Happy Sunday!

Welcome to Issue No. 001 of Headlines, a weekly dispatch on the mental health industry. Super happy to have you here. Since we launched last week, there are almost ~400 (!) more of you who have joined. It’s been incredible to see so much interest and support in this space — really encouraging stuff.

New in town? If you missed Issue No. 000, check it out to learn why we exist. 

DOWN THE K-HOLE

Irwin Naturals is on a mission to become the “Coca Cola first mover” of psychedelic mental health. 

WHAT’S HAPPENING

Founded in 1994, nutraceuticals maker Irwin Naturals has built its business on vitamins and plant-based supplements. After moving in on substances like cannabis, it now has its sights set on ketamine:

• Irwin went on a ketamine clinic buying spree last year, rolling up over 17 locations across the US, including in Florida, Georgia, and Washington. 

• Last September, it entered an agreement to acquire Ketamine Media, a growth and marketing agency for ketamine providers. 

• And this past week, Irwin signed a LOI to acquire ketamine treatment provider Braxia Scientific for a proposed $30M. 

In the meantime, Irwin is reportedly in negotiations with 24 more clinics, aiming to add 55 more by the end of 2023, and 90 more by 2024. 

SOME CONTEXT

Ketamine-based therapy has taken off in recent years. From 2015 to 2018, the number of clinics in the US spiked 400%, from 60 to 300. 

Now, as the psychedelic renaissance picks up, ketamine-based therapies have taken the spotlight for three main reasons:

1. It’s currently the only legal psychedelic on the market.

2. It’s a faster trip than classic psychedelics like LSD or psilocybin (~2 vs 12 hrs)

3. There’s strong evidence around its efficacy as a rapid-acting antidepressant.

In fact, a single ketamine infusion has been shown to help reduce symptoms for treatment-resistant patients—some of whom have struggled with major depression for years—in as little as 40 minutes. That’s remarkable, considering cognitive behavioral therapy (CBT) or SSRIs can take up to weeks or months to work… if at all. 

No surprise, people are paying attention. Mainstream media is tapping in, politicians are taking note, and companies like Field Trip Health, Nue Life Health, and more have attracted hundreds of millions in VC funding. 

PUMP THE BRAKES

Still, there’s reason for caution.

Antidepressant or not, ketamine is a powerful substance with the potential for addiction and abuse, plus its own laundry list of side effects, from “ketamine bladder” to cognitive impairment. 

Last year, an exposé from Rolling Stone investigated DTC tele-ketamine startups like Peak, accusing them of fishing for demand, overhyping the drug, and providing poor quality care and integration. Peak closed down shortly thereafter amid the controversy. 

Digging deeper, the questions extend beyond just tele-startups, with wide-ranging inconsistencies across clinics in quality of care. Experts have also raised concerns around the potential risks around lack of data. 

Coming full circle to Irwin Naturals’ recent rollup, the nutraceuticals industry (a largely unregulated sector) has its share of skeptics. And in the past, Irwin has been accused of misleading marketing and unfair business practices. Not a great precedent when you’re working with the mentally ill. 

WHY IT MATTERS

A 30-year-old supplements company betting big on ketamine? It’s further proof that the industry is far past the inflection point and rapidly gaining momentum. And Irwin isn’t the only one in this space — it’s chasing Numinus Wellness (4x as many clinics) and Field Trip (2x as many clinics) in both reach and run rate. 

As bigger and bigger players get involved though, we can’t help but think of the recent fall from grace of various high-profile telehealth “Adderall mills.” And this isn’t the first time the media has touted a new substance as a depression “wonder drug.”

Going forward, it’ll be essential for clinics, startups, and providers across the country to adhere to recommended protocols, prioritize patient well-being, and provide proper education around the drug — NOT peddling it to depressed TikTok users.  

Punchline: Though early evidence for ketamine-based therapy is promising, a few bad (or well-intentioned, but overeager) actors could set the movement back years. That would be incredibly unfortunate for the clinics who are providing high-quality care — and the millions of people who could stand to benefit.

QUICK HITS

• Red wave. Psychedelics may impact the menstrual cycle.

• Slowdown. Psychedelic co’s raised just $526M in 2022, down ~70% YoY.

• IFSbot. GPT bot, leveraging Internal Family Systems coaching, launches.

• Mombot. AI chatbot startup Woebot Health enrolled its first patient for PPD.

• DMT update. New study reports rapid, durable antidepressant effects of DMT.

