Trump's executive order ignited the psychedelic drug race: a company quickly raised $5 million in financing, and institutional funds began "phone bombing."

An executive order signed by US President Trump to accelerate the development of psychedelic drugs is sparking expectations among related pharmaceutical companies to attract more capital. However, researchers warn that the emergence of true new therapies is still a long way off. Nine company executives and investors interviewed by the media expressed optimism that the executive order is expected to shorten the administrative review time and improve coordination between the FDA and the DEA. Several companies stated that new funding is currently only a hope. However, Enveric Biosciences CEO Joseph Tucker revealed that the company has successfully raised $5 million in funding after news of the Trump executive order. Optimi Health CEO Dane Stevens stated that the company received a large number of inquiry calls almost immediately after the executive order was issued, as potential investors want to further understand this field. "Once there is action at the executive order level, the phone rings constantly," he said. On the research side, seven individuals involved in the study of the medical value of psychedelic drugs pointed out that any new therapy requires expensive and time-consuming research, and most psychedelic drugs are still in the early stages of development, with a long way to go before they can be brought to market. University of California, Berkeley professor Gurtler Duran stated, "I am cautiously optimistic, but not ready to celebrate yet." Her research focuses on how psychedelic drugs can reopen a "critical period" - a time window during which brain plasticity is enhanced, aiding in relearning behavior and repairing trauma. When the FDA rejected the approval of Lykos Therapeutics' MDMA-assisted therapy for PTSD in 2024, it emphasized the slow progress of development and the difficulty in trial design. It is worth noting that in April of this year, the FDA granted fast-track designation to three companies researching psychedelic drugs for the treatment of mental disorders - Compass Pathways, Usona Institute, and Transcend Therapeutics, signaling a shift in regulatory attitudes. Regarding investments, Noetic Fund co-founder Saad Shah stated that historically, this field has mainly attracted funds from family offices and high-net-worth individuals. He hopes that the executive order will attract institutional investors such as sovereign wealth funds and public pension funds by reducing regulatory uncertainty, as this indicates that the industry has gained credible government endorsement. Noetic Fund has invested in several psychedelic drug companies including Compass Pathways, Definium Therapeutics, and AtaiBeckley. Sri Teja Mullapudi, Noetic's Head of Science, pointed out that the faster intervention by the FDA could save clinical-stage companies "millions of dollars" by compressing the review period from 10 to 12 months to just 1 to 2 months. However, investors believe that the benefits are not evenly distributed. Late-stage companies with breakthrough therapy designation or key data are most likely to benefit first from fast-track or priority review vouchers. For early-stage companies, PsyMed Ventures co-founder Matthias Serelinsky said that the impact is "somewhat vague", but generally positive - because more investors may now see psychedelic drugs as an investable track. On the company side, Definium Therapeutics CEO Robert Baro stated that a faster regulatory process can increase efficiency and reduce waste. The company is developing a therapy for generalized anxiety disorder based on LSD. Of particular note, the executive order directs the DEA to initiate the scheduling of controlled substances after receiving late-stage clinical data, without waiting for FDA approval - this will significantly speed up the process. The DEA classifies drugs, determining the level of control and whether they can be prescribed. US authorities have recently taken steps to reclassify marijuana to lower the barriers to research and investment. AtaiBeckley CEO Srinivas Rao stated that the executive order emphasizes improving communication between the FDA and the DEA on clinical trial protocols and site approval, which may shorten the development time by "several quarters". The company is developing a nasal 5-MeO-DMT formulation BPL-003 for treatment-resistant depression. However, there are concerns about the payment side, as funding for related therapies has historically been difficult to obtain due to the government's opposition to psychedelic drugs. The removal of regulatory barriers has opened a door for more independent research. Serelinsky of PsyMed pointed out that the executive order may accelerate the review process, but does not clearly address the reimbursement obstacles for psychedelic therapy. "Who will foot the bill? This is an unresolved issue that the executive order does not provide a complete answer to." Clinical experts caution that enthusiasm should not overshadow risks, especially with ibogaine - a powerful psychedelic drug derived from the African iboga plant, which has been prominently featured in the Trump administration's push. Veteran groups and addiction treatment advocates promote it as a potential therapy for PTSD and substance use disorders, but companies are still far from bringing ibogaine-based therapies to market, with most research still in the preclinical or early development stages.