Billionaire investors such as Peter Thiel and Christian Angermayer back psychedelic developers, and Big Pharma is following. Last week Eli Lilly agreed to buy Thiel‑backed Atai Beckley for up to $3.8bn; Japan’s Otsuka bought Transcend Therapeutics for $700mn and AbbVie acquired Gilgamesh’s lead asset for up to $1.2bn.

After the FDA rejected an MDMA therapy in 2024, valuations are rebounding. Definium Therapeutics’ LSD‑based tablet for anxiety and depression rose almost fivefold to a $5.5bn market cap, and its phase‑3 trial showed positive results. Compass Pathways also reported late‑stage data for a psilocybin formulation with longer‑lasting antidepressant effects, earning accelerated FDA review.

Regulation is easing: the Trump administration signed an executive order to speed psychedelic research. J&J’s ketamine‑derived Spravato generated $1.7bn in sales last year, up 60%. Analysts now project a $6bn annual opportunity for Eli Lilly if 5% of the 4mn treatment‑resistant depression patients in the US by 2036 receive its psychedelics, a fraction of the $85bn expected from weight‑loss drugs.

Scaling remains hard because each session needs trained staff, dedicated rooms, and hours of supervision. Still, psychedelics address a major unmet need, moving from counterculture to Big Pharma’s cabinet.