Psychedelic medical treatments and therapies are getting a growing amount of attention from investors. Magic mushroom ingredient psilocybin has shown promise in treating a number of mental health disorders and addictions, and many smaller biotechnology and biopharmaceutical companies are entering the emerging sector.
Funding for psychedelic medicine crossed $700 million in 2021, according to market research firm CB Insights, which was nearly eight times the 2019 funding level. The global market for psychedelic drugs is forecast to reach $8 billion by 2029, growing at a compound annual growth rate (CAGR) of 13%.
At the same time, Oregon is set to become the first U.S. state to officially legalize magic mushrooms, a precedent setting move that is seen as giving a big boost to psychedelics and could prompt other states to also legalize mind-altering substances. As the market for psychedelic medicine emerges and Oregon’s Magic Mushroom Bill goes into effect, we look at three stocks to consider.
Psychedelic Stocks to Buy: MindMed (MNMD)
New York City-based MindMed is a biotechnology company that is developing psychedelic medicines and therapies to treat addiction issues and various mental illnesses, including anxiety disorders. MindMed’s work is highly experimental, although it does currently have an ongoing clinical trial focused on micro-doses of LSD to help lessen anxiety in people.
MNMD stock trades at the depths of the penny stock league tables and the share price is currently worth only $1.07. However, the company’s stock has fallen about 22.50% year-to-date, although considering the benchmark S&P 500 has also fallen nearly 5% in the same timeframe shows it’s not just psychedelics experiencing a bear market.
Based in Toronto, Canada, Cybin is also developing psychedelic treatments for addiction and mental illness, and claims to have a rapid delivery system to get needed treatments to the brain quickly and efficiently. Like MindMed, Cybin too has ongoing clinical trials in an effort to bring its products to market.
Currently, CYBN stock is trading at $0.80 per share and is down 27.5% YTD. Over the past six months, the share price has declined 60%, largely on delays in the company’s development pipeline. However, the company has announced the successful adoption of several patents recently and continues to move its clinical trials forward.
Psychedelic Stocks to Buy: Field Trip Health (FTRP)
Another Toronto-based psychedelic stock to consider is Field Trip Health. The company is primarily focused on developing psychedelic treatments for depression and combines its medications with rigorous psychotherapy treatments. While headquartered in Canada, Field Trip Health also has operations in the U.S. and Europe.
As with many psychedelic stocks, Field Trip Health is down sharply this year. Since the start of January, FTRP’s share price is down 46% to $1.32. Over the past six months, the stock has fallen 72%. While that might be discouraging, Field Trip Health is making progress in expanding and growing its operations globally.
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On the date of publication, Joel Baglole 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.