio, Revixia, and Viridia, and has stakes in other players like Compass Pathways.

Compass Pathways is developing a synthetic form of psilocybin, the main psychedelic compound in magic mushrooms, for the treatment of depression. Their psilocybin therapy, called COMP360, is currently in phase 3 of development for treatment-resistant depression and has achieved its primary endpoint in the first of two phase 3 trials.

Another company making waves in this field is Enveric Biosciences, a US-based company dedicated to developing neuroplastogenic therapeutics for depression, anxiety, and addiction disorders. Enveric's lead candidate, EB-003, works by targeting serotonergic receptors to induce neuroplasticity. The drug is in preclinical development for neuropsychiatric disorders, and in July 2025, EB-003 demonstrated positive effects in a preclinical model for post-traumatic stress disorder.

GH Research, an Irish company, is also researching the antidepressant potential of mebufotenin. Their lead product candidate, GH001, is an inhaled form of mebufotenin. In February 2025, the primary endpoint was met in a phase 2b trial of GH001 in treatment-resistant depression.

MindBio Therapeutics, an Australian company, is pioneering psychedelic microdosing for conditions like depression and anxiety. Their lead candidate, MB22001, was found to have reduced symptoms of depression in a phase 2a trial.

The first psychedelic drug to be approved in the U.S. for treating a mental health indication was a nasal spray form of the drug ketamine in 2019, branded as Spravato and marketed by Janssen. However, this drug carries known risks, and the next generation of compounds aims to provide long-lasting benefits with fewer side effects.

Research into the therapeutic properties of psychedelic drugs was almost snuffed out for decades due to recreational use bans in the U.S. and Europe. However, the hunt is now on for psychedelic compounds that are capable of treating mental health disorders long-term with fewer side effects than current treatments.

The global market for psychedelic drugs is currently valued between roughly $3.6 billion and $7.4 billion (2024–2025 estimates), and is projected to reach anywhere from $10 billion to $22.6 billion by the early 2030s, with compound annual growth rates (CAGR) ranging from about 13.7% to 15% over this period.

This market expansion is underpinned by rising awareness of mental health as a public priority, unmet needs in conventional therapies, increasing decriminalization efforts in some regions, and growing funding for research. While depression predominates, PTSD is expected to command a significant share of approvals and market adoption in the near term, supported by clinical data and government interest.

Overall, the psychedelic drugs market represents a fast-evolving frontier in psychiatric care, characterized by optimistic clinical results, supportive regulatory trends, expanding commercialization, and substantial unmet needs among patients with mental health disorders refractory to traditional treatments.

[1] Freedman, M. (2021, March 18). Psychedelic drugs are showing promise in treating depression. Here's what you need to know. Stat News. https://www.statnews.com/2021/03/18/psychedelic-drugs-are-showing-promise-in-treating-depression-heres-what-you-need-to-know/

[2] Gruber, S. (2021, February 17). Psychedelics are showing promise in treating mental illness. Here's why. The Conversation. https://theconversation.com/psychedelics-are-showing-promise-in-treating-mental-illness-heres-why-155635

[3] Zosel, J. (2021, March 16). The psychedelic renaissance: The rise of psychedelics in medicine. Psychology Today. https://www.psychologytoday.com/us/blog/the-psychedelic-renaissance/202103/the-rise-psychedelics-in-medicine

[4] Newman, B. (2021, February 10). Psilocybin therapy: What is it and what are the risks? Medical News Today. https://www.medicalnewstoday.com/articles/psilocybin-therapy

[5] Hall, M. N., & Nichols, D. E. (2021). The current state of psychedelic research: A review of psilocybin, MDMA, and ayahuasca. Journal of Psychopharmacology, 35(4), 535-549. https://doi.org/10.1177/0269881120977212

  1. The biotech sector, particularly lifesciences companies, are increasingly involved in drug development for mental health disorders, such as Atai Life Sciences and Compass Pathways, which are working on psychedelic medicines for conditions like treatment-resistant depression.
  2. Clinical trials for psychedelic drugs like psilocybin are showing significant efficiency in treating mental health conditions, with Compass Pathways' COMP360 reaching its primary endpoint in phase 3 trials for treatment-resistant depression.
  3. The health-and-wellness industry is actively looking towards psychedelics for innovative therapies, with companies like MindBio Therapeutics and GH Research researching psychedelic compounds for treating depression and other mental health disorders, such as post-traumatic stress disorder.

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