September 15, 2021

Why Kevin O’Leary Chose Psychedelics Over Cannabis | MindMed (MNMD) & COMPASS Pathways (CMPS)

Midas Letter
Midas Letter
Why Kevin O'Leary Chose Psychedelics Over Cannabis | MindMed (MNMD) & COMPASS Pathways (CMPS)
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Since we last talked with Shark Tank Venture Capitalist Kevin O’Leary back in 2019, he has become an investor in multiple psychedelic companies. The entire psychedelic industry is still in its infancy stages, having drugs still in phase I & II clinical trials with the FDA. The drugs haven’t officially been made into “medicines,” but that is the future and presents a speculative opportunity for investors.

Mind Medicine (MindMed) Inc (NASDAQ:MNMD, NEO:MMED) is Kevin O’Leary’s largest psychedelic equity position as the company is conducting the largest number of trials for different psychedelic compounds. But, he is also an investor in COMPASS Pathways PLC (NASDAQ:CMPS), Atai Life Sciences (NASDAQ:ATAI), and several private psychedelic companies.

“I believe the space will be a multi-billion dollar pharmacy space. You just don’t know when. You have to have patience. You just need one medicine to make it through and I think it will be a multi-billion dollar product.” – Kevin O’Leary

There will be volatility within the space, where some company’s drugs will successfully make it through trials, but others will not. Due to the size of the problem psychedelic companies are trying to solve, such as the enormity of mental illness or addiction worldwide, if just one drug is adopted as a medicine, it could be a billion-dollar product.

“All through FDA trails towards medicines. Things like LSD and psilocybin got a bad rap in the early 60s when they were misused. The medicinal opportunities were still available then, but they weren’t going through the clinical trials they should have been. Now, as an industry, we bring them back and we see promise.” – Kevin O’Leary

Watch the full Mr. Wonderful interview to understand the regulatory differences between psychedelics and cannabis, why he is backing psychedelics to become a multi-billion dollar market, and the stocks he is investing in.

Transcript

00:30 – Psychedelic market & invested companies
02:06 – Problem with the cannabis market
03:47 – Medicinal psychedelic opportunity
04:48 – Multi-billion dollar market
05:30 – Mental health area with largest psychedelic potential

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