Morgan Stanley Reports on Psychedelics: A Potential Long-Term Investment Portfolio for an Emerging Market


Global Counterpoint is by Morgan Stanley MRS Investment Management Division tasked with understanding new or “disruptive” market opportunities that have “the potential to trigger far-reaching consequences” and therefore are likely a solid, long-term investment, and this report focuses on psychedelics for purposes medical.

As first shared by Psychedelic Alphathe document provides a concise but solid overview of what psychedelics are and what their mechanism of action is, their research history, and which compounds are currently in advanced clinical trials.

The report further explains the team’s account of why psychedelics are disruptivewhat unmet medical needs they aim to help address, potential markets as well as current and future challenges.

Morgan Stanley’s report points out that “beyond mental and pain-related illnesses, psychedelics have the potential to treat any disease where new neural pathways could improve functioning.”

An interesting point is made regarding psychedelics and traditional medicine. “While there are multiple pharmacological and non-pharmacological options for treating mental illnesses, there have been no truly new psychiatric drug treatments since the 1980s, when Prozac and other selective drug reuptake inhibitors serotonin (SSRI), the most common type of antidepressant, came to market.”

Moreover, facing the fact that SSRIs “only help about 25% of patients who take them” makes psychedelic-assisted therapy promising in that it “can change a patient’s fundamental outlook over the course of one to a few sessions”.

However, the authors point out the need for “available and scalable” infrastructure and clinician support so that treatment is successful in alleviating the suffering of mental health disorders. It specifically highlights the adequacy of the therapists’ training and environment, as well as the general “costs and complexity” involved in this type of treatment.

Although the information is not new to some, it should be noted that this is the second review on psychedelics launched by a leader in financial services in recent days. This further confirms the growing optimistic trends towards the overall psychedelic market.

Photo courtesy of Geralt on Pixabay.

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