It’s no secret that 2020 was a turning point for psychedelic stocks in the eyes of investors. The pandemic has precipitated a heightened focus on mental health and the inadequacies of our current standards of care.
It has led to the dawn of a new alternative drug industry that capitalizes on psychedelic substances. Therefore, psychedelic stocks are in the spotlight like never before with the opportunity to prove their investment potential to the capital markets.
The psychedelics market is on track to keep commanding investor attention this year. However, companies must continue delivering results and proving their worth with various mental health conditions. The first listing of a psychedelic pharmaceutical company was a landmark event for the industry in 2020.
According to research, the industry is expected to grow at a massive 15.8% from 2020 to 2027. With that being said, let’s look at three of the top psychedelics that are making waves at this time.
Psychedelic Stocks to Buy: Compass Pathways (CMPS)
Compass Pathways is a U.K.-based development-stage biotech company leading the research on psilocybin for the treatment of depression.
It has patented its investigational psilocybin formulation called COMP360. Moreover, it is currently testing a synthetic form of psilocybin that could open up a multi-million dollar income stream.
It listed on the stock exchange back in September, becoming the first in its industry to do so. It’s been a rocky time so far for CMPS stock, but things could turn around once we have the data from its clinical trial later this year.
COMP360 is currently in phase 2b of its trials and has received a breakthrough therapy designation by the FDA. Moreover, it had $196.5 million as of September 2020, enough funds to carry out its operations until 2023.
Mind Medicine (MMEDF)
Canadian psychedelic drug developer is one of the few companies in its sector that is developing several non-hallucinogenic therapies.
If these therapies are green-lit, they could treat addiction, attention deficit hyperactivity disorder (ADHD), and other related problems. With such a promising pipeline, MMEDF stock has been one of the best performers in the sector, as it grew by 569% in the past 12-months.
Currently, its LSD project for ADHD is in phase 2a and has passed the initial safety testing. Another one of its hallucinogenic therapies is in the same clinical trial stage for anxiety.
Moreover, it also initiated the first phase of its LSD neutralizer drug. If everything goes to plan, the company could steal a sizeable portion of the rapidly expanding global market for anxiety, depression, ADHD, and related drugs.
Numinus Wellness (LKYSF)
Numinus Wellness is the first Canadian public company to receive a cultivation license for the production and extraction of psilocybin.
It has an import, export, and distribution license for the DMT, psilocybin, MDMA, and other psychedelics.
The goal is to make psychedelic-assisted therapies accessible through its network of health centers. LKYSF stock has been doing incredibly well on the stock market, having posted a 192% gain in the past six months.
The company plans to accomplish its objectives in a variety of ways. Firstly, it plans to offer ketamine-assisted psychotherapy in addressing depression. Secondly, it will facilitate patients in gaining special access to psychedelic-assisted psychotherapies. Finally, it will be undertaking clinical trials for psilocybin and MDMA in its clinics. These strategies will allow the company to gain a significant share in its domestic market and lay the foundation for future expansion.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article