Psychedelic-Based Therapeutics Are Going Mainstream, And Lucy Scientific Discovery, Inc. Is Positioned To Lead The Revolution…Here’s Why ($LSDI)

Psychedelic-Based Therapeutics Are Going Mainstream, And Lucy Scientific Discovery, Inc. Is Positioned To Lead The Revolution...Here's Why ($LSDI)

Markets and media are covering more commonly what could become the most significant change in how patients with psychiatric and addiction disorders get treated. No, it's not another or new formulation of CBD. This time, psychedelic-based therapeutics are the focus. And not just from patients wanting an alternative to traditional and often addictive prescription medicines. 

Medical practitioners, governments, and regulators are also evaluating this new class of therapeutic which shows promising signs of effectively treating mental and addiction disorders. But attention is going beyond the potential these innovative therapeutics may offer, and it's going to the companies ushering in the potential treatment revolution. Lucy Scientific Discovery, Inc. (NASDAQ: LSDI) is one of them. 

In fact, few, if any, can argue that Lucy Scientific isn't ideally positioned to take advantage of opportunities in a red-hot psychedelics sector. Nor can they make a case that the company hasn't made the connections needed to advance quickly through research and development processes. The fact is they are, and they have.

And that's excellent news from a company and investor's perspective. From a business front, LSDI is positioned to tap into a sector that analysts already estimate as a more than $6 billion treatment opportunity. But by 2030, they expect the market to surge by treating indications including anxiety, PTSD, depression, and addiction disorders. If treating those conditions prove effective, psychedelics could theoretically target a combined $100 billion treatment opportunity. Of course, psychedelics won't earn the entire opportunity paycheck, but if similar to the track taken by CBD, they could enjoy a significant slice of the market potential.

Psychedelics- Not An "If" Proposition Anymore

Here's more to consider. It's not a matter of "if" but of "when" psychedelics go mainstream. Even the perception of psychedelics use in the counter-cultural fad of the 1960s is receding, replaced by the expected value that these treatment alternatives can add to 2020's medicine. 

And expectations are high, with a number of psychedelic pharmaceutical companies already in clinical-stage programs evaluating treatment candidates that follow a regulatory approval pathway similar to traditional drug candidates. These innovators, including Lucy Scientific, are blazing trails and showing through research that hallucinogens, including psilocybin, can be as effective or better at treating conditions like depression, addiction, and schizophrenia without the severe side effects and risks associated with conventional prescription medicines.

If so, this sector, and its leaders, are presenting a potential ground-floor opportunity to investors to take advantage of a sector emerging from its infancy. In other words, these "magic mushroom stocks," "shroom stocks," or "acid stock plays," as they are often referred to, are worthy of immediate attention. Still, similar to uncovering investment gems in other billion-dollar sectors, due diligence matters here. The good news is that it's not difficult to separate potential winners from industry posers. 

The even better news is that valuation disconnects are there for the taking.  

Leveraging A Health Canada Manufacturers License

Take Lucy Scientific as an example. At roughly $3.29 a share, it boasts a $53.86 million market cap. While impressive for a freshly listed company, it's short of others in the sector, including the market caps of Atai Life Sciences (NASDAQ: ATAI) and Compass Pathway (NASDAQ: CMPS), which boast $285.3 million and $379.2 million, respectively. Notably, those valuations are considered low by some analysts who understand that the psychedelic-treatment market could be exchanging billions of dollars for services faster than many think. Based on how fast companies in the sector are moving, that's likely.

ATAI is evaluating using ibogaine and ketamine to develop multiple drugs targeting various indications. And Compass is focused on the value of psilocybin as the lead in its lead drug candidate. Others, like Cybin (NYSE: CYBN) and Mind Medicine (NASDAQ: MNMD), with market caps under $100 million today, are advancing studies as well, testing the value of psychedelic substances for separate indications. In other words, there's plenty to evaluate before making any investment decision. And, as noted, applying some due diligence with a risk mitigation strategy could yield the safest play. That's where Lucy Scientific comes back into play.

