Dustin Robinson wants investors to know the global race to commercialize psychedelic drugs has arrived.
That's why the attorney, a founding partner of Fort Lauderdale law firm Mr. Cannabis Law and the nonprofit organization Mr. Psychedelic Law, teamed up with private equity investor Robert Velarde to start the venture capital firm Iter Investments.
The firm is deploying capital in businesses operating in and around the burgeoning psychedelics industry, with a focus on ventures that use substances like psilocybin (the hallucinogenic substance found in "magic mushrooms"), MDMA and ketamine to treat mental health disorders.
"We're in a mental health crisis and a lot of the pharmaceuticals available just aren't very effective," Robinson said. "Now is the opportunity for investors to get in early on emerging [psychedelic] drug compounds and ride the wave up."
Medical research suggests psychedelic drugs can offer users far more than a "good trip."
These days, substances like ketamine, an anesthetic and party drug, are being used to treat mental illness and substance abuse addictions in conjunction with therapy.
In 2019, the U.S. Food and Drug Administration approved a ketamine nasal spray for patients with major depressive disorder after determining the treatment safe and effective. The agency also granted at least two breakthrough therapy designations for psilocybin-based drugs for the treatment of acute depression, a process that expedites their development and review.
MDMA, also called ecstasy, is also inching closer to approval after it showed promise in a late-stage clinical trial for patients with severe post-traumatic stress disorder.
"This isn't just hippies going out there telling people that psychedelics are good for you because they're 'mind-expanding'. This is the FDA looking at them as breakthrough therapies," Robinson said.
Iter Investments aims to invest in a range of emerging companies in the psychedelic sector, particularly pharmaceutical drug development and biotech ventures. Robinson said the firm is eyeing some startups headquartered in Canada, one of the few countries that permits the legal consumption of psilocybin mushrooms for people with depression and other mental illnesses.
The goal is to bridge the funding gap between psychedelic drug research and commercialization to support the growth of the firm's portfolio companies.
Several psychedelic treatment startups are already making waves, Robinson said. He pointed to Canada-based Wesana Health, a life sciences company that is exploring psilocybin mushrooms as a treatment for traumatic brain injuries and related conditions.
Last year, Berlin-based ATAI Life Sciences, a biopharmaceutical firm developing psychedelic drugs to treat mental health disorders, received a boost after billionaire tech investor Peter Thiel led a $125 million funding round for the company.
South Florida companies are already entering the psychedelic health care market. In early June, Miami-based telemedicine startup NUE Life Health raised a $3.3 million seed round for its at-home ketamine therapy service. The company currently operates in Florida, California and Texas.
Iter Investments' advisory board includes psychiatric and medical professionals, including Psychiatric Lead Dr. Scott Fisher, the lead facilitator in a FDA phase two clinical trial assessing the effectiveness of psilocybin for major depressive disorder; Clinical Lead Dr. Michelle Weiner, whose practice includes ketamine-assisted therapy; and FDA Lead Edgar Asebey, an attorney with decades of experience in federal pharmaceutical and biotech regulation.
Last November, Oregon became the first U.S. state to legalize psilocybin for therapeutic purposes. Robinson hopes Florida will follow suit.
He's doing his part to support the cause through his organization Mr. Psychedelic Law, a nonprofit focused on driving legal reform for psychedelics through medical and scientific research. Robinson and his team drafted a bill that seeks to legalize psilocybin-assisted therapy, a measure introduced to the Florida Legislature by state Rep. Michael Grieco during the last session. The bill didn't pass, but Robinson said it sparked a conversation among groups who previously knew almost nothing about psychedelic drugs.
Any attempt to legalize psychedelic use in Florida is bound to be met with resistance.
Although the state legalized medical cannabis, the move was widely opposed by the Legislature and only passed after voters supported legalization in a 2016 ballot initiative. In April, the Florida Supreme Court shot down language in a proposed amendment to legalize recreational cannabis, damaging its chances of getting on the ballot in 2022.
Psychedelic reform could be even more onerous. While there have been some promising studies, the long-term impacts of using substances like psilocybin, ketamine and MDMA as part of a mental health treatment plan are still unknown. And like cannabis, those compounds are still illegal under federal law.
Despite those challenges, Robinson is hopeful that additional medical research will persuade psychedelic naysayers.
"Almost everyone knows someone impacted by mental and behavioral health issues, and there are a good amount of people who have been positively impacted by an experience with psychedelics, even if they don't openly discuss it," Robinson said.
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