Business Plan

1. Products and Services

1.1 Business Proposition:
Psilocybin-assisted therapy, administered through a tea, in ‘clinical havens’

1.2 Background
Depression and Anxiety are the two most common mental health disorders worldwide (NICE, 2011)
but despite their prevalence, high-efficacy treatments are rarely developed. Treatment options for
these disorders in the UK currently consist of psychological therapies, antidepressants, and
antipsychotics. However, recent research has shown that, in the UK, only 1 in every 8 adults with
mental health disorders get any form of treatment (McManus et al., 2016). In addition to this, it is
estimated that 55% of individuals with depression (Thomas et al., 2013), and 30% of individuals
with anxiety (Bystritsky, 2006) meet the criteria for treatment-resistance; they show no
improvement in symptoms in response to these currently available treatment models. Treatment-
resistance to depression and anxiety carries an annual economic burden of $48billion and
$42billion, respectively. Developing a new and effective treatment against treatment-resistant
depression and anxiety would be highly favourable, both to the NHS and other health providers,
who have been struggling to cope with rising mental-health for decades.

Selective Serotonin Reuptake Inhibitors (SSRIs) are the most common treatment for depression and
anxiety in the UK (Cit NHS), however it is reported that 86% of patients taking these drugs report
unwanted side effects (Kelly et al., 2008). Furthermore, the NHS advises a minimum duration of 6
months for SSRI treatment, and it is not uncommon for patients to be receiving this treatment
indefinitely. This has resulted in a cost of £266.6million being spent on antidepressants each year
by the NHS (Guardian, 2017). Thus, developing a treatment for depression and anxiety that does
not require long-term use and has minimal side effects would also prove highly beneficial to the
NHS.

1.3 Psilocybin Tea

Our product comprises three key areas: psilocybin tea, a therapy programme, and clinical facilities.
Psilocybin, the active compound in ‘magic mushrooms’ has shown high efficacy in treating
treatment-resistant depression and anxiety, when used in conjunction with psychological therapy
(Carhart-Harris et al., 2017). This efficacy has been seen after only two doses and is shown to last a
minimum of 6 months, drastically reducing the duration patients would be medicated for.
Additionally, psilocybin carries no known side effects (Griffiths et al., 2006), unlike all other
pharmaceutical treatments for depression and anxiety currently available. There is currently no
product on the market that has shown the efficacy, short duration, and lack of side effects seen in
psilocybin-assisted therapy, putting our product in a unique and strong position.

Market research indicated that tea was the most popular consumption method for psilocybin, with
71% of survey respondents selecting it as their preference. Exact dosage of psilocybin within the tea
will be determined through clinical testing before the product is developed. The flavours offered
will also be determined through market research within the first year, however it is expected that
these will mimic common types of tea, such as green tea or rooibos flavour

Psilocybin will be sourced and manufactured overseas, in a country where the production and sale
of it is legal. Initial research indicates potential in the Germany, where it is legal to possess and
consume psilocybin and where laws regarding the sale of psilocybin products are no longer
enforced. Psilocybin tea is regularly manufactured and sold in this country.

1.4 Therapeutic Programmes

The second aspect of our product, a specially designed therapy programme, would take place
consecutively with our psilocybin-tea consumption. The exact nature of the programme will be
determined through clinical testing, and through selecting key aspects of the most commonly used
therapies, such as CBT, psychotherapy, and psychodynamic therapy. Over time, we aim to offer a
variation in types of therapy, each suited to the patient’s individual needs and conditions.

1.5 Clinical Havens

The final aspect of our product is the ‘clinical haven’. Psilocybin is not currently available as a
treatment method in the UK and is categorised as an illegal substance. We aim to circumvent this
legality issue through the use of ‘clinical havens’; specialised clinics where psilocybin can be
legally prescribed and consumed. Psychedelic scientists have already began lobbying the UK
government to encourage the legalisation of medicinal psilocybin. Psychocybin plans to increase
this pressure by hiring a team of experienced lawyers to speed up change in the law, and provide
psilocybin with a legal status akin to recently legalised CBD.

1.6 The Future of Psychocybin

Upon success of our depression and anxiety treatment programme, Psychocybin hopes to expand
our customer base, offering therapy for a wider range of disorders, including OCD, Phobias, and
Addiction. It is also expected that, once psilocybin-assisted therapy becomes more legally and
socially accepted, attitudes and the law towards psilocybin consumption will become more relaxed.
At this point, we plan on marketing our psilocybin-based tea to the general population, as a general
mental-wellness product, akin to CBD products which have boomed in popularity over the last
couple of years.

