Psychedelics Treatment, Business, and Policy Futures: 8 Expert Takeaways

The application of psychedelic therapy for a range of mental and physical health issues is emerging as a transformative treatment method but federal policy has not kept pace with the industry’s rapid development. To understand the burgeoning business landscape surrounding this innovative therapy, the Hopkins Business of Health Initiative, in partnership with the Center for Mental Health and Addiction Policy, recently convened a panel of national experts to discuss the cutting-edge convergence of psychedelics, business, and policy.  

The panelists include Fred Barrett, PhD, Associate Professor, Department of Psychiatry and Behavioral Sciences, Johns Hopkins School of Medicine; Melissa Lavasani, Founder and CEO, Psychedelic Medicine Coalition; and Lia Mix, LMFT, CEO, Delphi, a consulting firm focused on  the integration of psychedelic-assisted therapy into the US healthcare system.

Together with our moderators, HBHI affiliates Matthew Eisenberg, PhD and Michael Darden, PhD, our panelists discussed the real world implications of psychedelics in health care, and what may come next. As promising developments are underway, here are 8 important aspects to understand. 

1. Different definitions of “psychedelic” abound. Barrett explained that the classification can be applied to a wide umbrella of different drugs that span a range of chemical classes, including psilocybin, found in hundreds of species of mushrooms, mescaline found in psychoactive cacti plants, and research chemicals like LSD, produced in a lab. MDMA, also known as Ecstasy, has also been used as an augmentation to therapy and recently studied for the treatment of PTSD.  

2. All psychedelic drugs share one common property: lack of FDA approval. “To date, none of these compounds yet have any approval as medicine in the United States or nearly any place in the world, and we still have a long way to go,” said Barrett. This is holding back progress in research, as no federal funding is currently available for studying these compounds, and the FDA plays a major role in clinical trials and potential approval for medical use.  

3. Their most powerful effects are not what you might think. “When people think of psychedelic drugs or hallucinogens, they may think of changes in visual perception or visual hallucinations or maybe very, very large feelings, like ecstasy or panic. But while all of these things may occur, they certainly don't occur for all people, and I'd argue they're of the least interesting potential effects of this range of mostly naturally occurring compounds,” said Barrett. “What makes them promising from a treatment perspective is how psychedelics manifest something unique and particular about the mind that the individual doesn’t normally have access to during normal waking consciousness.” 

4. The risks are real–and rare. To prepare healthcare systems and minimize potential harms, public education on both risks and benefits is crucial. For example, these types of drugs may not be psychologically safe for people who have a personal or family history of psychosis or bipolar disorder. 

5. While generally safe, the experience for patients can still be extremely challenging. “Sometimes people say they had the most challenging experience of their entire lives. It can be harrowing but sometimes those difficult, challenging experiences are the therapy, they are the medicine,” said Barrett. 

6. Psychedelic therapy is not a “one and done” solution. The treatment involves careful screening of patients, preparation and psychotherapy sessions before and after the drug sessions, trained therapists present during the drug session, and integration afterward.  

7. Despite the current lack of legalization, the investment in psychedelics is booming. Mix shared that the industry has raised $3.6 billion so far and is projected to reach $13 billion by 2031. The industry now includes biotech companies, clinics, training programs, tech, healthcare benefits companies, and nonprofits.  

8. Advocacy efforts in favor of the further study and application of psychedelics must stay focused on science. Lavasani explained how the movement for cannabis legalization, by comparison, holds important lessons for this industry. In the case of cannabis, an emphasis on recreational use instead of data on promising health impacts has led to a political standstill as lawmakers retreat to their partisan positions. By focusing simply on data and therapeutic potential, psychedelic drugs may be able to avoid a similar fate.  

This conversation is part of HBHI’s Conversations on the Business of Health, a series of one-hour webinars that engage leaders in business and academia to explore questions such as: 

• Should companies invest in their employees’ health? 

• Are companies responsible for the health consequences of their products? 

• Will artificial intelligence actually advance health? 

• How can business offer healthcare in novel settings? 

Moderated by faculty members and jointly hosted by the Bloomberg School of Public Health, the Carey Business School, the School of Nursing, and the School of Medicine, these events are open to all. Learn more here.