What Decriminalization in Oregon and DC Means for Psychedelic Investors

November 3rd was a historic day for the psychedelic community as three major ballots were passed that will further the adoption of psychedelics. 

These measures will expand the conversation around the healing properties of psychedelics and are a step forward in greater adoption. 

We are excited for the increasing positive public perception for the use of psychedelics in therapy, but in this article we are going to look at what these measures mean for investors in the space. 

Psychedelics stocks are rallying on Oregon and DC’s news according to the Psychedelic Invest Index, the first index to cover the entire psychedelics marketplace.

The index opened up more than 9% off the backs of stocks such as Compass Pathways (CMPS) and MindMed (MMED). 

The three initiatives passed on November 3, 2020, plus the four previous that have already been passed, are showing the market that psychedelics are here to stay and grow. 

Reversing legislation, especially with support as high as 76% of voters in DC in favor of decriminalizing psilocybin, appears to be highly unlikely. Instead, it’s likely that many more states and cities will pursue decriminalization efforts of their own.

Before November 3, 2020, cities had only gone as far as decriminalizing psychedelics. Decriminalization is an amazing step towards psychedelics adoption, but where it progresses in acceptance, it lacks in legitimization.

Oregon, with Measure 109 though, has changed that by legalizing the use of psilocybin for therapy. This measure legitimizes the use of psilocybin and other psychedelics as compounds that individuals, companies, and investors should all be looking at. 

As investors, we can compare Measure 109 to when cannabis was legalized for medical use for the first time in the US. 

Although the initiatives passed on November 3, 2020 were important and every business in the space was watching, it ultimately won’t change much for their interaction with the US. 

Psilocybin and other psychedelics are still Schedule I drugs on the federal level and therefore companies will stay cautious. 

We predict that companies will continue to incorporate in Canada or abroad and will continue to focus on the European and Canadian markets for now. 

The good news though is that with every initiative that is passed, it is a shot across the bow of pharmaceutical and biotech companies. 

Although business will most likely continue as usual, the amount of investor interest in psychedelics companies will increase by an order of magnitude after last night. 

We are already seeing renewed and expanded investor interest in the psychedelics space as the news of the most recent initiatives is being picked up by major news outlets such as WSJ, The New York Times, and CNBC. 

If there was ever an inflection point for the psychedelic market, it’s right now. 

2020 is shaping up to be a breakthrough year for psychedelics and there are no signs of it slowing down in 2021.