4. Market
4.1 Market Research
A survey, assessing prevalence of mental health, treatment efficacy and side effects, as well as
willingness to take psilocybin-products was sent out to a sample of the UK population. This market
research indicated that a large proportion of the population had been diagnosed with a mental health
condition, the majority of which were anxiety and depression. Very few of the respondents had
found their treatments to be effective, whilst the majority were never offered treatment. Of those
who received treatment, the majority reported experiencing side effects. The vast majority of
participants reported they would be comfortable taking medicinal-psilocybin, and a slightly smaller
majority reported they would be comfortable taking psilocybin for general mental-wellness.
4.2 Market Size and Trends
4.2.1 Market Size and Trends for Current Treatments
Mental illness affects over 700 million individuals worldwide, and around 19.7% of people over the
age of 16 experience depression and/or anxiety in the UK (Macrory and Randall, 2016). Globally,
the market size for depression and anxiety treatment was US$8.5 billion in 2019 and is expected to
grow to US$13.03 billion by 2027 (Fortune Business Insights, 2019?). The total cost of services in
the UK in 2007 was £1.7billion for depression and £1.2billion for anxiety, and these are projected
to grow to £3billion and £2billion, respectively, by 2026 (King’s Fund, 2008).

4.2.2 Factors Effecting the Growth of Current Treatments Market

It is speculated that the prevalence of side effects in current treatments is restraining the growth of
the market, with only 36% of those with depression and/or anxiety seeking help as a result of this
(Fortune Business Insights, 2019). This leaves room for considerable growth in the market
following the introduction of Psychocybin’s product, which has no known side effects.

Furthermore, the impact of the COVID-19 pandemic, which lead to a dramatic increase in both
depression and anxiety diagnoses is expected to be a major contributing factor to the growth of the
mental health treatment market (Fortune Business Insider, 2019). Due to a surge in diagnoses of
depression and anxiety, prescriptions for anti- anxiety and depression drugs rose 34.1% in 2020 and
is expected to rise further in the coming years (Fortune Business Insider, 2019).

4.2.3 Market Size and Trends for Psychedelic Drugs

The increasing prevalence of depression and anxiety, and the awareness around it, has driven the
demand for off-label drugs and alternative treatments, including the use of psychedelic drugs. The
global psychedelic drug market has been growing rapidly in recent years. It was valued at
US$2,823.67 million in 2020, and it projected to keep rising to US$7,567.52 million in 2028 (Data
Bridge Market Research, 2021).
In terms of later marketing of our product as general mental-wellness aid, we expect to see market
growth that mimics the rise of CBD. The CBD market in the UK is currently worth £300 million,
and this is expected to rise to £1billion by 2025 (Savills, 2020); a statistic which we believe will be
replicated in psilocybin-based products.

4.3 Target Market

Initially, Psychocybin’s target market will be the NHS, providing treatment to adults aged 18+
within the UK, who have been diagnosed with anxiety and/or depression, and who have shown
resistance to typical treatment models. The NHS provides treatment to 1.4 million depression and
anxiety patients per year (NHS, 2017) and it is estimated that 30% of patients with anxiety, and
55% of patients with depression are treatment-resistant (Thomas et al., 2013; Bystritsky, 2006). It is
estimated that 1 in every 4 people experience a mental health problem each year in the UK
(McManus et al., 2009) providing a constant and increasing target market for Psychocybin.

We will also target this customer base outside of the NHS, offering privately paid treatment.
90% of the mental health market expenditure can be attributed to the NHS, with 10% being
attributed to private consumers (Business Wire, 2020), so this market is substantially smaller than
that of the NHS. However, estimates suggest that 3% of the UK population are diagnosed with
depression in any given week, which increases to 6% for anxiety disorders, and 8% for mixed
anxiety and depression (McManus et al., 2016). Assuming a minimum of 30% of these patients are
also treatment-resistant, this leaves Psychocybin with a substantial market to target private therapy
too. In terms of demand, statistics showed a 65% increase in demand for private therapy from 2012
to 2016 (Whyman, 2018); a figure which is projected to continue growing throughout the coming
years.

Upon establishing ourselves in the mental health treatment industry, Psychocybin will further its
customer base to cover adults with a wider range of mental health conditions, as well as those who
are at the initial treatment stage, in addition to those who are treatment resistant.

Additionally, it is expected that psilocybin-based products will become popularised in the general
public in the coming years, much liked CBD products. At this point, our tea will be marketed to
those aged 18+ in the UK. Based on market research, it is expected that our customer base will
consist mostly of young adults aged 18-35, who are health-conscious and seeking to improve their
general mental wellbeing. Our market research indicated that 73.1% of people in the UK would be
open to consuming psilocybin-based products for general mental-wellness purposes.
4.4 Product Pricing
Initial pricing will be set at £2,000 per patient per session, with the majority of patients expected to
require only four sessions across one year. This would cost the NHS an average of £8,000 per
patient. In 2007, the mean cost of depression per patient was £9,311 (cost of treatment + cost of lost
employment) and the mean cost of anxiety per patient was £2,402 (King’s Fund, 2008). These
figures are expected to rise to £15,176 and £3819 respectively, by 2026 (King’s Fund, 2008).

