This new application has at least some data to support it...
Markus Heinrichs, et. al., working at the University of Zurich, reports that it may work by affecting the amygdala. This would have the effect of reducing the fear response. This builds on prior work indicating that it reduces phobic fear, improves trust, and improves the ability to discern the emotional states of other people. The details of those studies can be found on his web page, linked above.
The study about the use in shyness have been reported in the media (New Scientist, Coolest Gadgets). Apparently the original media report came from Asian News International, as reported by Yahoo. Reportedly, the results are to be formally presented at the International Brain Research Organization's World Congress of Neuroscience in Melbourne, Australia this week.
A quick Medline search indicates that the results are not in print yet. That being the case, it is difficult to make informed comments on whatever data he may have. The media reports indicate that a commercial pharmaceutical product may be available in a little as five years.
Presumably, it would be intended as a treatment for Social Phobia. If it really is safe and effective, it would be a welcome advance. Currently the best drugs for Social Phobia are the monoamine oxidase inhibitors. Benzodiazepines can be used as well. SSRIs can be used too, but frankly I have not been impressed by their efficacy. There are problems will all of those approaches. In fact, psychotherapy is probably the best treatment at this time.














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