Psychedelic Venom: A New Frontier for Big Pharma
Major pharmaceutical companies are making a bold gamble, aiming to transform toad psychedelic venom into a lucrative product.
They are investing billions in a drug known as 5-MeO-DMT, commonly referred to as Bufo. This potent psychedelic occurs naturally in the venom of Colorado River toads. Its rising popularity in Mexican clinics has captured the interest of prominent drug companies and investors who hope to see a synthetic version gain FDA approval, according to reports.
Even though the substance is illegal in the U.S., veterans who have explored various mental health treatments, including conventional therapy and SSRIs, indicated to the Journal that this drug often becomes a “last resort.” Those who have taken it describe an extremely intense experience, which can include “physical tremors, loud noises, and, in rare instances, prolonged dissociation.” Reports suggest that about 5% of users find the experience overwhelmingly intense.
Standard antidepressants already carry serious side effects, including insomnia, skin rashes, and various forms of physical discomfort. More severe risks associated with SSRIs include a decreased ability for blood to clot, which can lead to internal bleeding.
Compared to these FDA-approved medications, the risks tied to regular psychedelic usage—especially when combined with other drugs—could potentially be even greater. Ingesting toad venom can evoke profound feelings of fear and emptiness. Mixing it with other antidepressants might lead to dangerously high body temperatures or even fatal outcomes.
Dr. David Lankri from Columbia University expressed that this drug might be “the most powerful, strange, and profound psychedelic of all time.” He also noted its ability to target two distinct serotonin receptors, similar to existing SSRIs.
The interest in toad venom as a treatment avenue has historical roots, dating back to the 1980s when Ken Nelson documented his experiences with the substance. Recently, business leaders in tech and media, such as Sam Altman of OpenAI and Sergey Brin of Google, have also become vocal advocates for its potential.
Biotech firms are racing to capitalize on this emerging market for synthetic 5-MeO-DMT, promoting its short duration of effects as a significant advantage in clinical settings. Unlike other psychedelics, which have prolonged effects, 5-MeO-DMT tends to wear off in about 30 minutes, allowing for concentrated treatment sessions.
Pharmaceutical giant Eli Lilly, recognized for its well-known GLP-1 drug for diabetes and obesity, has ventured into psychedelics, most notably acquiring Ataibekly for $2.8 billion. This acquisition gives Lilly access to a drug that holds potential breakthrough status with the FDA.
Srinivas Rao, co-founder of Ataibekly, mentioned that psychedelics can offer “immediate effects” alongside “long-lasting effects.”
Preliminary studies suggest that 5-MeO-DMT might quickly alter brain activity patterns, presenting rapid antidepressant effects. Public officials, aware of the limitations of current approved drugs, are taking notice. Secretary of Health Robert Kennedy Jr. emphasized the significant potential of such treatments in clinical settings.
In an effort to broaden access to these options, President Trump signed an executive order in April 2025 aimed at expanding research into psychedelic therapies.
However, the substance is not without its caveats. Matt Zorn, deputy general counsel for Health and Human Services, acknowledged that while there’s considerable support for 5-MeO-DMT’s approval, it’s important to understand the contexts in which it operates.
Since Trump’s administration began in January 2025, stocks for biotech firms engaged in psychedelic research have surged, with Ataibekly’s shares reportedly increasing by 253%.
Rao projected that an FDA-approved version of 5-MeO-DMT could balloon into a “multi-billion-dollar market.”
