Chris’ note: This week at the Cut, we’ve been shining the spotlight on Mike “Zappy” Zapolin. He’s a former Wall Street VP and the newest member of Palm Beach Research Group.
He brings his advanced insight into cutting-edge products and investment opportunities in the psychedelics space… which he says is on the cusp of a multitrillion-dollar revolution.
You may be wondering, aren’t psychedelics dangerous? And illegal? As Zappy explains below, that reputation is all part of a Big Pharma conspiracy and government propaganda… But the tide is finally turning…
In 1971, President Richard Nixon signed the Controlled Substances Act, which banned the use of psychedelics.
At the time, the pharmaceutical industry was about to launch a new slate of antidepressant drugs.
Big Pharma knew these drugs would be a moneymaking machine because patients had to take them every day for the rest of their lives.
So the pharmaceutical industry pressured the government to make psychedelic compounds – which can have antidepressant effects – illegal… then went on a campaign to destroy the indigenous cultures behind many of these alternative medicines.
The government propaganda campaign against psychedelics became ingrained in American society. And it led to the misunderstanding and taboo of these compounds that persist today.
Thanks to the greed and influence of Big Pharma, many people who suffered from mental illnesses haven’t been able to legally access the treatment options they deserve for decades.
This injustice restricted testing of these compounds, setting back years of research. Scientists had to wade through a sea of red tape to study the benefits of psychedelic treatments. They risked jail time if they ran afoul of state or federal laws.
History will look back on this 50-plus-year prohibition on psychedelic compounds as one of the greatest insults to human evolution and mental health.
Things finally started to shift with the advent of the internet and the democratization of information. People have been empowered to do their own research.
Society realized it’s not necessarily in the financial interest of pharmaceutical companies to cure disease… but rather, just to treat the symptoms.
So a group of small innovators emerged to start producing plant-based medicines to treat mental disorders at their roots.
Now, during the crisis and aftereffects of COVID-19, there’s been a renaissance in how society thinks about the opportunity for these powerful therapeutic compounds.
Ironically, the very same pharmaceutical companies that once suppressed psychedelics are now coveting them and targeting them for acquisition…
And as interest ramps up, we believe we’re on the cusp of the next multitrillion-dollar market.
Now, it’s true psychedelics can be dangerous if abused. But the same applies to all drugs.
For example, Advil is one of the most dangerous drugs in America – if you take too much of it. And legal substances like cigarettes and alcohol kill millions of people each year because users abuse them.
When it comes to the medical use of drugs, we shouldn’t necessarily frame the argument around what’s legal or illegal… but how the government classifies a drug.
Let me explain…
Today, the government classifies psychedelics as Schedule I, which includes marijuana and MDMA (also known as the party drug “ecstasy”).
According to the government, these drugs have high potential for abuse and no currently accepted medical use in the U.S. As I’ll show you in a moment, nothing can be further from the truth for psychedelics.
I believe Schedule III is the category psychedelics belong in and will eventually be reclassified as.
Drugs in this category have accepted medical use… but may lead to moderate or low physical dependence or high psychological dependence.
Schedule III classification would put psychedelic substances in the same category as drugs including Tylenol with codeine, anabolic steroids, and Vicodin. The government would still regulate them… but would also recognize them for their medical benefits.
Here’s why I believe Congress will eventually reschedule psychedelics as Schedule III…
Research shows psychedelic compounds can treat some of the most severe and expensive medical conditions in the world. And they do it better, faster, and at a fraction of the cost of traditional medicines.
In 2017, the FDA granted “breakthrough therapy” designation to MDMA-assisted psychotherapy for PTSD. The designation allows companies to speed up development and review of drugs intended to treat serious conditions. Phase 3 clinical trials should be complete this year, meaning the FDA could approve the treatment as early as 2022.
In 2018, the FDA also granted “breakthrough therapy” designation to Compass Pathways (CMPS). The company uses psilocybin (a psychedelic compound naturally found in fungi) for treatment-resistant depression.
In 2019, the FDA gave the same designation to the Usona Institute, which uses psilocybin to treat major depressive disorder.
Pharma giant Johnson & Johnson (JNJ) recently released Spravato, its own FDA-approved drug to treat people suffering from depression. It’s a fast-acting nasal spray that uses a form of the psychedelic ketamine, the so-called party drug “Special K.”
In 2019, the Department of Veterans Affairs approved ketamine for the treatment of post-traumatic stress disorder (PTSD).
This last development is particularly impactful. Right now, retired and active-duty military personnel take their own lives a staggering 20.6 times per day. This approval could help lower that rate and save thousands of lives.
Former VA Secretary Robert Wilkie hailed this milestone:
We’re pleased to be able to expand options for veterans with depression who have not responded to other treatments. It reflects our commitment to seek new ways to provide the best health care available for our nation’s veterans.
And there’s news of adoption on the regulation front, too. In May 2021, the Texas Senate passed a bipartisan bill allowing a study on psilocybin therapy to treat PTSD in veterans.
So we’re moving toward broader acceptance of psychedelic medicines and therapies. It’s only a matter of time before they become widespread.
Psychedelics are helping solve a global healthcare crisis that costs society an estimated $3 trillion in health expenses and lost productivity.
That’s why Palm Beach Daily editor Teeka Tiwari calls this trend his next “trillion-dollar trade.” And you have a chance to get in early… and position yourself in the right companies.
You see, individual investors have an early advantage over institutions. That’s because institutions have to wait until stocks are large enough to trade on the world’s biggest exchanges.
Geting in before the institutions puts you way ahead as these companies grow and money floods into this space.
That’s why I joined Teeka and Palm Beach Research Group.
We believe certain stocks in this burgeoning market have the potential to beat a century’s worth of stock market gains in the next 18 months.
By coupling my expertise in the psychedelic space with my background on Wall Street, it’s been easy for me to analyze and select the best-of-breed companies.
And now that I’ve joined Teeka, we plan to bring these life-changing ideas to Main Street. You don’t want to miss out. So click here to watch the free replay of our presentation.