Psychedelic drugs are going mainstream fast, with research supporting their effectiveness in alleviating emotional problems. Scientists continue to revisit different psychedelics such as LSD, magic mushrooms and other therapeutics for a range of mental ailments. Research is in full swing with the announcement from Johns Hopkins on its development of the Center for Psychedelic and Consciousness Research. With a $17 million commitment for planned studies, the research will further help in normalizing psychedelics. Therefore, the shroom boom has well and truly arrived, and investors should seriously consider adding psychedelic stocks to their portfolios.
Investor interest in psychedelics is on the rise as high-profile executives and celebrities are investing in the sector’s future. With such much interest in alternative psychedelic medicine, analysts believe that the sector could bring in over $6.85 billion by 2027. However, government support and widespread legalization are essential for its rapid advancement. With the recent legalization of psychedelics in various states, it won’t be long when they line up pharmacy aisles.
It is imperative to invest in psychedelic stocks that are needle-movers having the most potential for sustained success. Here are three that stand out right now:
- Champignon Brands (OTCMKTS:SHRMF)
- Mind Medicine (OTCMKTS:MMEDF)
- Hollister Biosciences (OTCMKTS:HSTRF)
Psychedelic Stocks to Buy: Champignon Brands (SHRMF)
Champignon Brands is among the first movers in the psychedelic medicine field and it completed its IPO earlier this year. It is engaged in the production of novel medications, specifically medicinal mushroom products, which aim to treat a variety of mental health problems. It boasts one of the strongest research teams led by its Special Advisory Committee, working diligently to provide high-quality data to its production team. Hence, SHRMF stock is among the hottest investments in the burgeoning psychedelics field.
It has been a busy 2020 for the Vancouver-based company. In April, it announced that it would be acquiring clinic operator AltMed Capital Corp, aiming at opening several subspecialty therapeutic clinics across the U.S. Additionally, the deal also provides several intellectual properties in developing novel medicines. Moreover, Champignon is also looking to open clinics for psychedelics, such as ketamine, psilocybin and MDMA throughout the North American continent.
It has six current trials in Phase I and pre-clinical stages collectively and seven patents pursuing ketamine/psilocybin solutions. To better reflect its scientific alignments, it is proposing a name change to Apotheosis Scientific Ltd. Therefore, with so much on its plate, the company can become a juggernaut among psychedelic stocks.
Mind Medicine (MMEDF)
MindMedicine is one of the largest biotechs involved in psychedelic drugs’ clinical development tackling mental health troubles. With the success of its Compass Pathways IPO, it is now looking to enlist on the U.S. stock exchange. It would become the second pure-play to be listed on Nasdaq. Hence, MMEDF stock is one of the top investments in the sector with massive potential.
It has three on-going clinical trials, which can be major catalysts for its success. It is testing the effectiveness of LSD in tackling neurological troubles. The trials are looking at how they could provide long-term benefits in the reduction of anxiety. These trials are in the advanced stages and could lead to a breakthrough. The company has sizeable cash equivalents totaling $18.2 million, having $23.7 million in total assets. Hence, it has the firepower to take its trials past the finish line.
Hollister Biosciences (HSTRF)
Hollister Biosciences produces and distributes cannabis products in its home market of California. It is one of the more established names in the cannabis space, a niche that carries significantly lower downside than the psychedelics market. In expanding its product portfolio, it recently acquired AlphaMind Brands and Venom Extracts. Hence HSTRF is among the investments carrying the lowest risk in the psychedelics industry.
Recent financial results have been impressive, with its second-quarter revenues growing to $8.47 million compared to $0.2 million last year. Moreover, net income during the period was $0.3 million in comparison to a $2.1 million loss in the previous quarter. Looking ahead, the company recently stated that it posted record third-quarter revenues. The quarterly revenue is expected to be CAD 12.5 million and an EBITDA of CAD 1.26 million. Hollister Biosciences has immense potential in establishing itself as the leader of the marijuana space generating sustained revenues.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. He does not directly own the securities mentioned above.