Wells Fargo sees psychedelics market reaching $11B by 2035

Investing.com -- Wells Fargo released a report on psychedelics treatments, forecasting the branded psychedelics category in depression could reach $11 billion by 2035.

The bank's analysis covers several companies including CMPS, DFTX, GHRS, and HELP, with Wells Fargo expressing a positive view ahead of Phase 3 data for DFTX and HELP.

Spravato, currently on the market, is generating sales that annualize at more than $2 billion. The treatment faced a slow start due to initial skepticism about clinical data and REMS requirements that mandated certified centers and two-hour patient monitoring periods. The COVID-19 pandemic also affected adoption rates.

Many ketamine clinics that previously offered off-label IV ketamine for depression treatment have since adapted to accommodate Spravato, which Wells Fargo believes contributed to its commercial growth.

The bank identified two main limitations of Spravato: moderate efficacy and limited durability, which requires maintenance dosing every two weeks. Most new psychedelics in development are expected to require fewer doses per year compared to Spravato.

Wells Fargo conducted a survey of 20 physicians who collectively treat more than 7,500 patients with major depressive disorder and treatment-resistant depression. The survey indicated willingness to treat approximately 23% of treatment-resistant depression patients with psychedelic treatments.

The bank projects branded psychedelics, including Spravato, will reach 14% penetration of the U.S. treatment-resistant depression population. This represents growth from Spravato's current market share of approximately 2%.

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