The Race to Commercialize the World’s Most Powerful Psychedelic | WSJ | The Wall Street Journal

The Gist

AtiolBeckley and other biotech firms are racing to commercialize 5-MeO-DMT, a powerful psychedelic derived from toad venom, driven by surging market interest and federal backing.

Quick Overview

Biotech companies are investing heavily in developing synthesized 5-MeO-DMT and its analogues into FDA-approved treatments for major depressive disorder and treatment-resistant depression. With the psychedelic therapies market projected to reach 10 billion dollars by 2034, companies like AtaiBeckley and GH Research are advancing through clinical trials. Meanwhile, U.S. government officials, including HHS Deputy General Counsel Matt Zorn, are actively working to accelerate research and approvals.

Key Points: 5-MeO-DMT is secreted from the glands of the Colorado River toad and provides a profound psychedelic experience lasting about 30 minutes. Atai Life Sciences and Beckley Psytech received U.S. FDA Breakthrough Therapy Designation for BPL-003, an intranasal formulation of 5-MeO-DMT. The projected market for psychedelic therapies is expected to reach 10 billion dollars by 2034, driven by growing biotech investment. Clinics like The Mission Within in Tijuana, Mexico, currently treat U.S. military veterans with 5-MeO-DMT for severe PTSD and depression. Dr. David Lankri and researchers at Columbia University study the pharmacology of 5-MeO-DMT, noting it triggers two distinct serotonin receptors in the brain. Johnson and Johnson's Spravato, an esketamine nasal spray, paved the way as the first commercially available FDA-approved psychedelic therapy. President Trump signed an executive order in April 2026 to expand access and research into psychedelic therapies, accelerating review processes.

Context: Veterans and patients suffering from severe treatment-resistant mental health disorders often find conventional treatments like SSRIs ineffective. Many travel to clinics in Mexico to access psychedelic therapies like 5-MeO-DMT, prompting biotech companies and government agencies to pursue legal commercialization in the United States.