Rising tides lift all ships: What attracts drug developers to the UK’s psychedelic ecosystem?
Descartes described the brain as a hydraulic pump propelling spirits throughout the body while Freud used the steam engine to explain the workings of the mind. According to his view, pressure that built up in the subconsciousness had to be released to relieve negative mental states. As the technology of the day moved on, we started thinking about the brain as a computer to refer to its information processing capabilities.
Disciplines like to borrow concepts from each other. The concept of innovation “ecosystems”, as borrowed from ecology, emerged in the early 2000s to meet the demands of innovation and development processes that are non-linear and network-based. Unlike the national innovation systems that focus on the flow of information and technology from public research institutions to private enterprises, the concept of innovation ecosystems places the emphasis on the dynamic, agile and collaborative structures that enjoy self-governance.
What attracts people to the idea of creating an “ecosystem” is its self-organising, self-governing and synergistic qualities. Such environments are conducive to the generation of ideas and their implementation in the form of new products, services and processes in the global marketplace.
With the heritage of psychedelic research, policymakers’ appetite for innovation and a culture of risk-taking among investors, the emergence of a psychedelic ecosystem in the UK was inevitable. Now, networks of sustainable linkages between individuals and organisations are being established throughout the UK based on a shared vision of providing access to psychedelic treatments through the medical pathway.
*This is not a comprehensive list.
A habitat for drug developers
This psychedelic ecosystem that emerged only a few years ago has been maturing, and learning along the way, to provide a flourishing environment for psychedelic businesses to thrive. We see drug developers, regulators, universities, patient groups and public and private funders all contributing to the functioning of the ecosystem and forming collaborative relationships with each other.
Some of the bigger players in the sector are based in the UK including Compass Pathways, Small Pharma, Beckley Psytech and Awakn. The UK also attracts businesses from abroad with companies such as DemeRx, Biomind Labs and Albert Labs carrying out their trials here. Octarine Bio, a Danish biotech company producing psilocybin through fermentation that picked the UK to run their trails, said:
“It’s not surprising that the psychedelics industry is advancing faster in the UK than in mainland Europe. It was also encouraging to see that other psychedelics companies are operating in the UK or are planning trials there, it gives us the confidence that the right infrastructure will be in place to see our trials through successfully.”
The regulatory bodies in the UK are doing their utmost to facilitate the set-up of studies in record time and boost innovation to restore the UK’s global leadership in clinical trials. Most recently, Health Research Authority introduced changes to fast-track ethics review as part of their ongoing work to accelerate research. As regulators are familiar with psychedelic drugs now, they are also open to innovative trial designs and willing to support companies by establishing closer links with relevant authorities.
When Biomind Labs’ CEO Alejandro Antalich explained to PSYCH why they relocated to the UK, he echoed Jessica’s words:
“The MHRA, similar to the FDA, had fast-tracked studies with novel drugs and when you summarise all the benefits the UK offers a life sciences company like ours, they become tremendous opportunities.”
He also added:
‘When we looked at the UK’s ecosystem we analysed different places within the Golden Triangle – London, Oxford and Cambridge. We have several projects with Cambridge University, so setting up there made sense, but we are also in conversations with Queen’s University and King’s College London, which means our collaborations could span the whole of the United Kingdom.”
Reciprocal value creation
Universities such as Imperial, King’s and University College London have long been conducting research with psychedelic compounds. Young researchers coming out of these universities and the academics who act as a bridge between academia and businesses are valuable sources for companies’ R&D activities. Individuals such as Dr David Erritzoe advise multiple companies facilitating faster knowledge transfer and promoting sensible innovation.
Even patient groups are being established and already feeding into the design and delivery of clinical trials, ensuring that psychedelic medicine develops in a patient-centric way. For instance, the Psychedelic Participant Advocacy Network (PsyPAN) provides consultancy and advocacy services to help create more effective treatment models and maximise positive outcomes through the lived experiences of participants.
Non-psychedelic companies are plugging the gaps in the ecosystem in areas where psychedelic specialism isn’t required. We see companies like Veramed and Invicro providing clinical data management and imaging services respectively.
Companies such as Clerkenwell Health and Wavepaths provide services to support the infrastructure of the ecosystem. For instance, with its psychedelic specialist site, CRO services and regulatory advisory, Clerkenwell Health focuses on accelerating drug development while Wavepaths optimises psychotherapy through its music platform.
The economic context to catalyse innovation and growth is provided by numerous venture capitals and angels such as Neo Kuma and Psych Capital, early-stage investment firms focused on the UK and Europe, and increasingly by public entities such as Innovate UK. Awakn recently secured funding from Innovate UK to identify the most cost-effective route to market in the UK and the US for their lead program on ketamine-assisted therapy for treating alcohol use disorders.
Commenting on the financial opportunities available, Biomind Labs’ CEO Alejandro said:
“Listing in the UK is vital as not only will it broaden our exposure to capital funds and retail investors, but also because I believe the UK will become a centre for psychedelic research. I see immense value in having the UK investor community close to our portfolio of novel drugs and pipeline of clinical trials.”
Looking ahead
The psychedelic ecosystem in the UK is an enabling environment for the co-creation and introduction of psychedelic innovations. It’s already attracting many international players. However, restrictions on the research and medical use of psychedelics might push businesses away leading to lost opportunities.
If the UK wants to be a world leader in innovative mental health and CNS treatments, it needs to focus on strengthening its ties with other jurisdictions as well as the links between stakeholders. By looking into good regulatory practices in other countries and keeping a cooperative relationship with businesses, the UK can foster the growth of its psychedelic ecosystem.
With psychedelics progressing through the clinical pathway, stakeholders in the ecosystem shouldn’t only focus on drug development but also on the delivery of psychedelic treatments. For this, actors and institutions involved in mental healthcare should be more actively engaged and the importance of the public as a stakeholder shouldn’t be overlooked.
Despite having some learning to do, the UK’s psychedelic ecosystem is well ahead of the development curve compared to the global average. But how do we scale a local ecosystem to have a global impact? And how do we ensure that local innovations can be applied globally?
A good start is to have global actors involved in the UK ecosystem and to connect local ecosystems of different countries with each other. With the ecosystem in the UK yet to reach full maturity, now is a good time for companies to be part of this ecosystem and establish themselves as key players to make the most of future opportunities.
