The Wicked City (1992)

Taki is assigned to go after Daishu, a businessman who is suspected by the police to be selling the drug happiness, a drug from the Rapter's world that causes people to evaporate if they stop taking it. Actually, it is another group of Rapters that are selling the happiness. The second group attacks Daishu's group, and eventually Taki, Daishu, and Daishu's daughter join forces to fight the evil Rapters. Lots of psychic powers, shape changing and general weirdness.