Psychedelic drugs could be a major game-changer when it comes to treating mental illness, so loading up on some psychedelic stocks only makes sense.
All as psilocybin, LSD, MDMA, and mescaline for example show progress in treating major issues such as obsessive-compulsive disorder, PTSD, addiction, depression and anxiety.
New York University found that psilocybin lead to a “rapid and sustained” reduction in anxiety and depression, as noted by the Financial Post. Johns Hopkins just received a grant from the National Institutes of Health to study the medicinal qualities of psilocybin.
A study in Nature Medicine found that MDMA, along with counseling helped patients with PTSD.
In fact, according to the authors of the study, “MDMA has been shown to enhance fear memory extinction, modulate fear memory reconsolidation (possibly through an oxytocin-dependent mechanism), and bolster social behavior in animal models.”
LSD may be able to help with depression, PTSD, and stress disorders. Even ketamine has been shown to be useful. In fact, a derivative of it called esketamine is used in FDA-approved Spravato for treatment-resistant depression and other depressive symptoms.
In short, we could be looking at a multi-billion-dollar opportunity here.
Plus, consider this. “Since the heyday of SSRIs (selective serotonin reuptake inhibitors) such as Prozac, ‘big pharma’ has withdrawn from psychiatric drugs research and development, and industry experts are warning the pipeline is running dry,” as noted by The Guardian contributors, Mary O’Hara and Pamela Duncan.
That news alone could be game-changer for psychedelics – especially if such drugs can help treat millions of people with some sort of mental ailment.
That being said, some of the top investment opportunities include:
- AdvisorShares Psychedelics ETF (NYSE:PSIL)
- Mind Medicine Inc. (NASDAQ:MNMD)
- Field Trip Health (NASDAQ:FTRP)
Psychedelic Stocks: AdvisorShares Psychedelics ETF (PSIL)
One of the best ways to diversify is with an ETF such as the AdvisorShares Psychedelics ETF. In fact, it’s one of the top ways to diversify in any hot market out there. Not only do they offer a good deal of exposure to dozens of stocks, but they also do so at less cost.
For example, PSIL currently trades at $8.56, with an expense ratio of 0.6%. If I wanted to buy 100 shares, it would cost me $870. However, if I wanted to buy one of the ETF’s top holdings – Compass Pathways (CMPS), it would cost me about $3,482.
Other top PSIL ETF holdings include Field Trip Health (FTRP), Cybin Inc. (NYSE:CYBN), ATAI Life Sciences (NASDAQ:ATAI), Mind Medicine (MNMD), Seelos Therapeutics (NASDAQ:SEEL), Numinus Wellness (OTC:LKYSF), and Greenbrook TMS Inc. (NASDAQ:GBNH) to name a few.
While the PSIL chart is nothing to write home about – just yet, give it some time. If the psychedelics story catches on, as hoped, the ETF could double, if not triple.
Psychedelic Stocks: Mind Medicine Inc. (MNMD)
Over the last few months, the MNMD stock ran from a low of $1 cents to a high of $5.75. Currently consolidating at $2.24 a share, I’d like to see the stock test its prior high.
As the psychedelics story goes mainstream, the company hopes to use DMT, MDMA, psilocybin and LSD to help treat issues such as anxiety, major depressive disorder, pain disorders, treatment resistant depression, and opioid use disorders.
Most recently, the company launched studies of low-dose LSD and its potential impact on sleep and cognitive measures.
According to Dr. Kim Kuypers of Maastricht University, as quoted in an MNMD press release. “We are investigating whether the repeated intake of lower doses could lead to realignment of patterns of thinking that would enable individuals to access levels of self-awareness that can provide an enriched experience of life.”
Psychedelic Stocks: Field Trip Health (FTRP)
Another hot psychedelic stock to keep an eye on is Field Trip Health. Over the last year, the FTRP stock ran from a low of about $2 to a recent high of $5.80. From here, I’d like to see the stock challenge its prior high of $7.50, near-term.
All as it pushes forward with research into psilocybin and its potential impact on treatment-resistant depression, which impacts about 100 million people worldwide. In addition, the total addressable market for TRD is $21 billion, according to a Field Trip Health investor deck.
The company is also hoping to treat post-partum depression (PPD), which impacts about 735,000 women worldwide in a $4.4 billion market. In addition, the company just announced it earned patient services revenues of $907,816, an 860% improvement year over year.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.