• UX matters. New 988 suicide line got 500k more calls than the old 10-digit one.

NEWS & TRENDS

1) Psychedelic legislation flurry

2023 opened up with a flurry of new psychedelic legislation. In the US, a dozen or so states are pushing for some kind of policy reform, including CA, NY, and most recently MA. Meanwhile, Coloradans voted last fall to legalize psilocybin and other plant-based psychoactive substances, becoming the second state after Oregon to do so. 

But it hasn’t been all smooth sailing. Virginia’s efforts were blocked earlier this month. And over in Oregon, where legislation is live, there are currently no licensed facilities, facilitators, or manufacturers. What’s more, many are raising alarms at state-governed attempts for mandated data collection. It’ll be a tricky path forward — keep an eye on Oregon and Colorado as they navigate their decrim and legislation rollouts. 

→Read more

2) Breathwork bonanza 

Breathwork is back in vogue. Within the past month, two new papers have been published exploring different forms of breath and their impact on mood, physiological arousal, and stress. Meanwhile, Othership just raised $8M (see below), and there’s a growing number of coaches and guides leveraging breathing practices, both in isolation and in tandem with other therapies. 

→ Read more

DEALS & DEBUTS

🕹️ Journal Clinical, a plug-and-play platform for psychedelic therapists, raised $8.5M in a Series A round led by Union Square Ventures. The company is focused on empowering mental health practitioners to offer psychedelic therapy treatments (currently focused on ketamine) and intends to use the funds to scale across the US.→ source 

🌬️ Othership, a wellness studio known for hot/cold therapies and guided breathwork, raised $8M in a Series A round led by Vine Ventures. The Toronto-based startup is working to build the “future of emotional wellness” through its social bathhouse experiences and breathwork app. → source

🔬 People Science, an alternative therapy clinical research platform, added $5.3M in its second seed round, led by Acre Venture Partners. The startup aims to craft an ecosystem to help patients, doctors, and scientists test out nontraditional medicines such as psychedelics, cannabis, and food-as-medicine approaches. → source 

🌀 Oneleaf, a self-hypnosis app, closed €4.7M ($5.1M) in a round led by Frst. Looking to make hypnosis mainstream, the startup provides various programs to help users quit smoking, reduce anxiety, or lose weight. → source 

🏕️ WITHIN Health, a psychedelic medical clinic and retreat center, closed $1.1M in Series A funding to enter three new markets. The Austin-based company is currently focused on ketamine therapy, along with a comprehensive integration program, to treat PTSD, depression, anxiety, and addiction. → source

👾 TRIPP, a VR meditation startup, joined forces with Equa Health, a mindfulness training app from Carnegie Mellon University. The partnership will feature an intro to Equa by TRIPP and offer clinically-backed VR mindfulness training. → source 

📋 Angle Health, a digital-first health insurance provider, landed $58M in Series A funding led by Portage. With an AI-enabled tech platform, the company integrates telemedicine, behavioral health, and other digital health solutions into its plans at minimal to no cost for members. → source 

🇬🇧 The UK government has pledged £150M to boost mental health services in the country. The funds will go towards over 150 new projects, from new mental health ambulances to crisis cafes and crisis houses. → source

🌿 WellSet, a digital holistic health studio, introduced an emotional and mental health benefit to help employers address the burnout epidemic. It provides access to thousands of classes spanning practices like acupressure, self-hypnosis, EFT/tapping, and yoga.→ source 

🏥 CVS debuted Virtual Primary Care, its digital offering that provides primary care and mental health services. The service, which offers 24/7 on-demand care, is now available to Aetna commercial members nationwide. → source

🗣️ Humans Anonymous, a live audio platform that facilitates safe spaces to help people feel less alone, debuted on the App Store to 30,000+ pre-orders. The platform hosts audio spaces for ADHD, anxiety, loneliness, breakups, and more. → source

⚙️ Lucet, a behavioral health optimization company, launched with a new solution to reduce costs and improve quality for health plans. → source

READS

“After The Ecstasy, The Laundry” → Psychedelic Alpha 

“Mental Health Apps Won’t Get You Off The Couch” → WIRED

“The Cause of Depression Is Probably Not What You Think” → Quanta Magazine

Well, that’s all for today! If you’re reading this, thanks so much for being a part of this journey. Really grateful for each and every one of you. I hope you have a great and peaceful start to your week, and I’ll see you next Sunday.

In the meantime, enjoy some pics of this Headlines cake :)

-Mel

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