Market Value: The Economics of Psychedelics as Medicine – PSYCH: The Psychedelics As Medicine Report 3rd Edition

Key Market Highlights

• Medical psychedelics companies are valued at over US$10 billion
• The medical psychedelics market is valued at US$190 million, with projections to exceed US$2.4 billion by 2026
• The COVID-19 pandemic has intensified the global mental health crisis, increasing demand for novel therapeutic tools such as psychedelic-assisted therapy (PAT)

Note to readers:
The value estimates presented here are top-level and provided for informational purposes only. For a more detailed market value forecast, please contact info@psych.global.

A Growing and Maturing Market

The market opportunity in the nascent but rapidly growing psychedelics space is being harnessed by a rising base of institutional investors seeking to establish and scale businesses in a sector showing both scientific validation and commercial promise.

Although capital invested in psychedelic companies has surpassed US$2 billion, the current value of medical psychedelics businesses exceeds US$10 billion. atai Life Sciences’ IPO earlier this year positioned it as the most valuable publicly traded company among the 47 listed businesses in the sector, with a valuation of US$2.4 billion as of September 2021.

Biotechnology and pharmaceutical companies continue to dominate the sector. However, investor appetite is expanding to include research clinics, therapy providers, and supporting software infrastructure. Canada’s capital markets remain a preferred jurisdiction for psychedelic companies seeking public listings and growth capital.

Ketamine Clinics and Cost Pressures

There are currently over 100 ketamine clinics operating in the United States, with many more in development. Despite regulatory approval in the UK, Johnson & Johnson’s Spravato (esketamine) failed twice to gain approval from NICE, which cited concerns over cost-effectiveness relative to NHS resources and the lack of long-term outcome data.

Spravato costs approximately £10,000 (US$14,000) per course of therapy. In the United States, pricing analysis suggested that Spravato would need to be reduced by around 40% to be considered cost-effective for the treatment of treatment-resistant depression (TRD).

Regulatory Progress and the Approval Landscape

While ketamine has long been used off-label for depression, it was not until 2019 that Spravato received FDA approval, followed by European Medicines Agency (EMA) approval in 2020 for TRD and psychiatric emergencies.

Currently, MAPS’ MDMA-assisted therapy for PTSD is the only psychedelic therapy in Phase III clinical trials with commercialisation goals. Globally, there are 82 active Phase II psychedelic trials, with 45% completed. Among these, Usona Institute and COMPASS Pathways are advancing psilocybin therapies for depression.

Due to lengthy clinical, regulatory, and review timelines, this analysis focuses on ketamine, psilocybin, and MDMA, as these compounds are either already in clinical use or approaching widespread therapeutic review.

Forecasted Revenues and Healthcare Savings

Based on MAPS’ therapy objectives during its 2023–2029 data exclusivity period, total healthcare savings are projected to reach at least US$18 billion, alongside approximately US$7 billion in revenues from therapy delivery and therapist training.

Assuming linear growth in ketamine clinics and an average treatment cost of US$600 per course, revenues could exceed US$3 billion over the same period, with healthcare cost savings broadly matching revenue gains.

Projected Growth of the Medical Psychedelics Market

Market modelling focuses on therapy training and service delivery, reflecting current market conditions. In 2021, ketamine-assisted therapy dominated the market, with esketamine used specifically for TRD.

Compassionate use pathways are expected to increasingly include psilocybin and MDMA, supported by policy advocates and healthcare stakeholders. MDMA is already available under compassionate use in Israel, Switzerland, and Canada, while psilocybin compassionate-use exceptions were expected in Europe in 2022, with Canada’s Section 56 exemptions offering another early-access route.

Market projections account for:

• Therapist availability and capacity
• Consumer willingness to engage in treatment
• Adjacent revenues such as therapist training and complementary services (e.g. digital therapeutics)

Underground and non-medicinal markets are not included.

Psilocybin therapy is expected to grow through expanded clinical access beginning in early 2023, acting as a catalyst for wider societal acceptance and regulatory reform. MDMA-assisted therapy is projected to gain significant market share from 2024, driven by advanced trial stages and MAPS’ early lead in therapist training.

Scaling the Therapist Workforce

Numerous organisations — including MIND Foundation and COMPASS Pathways — are developing structured training programmes for psychedelic therapists. Diversity in training pathways allows practitioners to align education with clinical goals.

Future growth will depend heavily on government subsidies and university-embedded training programmes, which could significantly expand access, increase workforce capacity, and support the anticipated approval of additional PAT modalities.

The Cost of Mental Illness — and the Opportunity for Change

Mental health conditions impose a heavy societal and economic burden, affecting quality of life, productivity, and healthcare systems. Outside direct healthcare spending, losses stem largely from reduced labour participation and impaired productivity.

Economic modelling across Europe and North America shows that investment in effective mental health innovations could meaningfully reduce both direct treatment costs and indirect productivity losses, assuming current clinical efficacy is replicated at scale.

Employer-related cost savings alone could reach US$64 billion in Europe and US$270 billion in the United States, where healthcare costs are significantly higher — more than four times greater for opioid use disorder (OUD) and six times greater for major depressive disorder (MDD).

Mental Health in the Wake of COVID-19

During the pandemic, symptoms of depression and anxiety surged. Using NHS-modelled data, projections suggest:

• 139% more depression cases in Europe
• 21% more PTSD patients, costing European healthcare systems an additional US$41 billion

In the United States, new and additional mental health support could cost US$185 billion for depression and US$33 billion for PTSD, affecting 29 million people.

“I believe that psychedelics represent one of the best shots we have in combatting the mental health crisis. Now it’s all about execution — transforming prior evidence into FDA-compliant, rigorous scientific data so we can bring new treatments to the people who really need them.”
Christian Angermayer, Founder and Chairman, atai Life Sciences

Long-term trauma modelling suggests that COVID-19 could rival or exceed the mental health impact of 9/11. Applying longitudinal PTSD research indicates that PTSD cases could rise by 28 million and depression cases by 29 million in the US alone, representing over US$1 trillion in illness-related costs.