Since mid-2021, biotech companies developing medicines based on psychoactive molecules like LSD and psilocybin (more commonly referred to as psychedelics) have had a rough go. Stocks of most of the segment's leaders are down more than 75% compared to three years ago, and for a time, funding for early-stage businesses looked like it was drying up.

2024 is going to be different. In fact, there's reason to believe that investors should prepare for takeoff, and also that there are opportunities in store for those who are comfortable taking significant risks with their money. Let's analyze what's going to happen and what it means.

In late 2023, three important developments set the stage for 2024 to be a wild year in the psychedelics industry. Two of those pertain to treating post-traumatic stress disorder (PTSD) using psychedelic medicine in conjunction with psychological support provided by a trained practitioner. Approximately 13 million people in the U.S. suffer from PTSD to some degree, and many don't get sufficient relief from the existing set of interventions, so it's a common indication for the psychedelics businesses to target, as the market is likely to be large.

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Source Fool.com