Bulletin
Investor Alert

Dec. 3, 2020, 9:02 a.m. EST

How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Constellation Brands Inc. Cl A (STZ)
  • X
    Molson Coors Beverage Co. Cl B (TAP)
  • X
    Altria Group Inc. (MO)

or Cancel Already have a watchlist? Log In

Dec 03, 2020 (Financial News Media via COMTEX) -- FN Media Group Presents GlobalInvestmentDaily.com Market Commentary

London - December 3, 2020 – 2021 could be a big year for this soon-to-be $16-trillion biotech opportunity. More importantly, it could be a big year for companies pioneering a new form of therapy that could effectively treat the world's #1 disability. It's a disability that's costing the economy $1 trillion in lost production every single year. In fact, the revolutionary treatment could be at our doorstep by 2021. And the next few months are critical. Mentioned in today's commentary includes: Constellation Brands, Inc. /zigman2/quotes/207737284/composite STZ +2.78% , Molson Coors Beverage Company /zigman2/quotes/205165133/composite TAP +1.70% , Altria Group, Inc. /zigman2/quotes/208895754/composite MO +1.94% , GW Pharmaceuticals plc /zigman2/quotes/209686240/composite GWPH +0.36% , Curaleaf Holdings, Inc. (otcqx:CURLF).

Why? Soon, global spending on mental healthcare will hit $16 trillion, and researchers say it has huge implications for people with...

  • Depression and anxiety

  • PTSD

  • Addiction

  • And many other disabling diseases...

And one company, Lobe Sciences (LOBE; GTSIF), is on the cutting edge of this new 'transformational medicine."

Breakthrough Therapy Backed By Science

Working in partnership with the University of Miami, Lobe Sciences is on the leading edge of this biotech breakthrough.

Lobe points to a Johns Hopkins studyof the efficacy of these compounds for treatment of depression and anxiety (a market to grow to $18.9 billion by 2026) that concluded that psilocybin eased depression and anxiety in patients with life-threatening cancer.

But that was back in 2016. Since, a collection of new studies has taken this far beyond cancer patients and into the general population suffering from widespread depression, anxiety and PTSD. According to Alan Davis, the author of one such 2020 study and a faculty member at Johns Hopkins University and Ohio State University, psilocybin's effect was "more than four times greater".

Smart Money Is Going All In

Tim Ferriss, angel investor extraordinaire funded Johns Hopkins' psychedelic research center with over $2 million. Ferriss says this is the world's proof-of-concept demonstration–the Silicon Valley of psychedelics.

Brad Loncar, lead biotech investor at Loncar Investments, pinpointed the "ultimate sign for investors" when big pharma got its first approval for a psychedelic-based anti-depressant in the Spring of 2019.

Multi-billionaire and PayPal co-founder Peter Thiel has put big money into this industry. Mike Novogratzhas also been selling the psychedelic space for years, lauding its massive investment merits.

Johnson & Johnson has been pouring money into R&D for years. When the FDA approvedSPRAVATO ketamine-like nasal spray as an antidepressant in 2019, it was a signal to investors that a new side of biotech was about to explode.

And Lobe is close to a transformational PTSD development, too. Among four others, it boasts a patent pending for a nasal mist transducer device that aims to offer a completely transformational approach to PTSD treatment. Development is already under way and the next news to come out may not just be transformational for PTSD--but for the company, as well.

The Multi-Billion Mental Health Market

As of 2020, more than 264 million people of all ages suffer from depression, according to the World Health Organization. Additionally, 1 in 13 people will develop PTSD at some point in their life. During the global pandemic... 1 in 20 women... and 1 in 50 men were newly diagnosed. Depression is now the No. 1 cause of disability in the world.

Considering many other mental disorders that psychedelic researchers are working to address, this could be a massive market opportunity. The functional mushroom market is expected to be worth more than $34 billion by 2024, according to data from Modor Intelligence. And Lobe Sciences (LOBE; GTSIF) is working hard to carve out its own piece of this market. Lobe already has five provisional patent applications on its therapy and methods… and the company's future looks bright.

The 'Brain Science' Boom

Just over the past year, Denver, Oakland, Santa Cruz, Ann Arbor, Oregon and Washington DC decriminalized psilocybin. The therapeutic potential of psychedelic drugs to treat the profound distress of Western society is becoming undeniable. Even the FDA thinks so.

Similar research has been shown to be 80% effective… compared to 20%-30% for big pharma treatments. More studies will be published soon... building on this base of research.

Surrounded by a patent moat and armed with revolutionary tech, Lobe Sciences (LOBE; GTSIF) is perfectly positioned to take advantage of the 2021's transformational science trend.

/zigman2/quotes/207737284/composite
US : U.S.: NYSE
$ 217.01
+5.86 +2.78%
Volume: 942,151
March 5, 2021 4:04p
P/E Ratio
23.59
Dividend Yield
1.38%
Market Cap
$42.07 billion
Rev. per Employee
$927,056
loading...
/zigman2/quotes/205165133/composite
US : U.S.: NYSE
$ 46.16
+0.77 +1.70%
Volume: 3.99M
March 5, 2021 4:04p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$10.01 billion
Rev. per Employee
$567,882
loading...
/zigman2/quotes/208895754/composite
US : U.S.: NYSE
$ 45.12
+0.86 +1.94%
Volume: 11.43M
March 5, 2021 4:03p
P/E Ratio
18.81
Dividend Yield
7.62%
Market Cap
$83.86 billion
Rev. per Employee
$2.94M
loading...
/zigman2/quotes/209686240/composite
US : U.S.: Nasdaq
$ 214.94
+0.77 +0.36%
Volume: 2.06M
March 5, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.74 billion
Rev. per Employee
$457,628
loading...
1 2
This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.