Are you ready to take a trip into the world of investing that’s anything but ordinary? In today’s financial landscape, the term “psychedelic stocks” might sound like a wild departure from traditional investments, but it’s a market that’s been gaining incredible momentum in recent years.
The growing interest in psychedelics isn’t about chasing rainbows and unicorns; it’s about a potential revolution in mental health treatment and the pursuit of altered states of consciousness for therapeutic purposes.
In our blog post, we’ll delve into this fascinating corner of the stock market, where science, wellness, and investment opportunity intersect. We’ll explore the companies that are at the forefront of psychedelic research, development, and innovation.
The psychedelic renaissance is driven by the promise of treating mental health disorders like depression, anxiety, PTSD, and addiction, as well as the exploration of human consciousness.
Recent clinical studies have shown remarkable results, and governments are beginning to reconsider their stance on these substances. As a result, savvy investors are eyeing this emerging sector as the next big thing in the world of biotech and pharmaceuticals.
So, fasten your seatbelt and get ready to embark on a journey that could not only diversify your portfolio but also contribute to a paradigm shift in the way we approach mental health and well-being.
Top 3 Psychedelic Stocks to Consider
Johnson & Johnson
Johnson & Johnson (NYSE: $JNJ), a prominent American pharmaceutical giant, has captured the attention of savvy investors for its involvement in the burgeoning psychedelic stock sector.
Notably, in March 2019, Johnson & Johnson’s nasal spray, SPRAVATO (esketamine), marked a pivotal moment by clinching the FDA’s Breakthrough Therapy designation.
This innovative drug stands as a beacon of hope for individuals grappling with treatment-resistant depression.
On March 1, Guggenheim initiated coverage of Johnson & Johnson (NYSE: JNJ) with a Neutral rating and set a price target of $161.
While Guggenheim applauds Johnson & Johnson’s (NYSE: JNJ) strategic move to separate its Consumer Health division and acknowledges the promising trajectory of its MedTech segment, questions linger regarding the outlook for its Pharma business.
The firm harbors concerns about impending patent expirations, including Stelara later this year, and foresees sales figures falling short of the management’s ambitious target of $60 billion in Pharma sales by 2025.
Guggenheim’s projections also cast a shadow on management’s optimism regarding the potential peak annual sales of various pipeline assets, which they’ve touted to reach $1 billion or even $5 billion.
Mind Medicine (NASDAQ: $MNMD), also known as MindMed, made history in March 2020 as the pioneer psychedelic drug manufacturer to launch an initial public offering on Canada’s NEO Exchange, a mere eleven months after its establishment in May 2019.
At the forefront of their initiatives is Project Lucy, MindMed’s flagship program, which is currently in phase 2a clinical trials for anxiety treatment using LSD therapy. The company’s portfolio also encompasses two other promising early-stage candidates.
The first is 18-MC, an innovative non-hallucinogenic drug rooted in the psychedelic compound ibogaine, showing potential in addressing opioid withdrawal.
Additionally, they are exploring the therapeutic potential of LSD microdosing for adult attention deficit hyperactivity disorder.
MindMed’s quest for knowledge extends worldwide as they collaborate with the University Hospital Basel in Switzerland to delve into the applications of LSD and other psychedelic substances, solidifying their position as a key player in the emerging field of psychedelic medicine.
Compass Pathways (NASDAQ: $CMPS) traces its origins back to 2015 when George Goldsmith and Ekaterina Malievskaia established The Compass Trust Limited, a non-profit organization focused on advancing psilocybin therapy for individuals grappling with end-of-life anxiety.
This altruistic endeavor eventually evolved into Compass Pathways, a for-profit company, the following year. In a significant milestone, the company went public, listing its shares on the Nasdaq stock exchange in September 2020.
The drug manufacturer made history by conducting the largest-ever clinical trial for psilocybin therapy during its phase 2 study, assessing the effectiveness of COMP360 in the treatment of individuals with treatment-resistant depression.
Compass Pathways has ambitious plans to advance this groundbreaking therapy into late-stage testing in 2022, marking a pivotal moment in the world of mental health treatment. Worth noting is that COMP360 represents the company’s sole pipeline candidate.
Furthermore, Compass Pathways is exploring the potential applications of COMP360 in the treatment of other disorders. In a promising development, the company has initiated a phase 2 study to assess the therapy’s efficacy in addressing post-traumatic stress disorder (PTSD) at The Institute of Psychiatry, Psychology & Neuroscience (IoPPN) at King’s College London.
Additionally, there are ongoing investigator-led studies investigating COMP360 in various other indications, including major depressive disorder. The future holds exciting possibilities for Compass Pathways and the evolving field of psychedelic medicine.
How To Buy Psychedelic Stocks
- Step 1: Choose a broker
- Step 2: Choose an investment
- Step 3: Place your order
- Step 4: Monitor your investment
From industry pioneers like Compass Pathways and MindMed to promising newcomers, these companies are at the forefront of research and development in the psychedelic medicine field.
As we’ve discussed, it’s important to approach this market with caution. The regulatory landscape is still unfolding, and the long-term success of psychedelic stocks is not guaranteed.
It’s crucial to do your own due diligence, stay informed about legal developments, and diversify your investments.
While the potential for substantial growth is undoubtedly appealing, remember that investing in psychedelic stocks involves risk, and it may not be suitable for every investor.
As the industry matures, it will be fascinating to see how these companies contribute to mental health treatments and potentially generate substantial returns for those who believe in their mission and vision.
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