Last November, Oregon legalized psychedelic mushrooms, and that got some market traders thinking. The potential for decriminalization of psychedelic medicines in the U.S. is definitely bullish for Mind Medicine (NASDAQ:MNMD) and could propel MNMD stock higher.

If you’re looking to capitalize on the burgeoning “shroom boom,” Mind Medicine is among the most promising investable businesses in this niche market.

Some traders might be concerned because MNMD stock rallied sharply in late 2020. They may feel that the train has already left the station, so to speak.

To that, I would respond that there’s still a rich opportunity with Mind Medicine. And, as we’ll see, the company isn’t solely focused on “shrooms” as there are other avenues to explore in psychedelic medicine.

MNMD Stock at a Glance

Would you believe that MNMD stock traded for less than 50 cents as recently as September of 2020? This was truly a penny stock — but it was about to embark on a wild ride.

The bulls completely took over in November and December, taking Mind Medicine shares all the way up to over $4.

Then the stock wiggled and wobbled for a while. Another quick rally happened in April of 2021 as the share price shot up to a 52-week high of $5.77.

As of June 29, MNMD stock is trading close to $3.60 — far higher than it was a year ago, but still below the peak price.

The $5 and $6 levels will be crucial in the near term. In the coming months, traders should keep a close watch and see how the stock behaves at those price points.

Discussion with the FDA

It’s not an easy process to get a drug approved by the U.S. Food and Drug Administration (FDA). It can take years, which means that investors sometimes need to be very patient.

There’s been an encouraging development, however, as Mind Medicine recently announced that it’s having a productive discussion with the FDA.

Specifically, Mind Medicine received Type C Meeting Responses from the FDA, leading to the finalization of the company’s clinical development approach for Project Lucy by selecting Generalized Anxiety Disorder as an initial indication.

Project Lucy involves a psychedelics-assisted therapy trial for the treatment of anxiety disorders.

Currently, Mind Medicine is on target to formally submit its Investigational New Drug (IND) application for Project Lucy in the third quarter of 2021. The company also expects to launch Project Lucy’s Phase 2b clinical trial in 2021’s fourth quarter.

So clearly Mind Medicine isn’t exclusively focused on psilocybin (mushrooms).

A Powerful Effect

Project Lucy will assess improvements in anxiety symptoms following administration of LSD — and it appears that the FDA is at least willing to discuss the possibility of Project Lucy moving forward.

Meanwhile, Mind Medicine is also exploring the healing potential of mescaline.

Reportedly, a local Swiss ethics committee approved a clinical trial evaluating the acute effects of different doses of mescaline and the role of the serotonin 5-HT2A receptor in mescaline-induced altered states of consciousness.

The study will explore whether the acute psychoactive effects of mescaline in humans are mediated by 5-HT2A receptors.

“We believe the drug will have a powerful effect on enhancing the communication between different parts of the brain in unique ways that are otherwise inaccessible to the conscious mind,” Mind Medicine President Miri Halperin Wernli explained.

It might be said that there’s a lack of thorough studies of mescaline’s medicinal effects.

Mind Medicine is boldly taking steps to address this. It will be exciting to see the results of Project Lucy and the new mescaline clinical trial.

The Takeaway

Full, global approval of these drugs won’t happen overnight. For the time being, it’s all about the baby steps.

Those steps are likely to accelerate, though, as long as Mind Medicine continues to pursue innovative science.

And that’s bullish for MNMD stock, which has room to move significantly higher.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.