AbbVie’s purchase of Gilgamesh Pharmaceuticals’ psychedelic compound bretisilocin for up to $1.2 billion last month marked the first time a traditional pharma company has bought an investigational psychedelic drug. The deal suggests pharma is getting more comfortable with psychedelic drugs, despite the Food and Drug Administration’s rejection of MDMA last year.
Following the success of Janssen’s depression treatment Spravato, which had $780 million in sales in the first three quarters of 2024 and is currently the only legal psychedelic psychiatric treatment, other pharma companies are increasingly eyeing the space for potential future deals, according to biotech executives and consultants. “It’s clearly validation for our sector,” said Kabir Nath, chief executive of Compass Pathways, which is developing psilocybin to treat depression.
Psychedelics present both a risk and an opportunity, especially for companies with an interest in psychiatry. Currently there are a handful of biotechs with psychedelic compounds in Phase 2 or later trials and, similarly, a handful of larger pharmaceutical companies that are circling the field. “There’s a huge amount of interest coming in suddenly from pharma,” said Josh Hardman, founder of the media and consulting firm Psychedelic Alpha. “We’ve seen a huge uptick in the last six months of larger pharma companies joining the mailing list, taking out paid subscriptions.”
This article is exclusive to STAT+ subscribers
Unlock this article — plus daily coverage and analysis of the biotech sector — by subscribing to STAT+.
Already have an account? Log in
To read the rest of this story subscribe to STAT+.
