Psychedelics could be a game-changer in treating mental health issues. All of which could help create big opportunities for top psychedelic stocks.

According to the American Psychological Association, study results using psychedelics, such as MDMA, have been “so robust” that the Food and Drug Administration has targeted Aug. 11 to decide if MDMA, along with therapy, could be the first psychedelic-assisted therapy approved in the country. 

Granted, an FDA advisory panel did vote against the use of MDMA. 

However, according to a STATNews.com report, there is “substantially more than a 50/50 chance” that the FDA would dismiss its advisers’ perspective and approve the first currently prohibited psychedelic come August.”

There’s no arguing the advisory panel vote is a setback. But there is hope the FDA will still vote to approve the use of psychedelics by Aug. 11. And, even with the risk of potential rejection, some of the top psychedelic drug companies still have substantial potential.

Here are three psychedelic stocks you may want to buy on the cheap.

Atai Life Sciences (ATAI)

Based in Germany, Atai Life Sciences (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company focused on mental health issues. Analysts are bullish: H.C. Wainwright analyst Patrick Trucchio has a “buy” rating on the stock with a price target of $15.

Better, the company recently posted strong results from a Phase 2a trial of BPL-003, a novel, synthetic, patent-protected benzoate salt formulation of 5-MeO-DMT (mebufotenin) administered intranasally, as noted in a press release.

“Initial results demonstrated that a single 10mg dose of BPL-003 was well-tolerated and resulted in a rapid onset and durable antidepressant effect in patients living with TRD [treatment resistant depression],” says the company.

The company is also seeing favorable results from a Phase 1/2a trial of ELE-101 for major depressive disorder (MDD). So far, ELE-101, an IV formulation of psilocin, “indicates its potential as a promising candidate for treating depression,” as noted by co-CEO Srinivas Rao.

GH Research (GHRS)

Year to date, GH Research (NASDAQ:GHRS) ran from a low of $5 to $11.75. It’s still a buy on recent weakness. Plus, analysts at Canaccord have a buy rating on the stock, with a $31 price target. The firm notes that GHRS is on track to post top-line data from its Phase 2b trials of GH001 for mebufotenin treatment-resistant depression in the third or fourth quarter of the year. 

The company also expects to complete its Phase 2a clinical trial of GH001 for postpartum depression by the third quarter.

With earnings, GHRS didn’t report any revenue. However, its earnings per share loss of 15 cents beat expectations by 7 cents. Plus, with $214 million in cash, cash equivalents and other securities, it currently has enough cash through 2026.

Currently consolidating at around $11.75, I’d like to see GHRS initially retest its prior high of $15 in the near term – especially as it nears study results and hopeful approval from the US FDA.

Cybin (CYBN)

Another one of the top psychedelic stocks to buy is Cybin (NYSEAMERICAN:CYBN), a biopharmaceutical company using psychedelics to treat mental health issues. Earlier this year, the company received FDA Breakthrough Therapy Designation for CYB003 for the treatment of major depressive disorder. 

If approved, says the company, CYB003 would be the first known “adjunctive psychedelic-based therapeutic for the treatment of MDD.” Even better, the company said, “Its Phase 2 trial of CYB003 in MDD demonstrated robust and sustained improvement in depression symptoms at four months with 75% of participants receiving two 16mg doses achieving remission and no longer showing signs of depression.”

The company also expects to initiate enrollment for Phase 3 trials this summer. It also recently initiated a Phase 2 study of its deuterated DMT molecule for the treatment of generalized anxiety disorder, which impacts about 6.8 million adults in the U.S., or 3.1% of the population.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.