- Cost of private treatment

4.5 Marketing Strategy

The target groups for our advertisements include both patients and professional mental health
caregivers. We will utilize both online and offline platforms to advertise/promote our services and
company:
 Online platforms include: company website, social media/online forum, Google ads, online
blogs/articles, and online seminars. Google ads is an online advertising platform created by
Google, where company can advertise in search engine results, websites, and mobile
applications (Google Ads, 2021). Google ads can easily reach out to our target markets with
its massive platform.
 Offline platforms include: print advertisement in magazines and journal publications, word-
of-mouth marketing, and offline seminars.
During the development and early rollout of our service, the advertisements and promotions will be
focused more towards the professional caregivers, since they play a major role in introducing our
service to patients. This will mostly rely on print advertisement on journal publications, online
blogs/articles, and words-of-mouth marketing. We will further utilize peer influence as a mean of
promotion. We will also organize regular seminars/webinars to introduce and promote our company
and services in a more formal manner to the professional caregivers. This will be done through a
partnership with universities, which may also have the extra benefit of familiarizing our company to
the university students.

It is also essential to promote our product directly to the NHS, as we are aiming to establish a
partnership with them. We will try to accomplish this through the Accelerated Access
Collaborative, an NHS program created to accelerate the introduction of new innovative treatments
(NHS Accelerated Access Collaborative, 2021). Campaigns aimed at the general public are also
needed to shift the current stigma of psychedelic therapies. These campaigns will be delivered
 mostly through online social media campaigns. We are also looking to collaborate with Mind, one
of the biggest mental health charity in the UK, to make our campaigns more effective.

4.6 Competitors
At the moment, anxiety disorders are commonly treated with selective serotonin reuptake inhibitors
(SSRI) drugs and psychological therapies, whereas the current approaches for treatment-resistant
depression (TRD) include: using maximum dosage of the initially prescribed drugs, switching to
another class of antidepressant, combining the use of antidepressant drugs from different,
combining pharmacological therapy with non-pharmacological therapy, such as psychotherapy or
electroconvulsive therapy (Credence Research, 2019; Voineskos, Daskalakis and Blumberger,
2020)

We have identified 4 competitors of our product, such as SSRI drug (Sertraline), Priory Group,
Esketamine (Spravato), and COMPASS Pathway. COMPASS pathway is a UK company who has
received the FDA Breakthrough Therapy designation in 2018 to accelerate their development of
psilocybin therapy to treat TRD. Their treatment approach involves psychotherapy and the
psilocybin ‘trip’ in a session, similar to our approach. Hence, we consider them as our current direct
competitor. We have also analysed the strengths and weaknesses of our competitors, which are
described in Table/Figure X

Table X. Summary of competitors

Product/ SSRI Priory Group Esketamine COMPASS Psychocybin
Service (Sertraline) (Spravato) Pathway
Summary One of the most A private mental Non-competitive NM A UK company A company
popular SSRI. health care facilities DA receptor researching offering
Prevents provider in the UK. antagonist based- psilocybin to psilocybin-
reuptake of intranasal spray treat TRD. assisted therapy
serotonin in the developed by in a form of tea
brain, relieving Janssen in a specialized
depression and Pharmaceutical, Inc. ‘clinical haven’
anxiety. It was approved by setting.
the FDA in 2019 to
treat TRD in
combination with
antidepressants.
Target Adult patients Adult patients with Adult patients with Adult patients NHS-referred
market with depression depression or TRD or depression with TRD. and private
/anxiety. anxiety with suicide ideation. adult patients
who can afford the with depression,
treatment cost. TDR and
anxiety.
Strength -Most - The biggest private - Currently the only - Received a - New approach
commonly mental health care drug of its own kind special FDA in using
prescribed provider in the UK. in the market. program in psilocybin tea in
antidepressant -Various - Forecasted to be 2018 to a ‘clinical haven’
in the UK. depression and one of the fastest accelerate their setting.
- Can be anxiety treatment growing market research. - NHS
prescribed for programs, ranging segment. - May offer partnership
other disorders from 1:1 therapy to - Faster to show cost- create sizeable
(e.g OCD, online therapy. effects compared to effectiveness, market.
PTSD, panic -Integrated conventional faster - Campaign
disorder). outpatient/inpatient antidepressants. treatment efforts to
- Patent has facilities. period, and introduce
expired, lower side- psilocybin to
available in effects general public
generic form. compared to and push new
competitors. legislations.
- Strategic - May offer long
partnerships term cost-
with another effectiveness,
start-up and faster treatment
health care period, and
providers. lower side-
- IP for effects
methods to compared to
produce and competitors.
prepare
psilocybin in a
large-scale.

