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Why the nascent psychedelics industry is getting investors attention

The Globe and Mail Jameson Berkow Published March 2, 2021 Moha El-Jaw/iStockPhoto / Getty Images Could the burgeoning psychedelics sector end up spawning a major stock rally that could dwarf the cannabis-driven market mayhem of the past decade? According to Maruf Raza, a partner and national director of public companies at MNP LLP in Toronto, “From a market perspective, you could argue the blue-sky opportunity for psychedelics is far, far greater [than for cannabis].” Mr. Raza is part of a growing group of market watchers expecting vast sums of money to pour into companies studying psilocybin, ketamine, LSD and other so-called “hard drugs” for medical purposes. But because the nascent sector is largely organized around disrupting the global anti-depressant market, which is worth tens of billions of dollars annually to pharmaceutical giants, investors see less policy risk.

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