The Psychedelic Story All Investors Should Know

Oct 26, 2022
red agaric fly mushrooms on a tree in the forest

Psychedelic stocks could see massive attention, near-term.

Especially those associated with psilocybin.

Here’s what we already know.  Compass Pathways is preparing to launch Phase 3 human trials with psilocybin by the end of this year.  

They’ll enroll 1,000 participants.  According to News Atlas, “The landmark Phase 3 trial follows the company’s announcement of successful Phase 2B results late last year. Those results encompassed 233 patients with treatment-resistant depression randomly split into three dosage arms: 25 mg, 10 mg, and 1 mg. Over the 12-week follow-up, Compass reported statistically significant improvements in measures on a depression scale after a single 25-mg psilocybin dose, compared to the two lower dose groups.”

In short, the psychedelic story is coming back strong.  

Not only has the industry seen U.S. FDA support, and a good deal of literature from top schools in the nation, but even Congress is trying to get on board.  Sen. Cory Booker, for example, tweeted, “Massive breakthroughs in medical studies with psilocybin and MDMA are showing strong promise for patients with PTSD, trauma, addiction, and serious depression. In the past, the failed War on Drugs has criminalized people who used these drugs safely for treatment.” ‘

He would also tweet, “With my Right to Try bill, I am hoping we can quickly make these safe and effective treatments available to help people in need.” 

With regards to the US FDA, in 2019, the agency recognized psilocybin as a potentially “breakthrough therapy” for depression.  Better, clinical studies from  Johns Hopkins Medicine, and New York University appear to already be showing positive results with psychedelics.

When it comes to these stocks, many are unknown and cheap at the moment.  But that could change, as professionals wake up to the potential mental health benefits of psychedelics.