This week, I’m kicking off a five-part series in Market Insights focused on the health care sector. It’s one of the few areas that hasn’t yet been fully disrupted by artificial intelligence (AI) - but it may ultimately prove to be the most upended in the coming decades.
The current system is broken. The overuse of prescription drugs to treat illness - rather than preventing it in the first place - is archaic and, frankly, maddening. As someone who prioritizes health and wellness, it’s frustrating to watch the U.S. health care system cling to outdated treatments while ignoring innovation. We all know why: money. Too often, the well-being of the patient takes a back seat.
That brings me to my first big investment opportunity in health care…
Stigma to Breakthrough
For decades, psychedelic drugs like psilocybin (from “magic mushrooms”), MDMA, and LSD carried a stigma that kept them out of mainstream medicine. But times are changing - fast. We’re on the verge of a medical revolution where compounds once dismissed as counterculture are being embraced as cutting-edge treatments for mental illness.
The numbers are staggering: nearly one billion people worldwide suffer from mental health disorders. Depression affects more than 280 million people, anxiety another 300 million. Standard treatments - SSRIs, anti-anxiety drugs, therapy - help some, but far too often they fall short. Psychedelics are showing they can do what traditional medicine has failed to accomplish.
Clinical trials from Johns Hopkins and Imperial College London found psilocybin can reduce depression symptoms after a single session - with effects lasting months. MDMA has shown promise for PTSD, with Phase 3 results showing two-thirds of patients no longer met diagnostic criteria. These aren’t incremental gains - they’re paradigm shifts.
That’s why the FDA is fast-tracking some therapies. Analysts project the psychedelic drug market to grow from under $700 million today to $7–10 billion by the early 2030s - a potential 10x surge.
Early Investor Momentum
Investors are already seeing sparks. ATAI Life Sciences (ATAI) jumped 10% last week on positive mid-stage results from its psychedelic nasal spray, BPL-003. Year-to-date, ATAI is up 295%, MindMed (MNMD) 53%, and Compass Pathways (CMPS) 52%.
This is still early-stage and high-risk. But history shows that backing disruption early - Tesla in EVs, Nvidia in AI - can be life-changing.
Bottom line: Psychedelics could transform medicine. For investors, this is a frontier sector with enormous upside - and it’s just getting started.
Remember: This is a high-risk, early-stage sector. Not every company will make it—but those that do could be true game-changers for both medicine and investors.
Here’s to the future,
Matt McCall
Editor, Market Insights
