Story
Psychedelics Market for Depression to Reach $11 Billion by 2035, Wells Fargo Projects
Summary
A new Wells Fargo report forecasts the branded psychedelics market for depression could grow to $11 billion by 2035, citing significant physician interest and a pipeline of drugs with improved dosing schedules over current treatments.
The market for branded psychedelic treatments for depression is projected to reach $11 billion by 2035, according to a new research report from Wells Fargo. The bank's analysis suggests significant growth potential driven by increasing physician adoption and the development of new therapies with improved efficacy and dosing schedules.
Market Projections and Physician Outlook
Wells Fargo's forecast is underpinned by a survey of 20 physicians who collectively treat more than 7,500 patients with major depressive disorder and treatment-resistant depression (TRD). The survey revealed a willingness among these specialists to prescribe psychedelic treatments to approximately 23% of their TRD patients.
Based on these findings, the bank projects that branded psychedelics will eventually achieve a 14% market penetration in the U.S. TRD population. This would represent a substantial increase from the current market share of approximately 2%, held by the existing treatment Spravato.
The Current Landscape
The report notes that Spravato, the leading psychedelic-based therapy currently on the market, is generating sales that annualize at more than $2 billion. Its adoption initially faced headwinds from skepticism over clinical data and strict regulatory requirements mandating certified centers and two-hour patient monitoring periods.
AdWells Fargo identified Spravato's moderate efficacy and the need for maintenance dosing every two weeks as key limitations. These factors create a significant opportunity for new entrants developing therapies that may offer more durable effects and less frequent administration.
What to Watch in the Pipeline
The development pipeline is a key factor in the growth forecast, as most new psychedelics are expected to require fewer annual doses than Spravato. In its report, Wells Fargo highlighted several companies in the sector, including CMPS, DFTX, GHRS, and HELP.
The bank expressed a positive view on DFTX and HELP ahead of upcoming Phase 3 data, signaling potential catalysts for investors monitoring the emerging therapeutic category.
Read next
More on Stocks
White House Blocks CNN from Air Force One Press Pool, Washington Post Reports
The White House has reportedly denied CNN a spot on Air Force One for President Donald Trump's upcoming trip to Tennessee, according to The Washington Post. The move marks a significant development in the administration's contentious relationship with the news network.
Morgan Stanley Public Finance Co-Head Zach Solomon Departs for TD Securities
Zach Solomon, co-head of public finance investment banking at Morgan Stanley, has joined TD Securities amid the Canadian bank's expansion in the U.S. municipal bond market. The move follows the recent Chapter 11 bankruptcy filing of a key client, Brightline.
OpenAI Models Accessed Public Data From SEC, Census Bureau Websites, Bloomberg Reports
OpenAI's AI models reportedly interacted with publicly available data on U.S. government websites, including the SEC and Census Bureau, prompting the company to launch a review of the activity.
Citigroup Targets Over $3 Billion Banamex IPO for January, Bloomberg Reports
Citigroup is reportedly preparing for an initial public offering of its Mexican retail unit, Banamex, that could raise over $3 billion and is targeted for January. The move represents a major step in the bank's multi-year strategy to exit international consumer banking operations.