A Valuable Health Canada License In Hand

Smaller in market cap than those listed, Lucy has a unique set of advantages. Foremost, it's been granted a Controlled Drugs and Substances Dealer's License under Part J of the Food and Drug Regulations promulgated under the Food and Drugs Act (Canada). That license was provided through Health Canada's Office of Controlled Substances in August 2021, allowing LSDI to explore the medicinal side, development, and manufacture of psychedelic compounds. The license does more. 

It also helps separate LSDI from the conceptual stage pack and allows risk mitigation by being licensed as a manufacturer. In other words, Lucy Scientific could end up working with all those companies mentioned if they don't have a connection to Canada. Moreover, they wouldn't face the significant trial risk or missed endpoints.

Better still, LSDI presents more than a single shot on goal. According to its website, research and development is a large part of LSDI's plan. And that could open the door to millions, even billions, in revenue-generating opportunities from other clinical-stage companies that need to show manufacturing capability to appease FDA concerns. It's no different in Canada. 

Companies wanting to penetrate that market need connections, too. The excellent news there is that the Canadian government is receptive to the data shown thus far from psychedelic-based drug studies. That's shown through them granting a valuable and hard-to-secure license to Lucy Scientific, which is expected to get plenty of work. 

Moreover, as a Health Canada-licensed company, LSDI has a considerable head-start against a competitive landscape still evaluating conceptual phases. Furthermore, the license can be instrumental in advancing the frontiers of mind science and facilitate the development of psychotropic and psychedelic treatment therapies purposely dedicated to producing various high-quality natural, synthetic, and biosynthetic products. Each can meet the needs and demands of the rapidly growing psychotropics-based medicines market.

LSDI Is Already Exploiting Sector Opportunities

There's more to justify a higher market cap for Lucy Scientific. Unlike others trying to break into the space, LSDI is already leveraging research and development partnerships that can unleash intrinsic value from its products and research services portfolio. Those relationships can accelerate tapping into the inherent potential of expediting the development of medicines and experimental therapies to treat specific psychiatric health and other medical needs disorders. 

Interestingly, big pharma names like Pfizer (NYSE: PFE) and Johnson & Johnson (NYSE: JNJ) are conspicuously absent from the player's list above. But it would be naive to believe they aren't interested in the space. More than interested, they are probably looking for ways to protect their mainstream treatment assets. To succeed, they will probably do what worked best over the past decade or two- acquire instead of develop. Thus, big pharma's interest presents an opportunity for emerging companies with tangibles to match ambition. Lucy Scientific has that.

Led by an expert management team, including a CFO that served mega-cap publicly-traded companies, LSDI has accrued credibility and value from customer acquisitions and relationships with leading universities, hospitals, and other public, private, and government institutions worldwide. And they are aligned in the same objective: research the benefits and conduct clinical studies to understand the therapeutic potential of a range of psychedelic substances.

Checking The Right Boxes For A Breakout 2023

Thus, with a NASDAQ listing providing credibility and assuring transparency, a valuable Health Canada license, and a management team able to execute on every level of product and market development, considering siding with a company undervalued compared to its peers and with a mitigated risk profile may be a wise consideration. Lucy Scientific Discovery checks those boxes.

And with many assets being put to work, the best news is that catalysts could be near. Speculation, yes, but remember that accredited investors don't often take an interest in a shell company; they likely know what's in the pipeline. Notably, they provided over seven million dollars as a vote of confidence, an indication that they may have liked what they saw. Thus, as is often the case for Wall Street considerations, the best strategy for investing in LSDI may be to follow the money.

 

 

Disclaimers: Hawk Point Media Group, Llc. is responsible for the production and distribution of this content. Hawk Point Media Group, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media Group, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media Group, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media Group, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Media Group, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, Hawk Point Media Group, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. HPM, LLC has been compensated by a third party up to five-thousand-dollars to provide research and produce digital content covering Lucy Scientific Discovery, Inc. Hawk Point Media Group, Llc previously published non-compensated content for Lucy Scientific Discovery, Inc. Readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website or those located at the conclusion of published content. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

Media Contact
Company Name: Hawk Point Media
Contact Person: Ken Ellis
Email: info@hawkpointmedia.com
Phone: 3057806988
City: Miami Beach
State: Florida
Country: United States
Website: https://hawkpointmedia.com/


Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.