This Big Pharma Company Is Becoming a Psychedelics Stock, but Don't Buy It (Yet)

Otsuka Holdings (OTC: OTSK.Y), one of the biggest pharmaceutical companies in Japan, is getting into the business of psychedelic therapies. On Sept. 1, it announced that one of its U.S. subsidiaries plans to acquire Mindset Pharma, a Canadian biotech specializing in psychedelics, for roughly $58 million in cash.

The deal marks the first serious entry of a major global pharmaceutical player into the psychedelics market. The boards of both businesses have given the green light to proceed, and the transaction is expected to close in the fourth quarter.

But even if you're interested in capturing some of the possible growth that Otsuka could derive from this deal, it would be better to hold off on purchasing this stock for now.

Source Fool.com