EXCLUSIVE: Why Kevin O'Leary Of 'Shark Tank' Says Public Psychedelics Companies Will Need To Merge

The market opportunity for legal psychedelics is in the hundreds of billions of dollars, “Shark Tank” judge Kevin O’Leary told the inaugural Benzinga Psychedelics Capital Conference on Tuesday.

Investors never get the opportunity to position themselves in a brand new sector, “Mr. Wonderful” told Benzinga founder and CEO Jason Raznick.

“This sector is medicine: FDA-approved, non-recreational use,” O’Leary said, speaking of psychedelics as a mental health treatment. “It’s a once-in-a-lifetime opportunity.”

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O’Leary’s Psychedelic Stock Picks: Legal psychedelics companies have collectively raised $2 billion and are in Phase 2 trials, said O’Leary.

He told the Benzinga conference at the Fontainebleau in Miami Beach that he first entered the space about three years ago.

O’Leary said he indexes the companies based on their focus on psilocybin, LSD and derivative molecules.

“I try and mitigate my risk based on trials.”

The “Shark Tank” judge said he’s overweight Mind Medicine (MindMed) Inc MNMD and has exposure to Compass Pathways PLC CMPS and ATAI Life Sciences NV ATAI.

“The minute one of them gets to Stage 3 [trials], you’re going to lift all the tides.”

Does Psychedelics Sector Need M&A? Raznick asked O’Leary whether big pharmaceutical companies are in psychedelics yet.

“I think Big Pharma’s starting to look at it,” O’Leary replied — and predicted Atai, Compass and MindMed will have to merge.

“They each need another $200 million by the time they get this to medicine,” he said.

Each segment of the market — LSD, microdosing, psilocybin, alternative molecules — is trying to address different afflictions, he said.

Another market exists for counseling, where psychedelics are used with a counselor, O’Leary said.

“I’m far more constructive on psychedelics for institutional capital than I am for cannabis.”

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Benzinga CEO Jason Raznick, left, and "Shark Tank" judge Kevin O'Leary at the Benzinga Psychedelics Capital Conference Tuesday at the Fontainebleau in Miami Beach, Florida. Photo by Dez Smith.