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Lucy Scientific Discovery: Navigating Growth and Diversification in the Psychedelic and Wellness Sectors

This has been a busy quarter for the psychedelic industry, particularly Lucy Scientific Discovery Inc. The company has announced three acquisitions in…



This has been a busy quarter for the psychedelic industry, particularly Lucy Scientific Discovery Inc. The company has announced three acquisitions in the past three months. These acquisitions create an interesting and unexpected pathway for the company.

The NASDAQ-listed Lucy Scientific Discovery has greatly expanded its reach within the psychedelic, wellness, and cannabis industries this quarter. It can only mean one thing— the company has a broad vision of its future and intends to position itself to operate within a vast ecosystem.

First and foremost, Lucy Scientific Discovery is a manufacturing company. The company was granted a Controlled Substances Dealer’s license from Health Canada in 2021. The license allows the company to produce psilocybin, psilocin, LSD, N-DMT, MDMA, and 2C-B.

The company has quickly evolved and is expanding how it will support the psychedelic industry beyond manufacturing clinical-grade psychedelic compounds. In the first month of the third quarter, Lucy Scientific completed its acquisition of drug development asset Wesana Health Inc.

Wesana’s drug SANA-013 was the primary target of the acquisition. Lucy’s goal was to strengthen its position in drug development, in addition to its manufacturing activities. The drug is a combination of psilocybin and CBD. The program plans to target major depressive disorder, migraines, episodic cluster headaches, and trigeminal neuralgia. 

The deal was advantageous for Wesana as well. Bringing a drug to market for just one indication costs hundreds of millions of dollars. With the other two acquisitions Lucy Scientific has announced recently, the company will have access to revenue that will help support the clinical trials of SANA-013 and drive it all the way through to FDA approval. 

Early September brought with it an advantageous deal with the iconic cannabis brand High Times. Lucy Scientific acquired High Times IP in an all-stock deal. 

Due to federal regulations that prevent cannabis brands from trading on the NASDAQ, High Times has had restrictions on its expansion despite the success of the company. This deal is a loophole that will allow investors to gain access to High Time’s brands. 

The deal is not a complete acquisition of the company. Lucy Scientific will be acquiring core assets, including IP and licensing of High Times, as well as the Cannabis Cup. The deal increases Lucy’s revenue potential in the short term. 

Operating in the psychedelic industry is a long-term game. There are few revenue streams available, and all companies in the space that are on track toward profitability in the near future have only been able to do so through ventures outside of illegal psychoactive compounds. 

Several companies have been turning to the non-psychedelic wellness space as a quicker path toward profitability. In Psychedelic Invest’s interview with Red Light Holland’s CEO, Todd Shapiro expressed the company’s focus on nutritional mushroom brands due to the lack of a market for psychedelics. Lucy Scientific seems to share this view. 

Just a week after Lucy Scientific announced its deal with High Times, the company announced an acquisition of BlueSky Wellness. 

This isn’t the first time Lucy Scientific has shown an interest in the non-psychedelic wellness market. In March 2023, the company announced Mindful by Lucy— an Amanita Muscaria mushroom brand. This was also the beginning of the company’s collaboration with High Times. 

Lucy Scientific partnered with the iconic cannabis brand to market the new product through its website and social channels— reaching millions of people. Now, the company will use the BlueSky Wellness E-commerce platform to market and sell Mindful, as well as several of High Time’s brands. 

The psychedelic industry is difficult to navigate given its novelty, and Lucy Scientific is making strategic moves to both increase revenue in the short term and prepare to capitalize on several markets in the long term.

The recent series of acquisitions by Lucy Scientific Discovery Inc. marks a significant expansion and strategic pivot within the psychedelic, wellness, and cannabis industries. Their vision for the future is evidently broad and ambitious— positioning the company to operate at multiple levels within these rapidly evolving sectors. 

The manufacturing company has officially shifted towards a more comprehensive involvement in drug development, marketing, and sales. 

The acquisition of Wesana Health was a pivotal move to fortify its position in drug development. By obtaining the rights to SANA-013, Lucy Scientific diversified its portfolio beyond manufacturing controlled substances. 

Next up, the acquisition of High Times IP is a clever maneuver to help the iconic cannabis brand gain access to the NASDAQ while working within the constraints of federal regulations. It also gives Lucy Scientific access to revenue-producing assets in the cannabis industry. 

Though the cannabis industry is struggling right now, High Times is a strong company that is positioned for success. This strategic partnership further expands the company’s revenue streams beyond traditional psychedelic compounds and creates a diverse portfolio of assets. 

Given the limited revenue streams available within Lucy’s original target market, diversification into non-psychedelic areas is a logical strategy for faster profitability. Though the cannabis industry is also volatile, the wellness market is full of immediate opportunities. A handful of psychedelic companies have identified this opportunity and are using it to support their endeavors.

The company’s move into legal mushrooms and other wellness products aligns with this trend. Leveraging collaborations with High Times and utilizing the BlueSky Wellness platform to market and sell their products is an innovative approach to expanding their reach, revenue potential, and security.

The acquisitions made by Lucy Scientific Discovery indicate a strategic shift from being solely a manufacturing entity to a multifaceted player in the psychedelic, wellness, and cannabis industries. These moves position the company advantageously in the drug development landscape and facilitate diversification into revenue-generating ventures beyond psychedelic compounds. 

The ability to navigate regulatory hurdles, forge strategic partnerships, and diversify revenue streams demonstrates adaptability and a keen understanding of market dynamics. Though promising, these industries are not easy to break into. It takes grit and a willingness to adapt to be successful— the strongest companies know that. 

Just last week, one of the top companies in the industry— Numinus— announced several big changes designed to shift towards revenue-producing activities. Making sacrifices and strategic shifts now could mean the difference between success and failure in the future. 

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