U.S. President Donald Trump's executive order to accelerate psychedelic drug development has raised hopes among companies developing the drugs that it could help attract more capital, but researchers cautioned that new treatments are still a long way off.
Nine executives and investors interviewed by Reuters said the order could shorten administrative timelines and improve coordination between the FDA and DEA.
Several companies said new funds are still just a hope, but Joseph Tucker, CEO of Enveric Biosciences, said the company raised $5 million when the news broke.
Dane Stevens, CEO of Optimi Health, said his company fielded many calls immediately after the order, as potential investors sought to better understand the sector.
But seven researchers noted that new treatments require costly, time-consuming research, and that most psychedelic drugs are still in early development.
"I'm cautiously optimistic, but I'm not throwing a funding party yet," said researcher Dölen from UC Berkeley.
The FDA highlighted slow timelines in its 2024 denial of Lykos' MDMA therapy. In April, it granted expedited review to three companies.
Sa'ad Shah of Noetic Fund hopes the order will bring in institutional investors like sovereign wealth funds.
Matias Serebrinsky of PsyMed Ventures said the effect is "more fuzzy" for early-stage companies but still positive.
Robert Barrow of Definium Therapeutics said faster DEA scheduling work could improve efficiency.
Srinivas Rao of AtaiBeckley noted that improved FDA-DEA communication could shave several quarters off development timelines.
Funding remains difficult due to the government's historical stance, some researchers said.
Serebrinsky said the order does not clarify insurance reimbursement hurdles.
Clinical experts warned of risks, especially around ibogaine.
