ATLANTA, Jan. 04, 2021 (GLOBE NEWSWIRE) — 2020 was a banner year for investors in psychedelic companies as investors in Mind Medicine (MindMed) Inc. (OTCQB: MMEDF), 20/20 Global, Inc. (OTC: TWGL), Compass Pathways (NASDAQ: CMPS), and Numinus Wellness Inc. (OTC: LKYSF) saw their money triple and even quadruple. Psychedelic stocks are in a fast moving sector characterized by companies many analysts would consider speculative and overpriced; however, it is our opinion many psychedelic companies will continue to defy the rules of investing and bulldoze their way to higher prices in 2021.
New leaders may emerge, but the reason for this increased interest in psychedelics is improved mental health. We have said it before, and we will say it again, the real money in psychedelics will be made from FDA approved drugs for the treatment of depression and mental health. Depression is a common mental disorder affecting more than 264 million people worldwide. Mental health experts find a strong link between loneliness and depression and drug overdoses. According to national drug abuse data, drug overdoses have increased 42% since Covid-19 reared its ugly head. As a result, mental health disorders are on the rise in every country and could cost the global economy up to $16 trillion annually by 2030. The numbers are staggering, but outweighed by the loss of human lives. Mental health is something every one of us should be talking about.
In the early 1970s research into psychedelic medicine basically stopped overnight. Governments all over the globe classified psychedelics as illegal on the grounds they were drugs of abuse and had no medical use. But was that the real reason? Many of us are not convinced everyone in government has our best interest in mind on every decision. In the U. S. alone, the Mental Health and Substance Abuse Services industry includes over 17,000 facilities with combined annual revenue of approximately $50 billion. Tack on ancillary services and revenues jump to over $300 billion. The global antidepressants market is expected to grow from $14.3 billion in 2019 to about $28.6 billion in 2020 as mental health issues are expected to surge due to the effects of the Covid-19 pandemic. Even though huge advances in modern medicine have been made since 1970, with the exception of serotonin and norepinephrine reuptake inhibitors in the 1980s and 1990s, the mental health industry has not had major advancements in pharmacological therapies for mood disorders until the FDA approved esketamine in March 2019. Johnson & Johnson developed the ketamine derivative and sell it as a nasal spray called Spravato, used for the treatment of depression.