Weakness - Takes up to 6 - Limited market - Not widely accepted - Negative - Negative

weeks to show (wealthy patients). by the market yet, stigma for stigma for
effects. - Partnership with due to controversy psychedelics. psychedelics.
-Needs to be NHS excludes surrounding the -Minimal - Current
taken up to 1 depression and evidences. campaigning regulations
year to anxiety disorder. - Not yet approved in efforts to prohibits use in
maintain - Company image the UK. introduce the UK.
effects. only appeals to - Expensive. psilocybin to - Long term-
- Numerous target market. - Potentials for general public. effects/adverse
side-effects abuse/misuse. -Currently effects not yet
- May worsen focused on known.
depression market outside -Might be more
symptoms, of UK. expensive than
trigger suicide competitors.
ideation.

Price - NHS - Starting from £112 - £10,000 per course - Not yet - £1,000 per
indicative price: per 1:1 therapy of therapy. disclosed. session.
£1.36- session. (estimated to
£28.00/28 be US$500-
tablets (50mg). 1,000 per
session)
- Dosage: min.
50 mg daily.

Overall, we have found opportunities for our business by looking at our competitors. The primary
strengths and opportunities of our service lie on its novelty, efficacies, cost-effectiveness and a
sizeable market size through the NHS partnership and private market. Our business also has the
potentials for collaboration and joint ventures with other competitors in the future, which is the
current trend in the psychedelic drugs market (Data Bridge Market Research, 2021). While there are
obvious threats to our business, especially the current negative stigma, law prohibition, our primary
research showed that the majority of our correspondents were open to try out psilocybin as a
treatment. Moreover, we will also organise campaigns to familiarise our business to the general
public and push new changes to regulations. The risk assessment section will further discuss and
address the potential threats of our business.

References
NICE (2011). Common mental health disorders | Guidance and guidelines | NICE. [online]
Available 

McManus S, Bebbington P, Jenkins R, Brugha T. (eds.) (2016). Mental health and wellbeing in

England: Adult psychiatric morbidity survey 2014.

Kelly, K., Posternak, M., & Alpert, J. E. (2008). Toward achieving optimal response: understanding and
managing antidepressant side effects. Dialogues in clinical neuroscience, 10(4), 409–418.
https://doi.org/10.31887/DCNS.2008.10.4/kkelly

https://www.theguardian.com/society/2017/jun/29/nhs-prescribed-record-number-of-
antidepressants-last-year

https://www.fortunebusinessinsights.com/anxiety-and-depression-treatment-market-
102787
https://www.businesswire.com/news/home/20200422005549/en/UK-Market-for-
Mental-Health-Market-Size-Growth-and-Major-Players---ResearchAndMarkets.com

https://www.england.nhs.uk/2017/12/1-4-million-people-referred-to-nhs-mental-
health-therapy-in-the-past-year/

https://www.kingsfund.org.uk/sites/default/files/Paying-the-Price-the-cost-of-mental-
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Carhart-Harris, R., Bolstridge, M., Day, C., Rucker, J., Watts, R., Erritzoe, D., Kaelen, M.,
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Griffiths, R., Richards, W., McCann, U. and Jesse, R., 2006. Psilocybin can occasion mystical-type
experiences having substantial and sustained personal meaning and spiritual
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https://www.mind.org.uk/information-support/types-of-mental-health-problems/
statistics-and-facts-about-mental-health/how-common-are-mental-health-problems/

Evans, J., Macrory, I., & Randall, C. (2016). Measuring national wellbeing: Life in the UK, 2016. ONS.
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https://www.databridgemarketresearch.com/reports/global-psychedelic-drugs-market

https://ads.google.com/intl/en_gb/getstarted/?subid=gb-en-ha-aw-bk-c-bau!
o3~CjwKCAjwjbCDBhAwEiwAiudBy8zxBV5mSW1HevYvzH-
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94527731~11199860344~467745007428
https://www.england.nhs.uk/aac/about-us/

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Voineskos, D., Daskalakis, Z. and Blumberger, D., 2020. <p>Management of Treatment-Resistant

Depression: Challenges and Strategies</p>. Neuropsychiatric Disease and Treatment, Volume 16,
pp.221-234.

McManus, S., Meltzer, H., Brugha, T. S., Bebbington, P. E., & Jenkins, R. (2009). Adult
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https://www.mentalhealthtoday.co.uk/news/awareness/rise-in-demand-for-private-
counsellors-as-patients-say-nhs-waiting-lists-are-too-long (Whyman, 2018)

https://www.savills.co.uk/research_articles/229130/296363-0

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