Psychedelics stocks, like Seelos Therapeutics (NASDAQ:SEEL), Scisparc (NASDAQ:SPRC) and Bright Minds Biosciences (NASDAQ:DRUG), are taking off today. This morning, it was announced that the Michael J. Fox Foundation selected Seelos for a grant to assist in the company’s gene therapy candidate for Parkinson’s disease (PD), SLS-004. The foundation is the largest nonprofit funder for PD research and has contributed more than $1.5 billion since its inception.
PD is the world’s second most prevalent neurodegenerative disorder, and there are currently no options on the market to cure or prevent the disease. Seelos’ SLS-004 utilizes “CRISPR-dCas9 gene editing to modulate the expression of the SNCA gene.” The expression is believed to be a significant risk factor for PD.
CEO Raj Mehra added, “The selection of SLS-004 to receive grant funding from The Michael J. Fox Foundation is a strong validation of our program and should significantly raise the profile of our program. We look forward to sharing additional data from our ongoing preclinical studies later this year.”
However, there’s also another catalyst sending shares of psychedelics stocks higher.
Why Are Psychedelics Stocks Up Today?
Researchers released a new study in the JAMA Psychiatry journal today. The study highlighted a case in which adults with alcohol use disorder (AUD) were given a combination of psilocybin and psychotherapy. The effects of the two components “curbed drinking” in the adults for at least eight months. Roughly half of the adults in the study stopped drinking entirely; in some cases, the adults stopped drinking entirely.
Twice as many adults in the psilocybin group reported giving up drinking compared to the placebo group. Scientists confirmed the claims by checking hair and nails for ethyl glucuronide, a byproduct of alcohol metabolism.
Center for Psychedelic Medicine Director and lead author Michael Bogenschutz explained, “That means that it’s not that we’re masking symptoms of the disorder. It means that people have really changed in some way. That’s really exciting.”
The study adds to existing research that psilocybin paired with psychotherapy can treat a variety of disorders, such as AUD, post-traumatic stress disorder (PTSD) and depression.
On the date of publication, Eddie Pan did not hold (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.