PsyCap Recap: 3 Key Takeaways From the MNP Presentation at Psychedelic Capital

This intriguing presentation from MNP is from our November 2020 edition of Psychedelic Capital. You can get FREE access to recordings here using discount code ‘PSYCAP’! To learn more about our amazing Psychedelic Capital sponsors, click here!

 

Investors getting involved in the modern psychedelic renaissance have many valuable lessons they can draw from the cannabis industry across capital markets. While psychedelic medicine may not have a direct path to profit like cannabis did on the heels of legalization, there are still many important parallels that experts are highlighting. The experienced team of investors at MNP are well versed in the cannabis sector and are now bringing these expertise to the psychedelic industry. MNP’s leadership team, which includes Maruf Raza, Brandon Roop, and Michael Franks dove deep into the investment landscape at our last Psychedelic Capital event. Here are three key takeaways from their engaging presentation, moderated by Jameson Berkow, Co-Founder & Editor-In-Chief, The Weekly Chronicle.  

Key Takeaway #1: Unlike Cannabis, Psychedelics Are Mainly a Biopharmaceutical Play 

At the top of MNP’s presentation, partner and national director of public companies, Maruf Raza, highlighted an important distinction between psychedelics and cannabis. He mentioned that out of the gate, everybody thought that the psychedelics space was a cultivation type sector, as if it was a second coming of cannabis. However, Raza noted that people quickly realized that psychedelic medicine is much more of a biopharmaceutical type sector with ample R&D opportunities. This important difference between the two industries shapes the type of opportunities the space presents and helps drive much of the investor behavior that governs them.


While cannabis investors have been all about the quick go-to-market pathways, psychedelic medicine has a longer yet more substantial path to revenue. These include drug development plays as well as clinics, specifically ketamine clinics in North America, as highlighted by Maruf. The team at MNP is backing companies with deep scientific knowledge and experienced clinical leadership teams. The MNP leadership team’s extensive cannabis experience, especially when it comes to investments and capital markets, allows them to draw deep insights from how the cannabis landscape has unfolded. 

Want to dive deeper into the parallels and contrasts between psychedelics and cannabis? Make sure to check out our monthly evidence-based blog series Psychedelics Versus Cannabis. Last month’s edition covered the financial landscape and featured Mitchell Osak. You can read it here!

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Key Takeaway #2: Money Will Follow Efficacy in the Movement to Medicalize Psychedelics

Robust clinical research has been the bedrock of the modern psychedelic renaissance and investors are getting wise to the state of psychedelic science. In a powerful takeaway from the MNP talk, Mike eloquently stated that “money will follow efficacy” as psychedelic drugs come to market. Indeed, recent studies have been indicating psychedelics are profoundly more therapeutic in the treatment of conditions like depression than currently available pharmaceuticals, such as SSRI’s. Mike goes onto explain that the companies boasting these efficacy rates for their treatments won’t have trouble finding investments. Furthermore, the FDA will follow the efficacy and have already granted both psilocybin and MDMA “breakthrough therapy” status, further expediting their use in clinical research. 

One particularly memorable moment during MNP’s presentation was the following insight by Mike: “you can take as many psychedelics as you want and they won’t kill you. Efficacy rates are in some cases 2-3 times better than the pharmaceuticals being used today to address some global ailments and aren’t doing a great job. It’s going to be pretty hard for the regulators to not pay attention or at least give them a fighting chance towards legalization.” 

Indeed, the psychedelic renaissance is coming at a necessary time in our collective evolution between the global pandemic and the mental health crisis. From big pharma to big name investors, the market is ready. 

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Key Takeaway #3: Psychedelics Will Disrupt the Global Pharmaceutical Supply Chain

The final key takeaway from the MNP presentation was the simple yet powerful fact that psychedelics are poised to disrupt the global pharmaceutical supply chain. The currently available research into psychedelic compounds is rapidly expanding and demonstrating their significant potential to radically treat mental illness. Ketamine, a dissociative anesthetic, is already being used to radically treat acute suicidality and treatment resistant depression. It is now being used in psychedelic-therapy assisted sessions as well, setting a powerful precedent for how the industry will expand to use other drugs, like psilocybin and MDMA. Furthermore, the team at MNP described how there’s a fast track to NASDAQ and the capital markets through Canada due to their RTO structure, putting Canadian psychedelic companies at an unique advantage. With capital markets already active from psychedelic activity, the highly experienced investment team at MNP is ready to apply their deep insights and wisdom to this burgeoning sector.

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Looking Ahead for MNP

Our last Psychedelic Capital event saw some genuinely engaging and insightful presentations, of which MNP’s truly stood out. From their deep and diverse experience in cannabis to capital markets, their team is ready to collaborate and invest in the nascent psychedelic space. As the evolution of this industry continues, investors and enthusiasts alike will want to keep their eye on MNP.

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