Over the past few years, mental health has come to the forefront as a significant health issue, and regulatory agencies around the world are increasingly becoming open to the idea of allowing large-scale human trials of solutions to the same through psychedelics and other similar treatments.
Until now, psychedelic drugs such as MDMA or magic mushrooms were considered serious illegal drugs. However, the FDA, the most significant drug regulatory body globally, recently approved psychedelics for large-scale human trials and gave it the designation of a breakthrough therapy and encouraged researchers to drive innovation in the field. As research and investments in psychedelics increased over the past few years, their effectiveness in treating mental health conditions such as anxiety or depression is becoming clear.
Over the past decade, we have seen cannabis stocks explode and create billions in wealth on the back of legalization across various jurisdictions worldwide. Psychedelics are on the cusp of a similar breakthrough.
The biggest mental health issue globally is depression, which affects north of 250 million people across the globe. Depression has been heavily exacerbated since social media went mainstream, as seen by the doubling of teenage depression rates in the United States. Further, the onset of the pandemic made things worse due to the effects of lockdowns or social distancing.
Certain parts of the US have already legalized certain psychedelics, like psilocybin, which Denver first legalized, Colorado in 2019, following which multiple jurisdictions and states legalized it. However, most legalizations have been of only plant and fungi-based psychedelics.
Canadian Psychedelic Stocks
Many companies in the list below research formulations based on psilocybin, a hallucinogen found in magic mushrooms.
Here are some of the best psychedelic stocks to invest in –
PharmaTher Inc. (CSE: PHRM)
Market Capitalization – C$43.9 million
PharmaTher is a Canadian drug development company that is engaged in psychedelic drug development for treating depression. In June this year, the company announced that it had applied to the FDA for preliminary approval of its Ketabet drug, a derivative of ketamine.
The company claims that its drug can be an effective depression treatment. PharmaTher also has a prolific pipeline of ketamine derivatives to treat ALS and Parkinson’s Disease, the former in the pre-clinical stage while the latter is in Phase 1&2.
However, what is interesting is the company’s under-development microneedle patch drug delivery system, which people can use to administer a multitude of psychedelics drugs from PharmaTher or any other medication from other companies in a painless manner.
Since the company is still in the development phase, no operating financials are available at this moment. However, PharmaTher has returned 215% for investors over the past month.
Mind Medicine (NEO: MMED.NE)
Market Capitalization – C$1.039 billion
Mind Medicine is a Canadian medical technology and drug development company developing its drug discovery software and psychedelics. The company recently announced encouraging results of a drug combined with MDMA and LSD to boost mental performance.
Mind Medicine acquired HealthNode, a machine learning startup that uses AI to accelerate drug development. The company also has a partnership with Nextage Therapeutics to develop innovative drug delivery products.
Mind Medicine has raised north of $200 million to date and is currently sitting on a cash pile of $160 million. However, cash burn is high due to the capital-intensive nature of R&D. Prospective investors should expect dilution as the company progresses due to subsequent capital raising.
Mind Medicine has returned 173% for investors over the past 12 months.
Cybin (NYSE: CYBN)
Market Capitalization – C$420.6 million
Cybin is a Toronto-headquartered psychedelic drug development company that uses technologies such as AI to make drug discovery more efficient and effective. Cybin has a three-pillar strategy that involves advanced drug discovery, disruptive drug delivery, and the creation of overall mental health experiences through the establishment of wellness centers. The company has four drugs in its pipeline that target health issues such as depression, eating disorders, anxiety disorders, and alcohol abuse. The drugs are mainly in pre-clinical stages or phase 1/2. The company aims to administer medications through films or inhalations.
The company has partnerships with industry leaders for leading neurology software, the establishment of health wellness centers, and drug development. For example, its partnership with med-tech company Kernel will allow it to use advanced medical machinery to measure brain activity in a highly granular manner post-administration of the drug being tested. As a result, the stock has returned 224% for investors over the past 12 months.
Field Trip Health (TSE: FTRP)
Market Capitalization – C$320.2 million
Field Trip Health is a Canadian mental health wellness company engaged in developing psychedelic drugs and experiences. The company is very innovation-focused and is involved in cutting-edge research into the chemical/biological makeup of psilocybin. Field Trip is leveraging its research to make synthetic psychedelic compounds that are far more effective at treating mental health issues while reducing side effects. Field Trip has filed multiple patents on their developments that are pending approval.
An exciting aspect of the company’s business is its digital mental wellness products that the company plans to use in conjunction with the psychedelics that it is bringing to market. This will allow it to cater to a far bigger audience, at it will not be dependent on physical wellness centers. Field Trip Health also has 20 physical health centers under construction across the US.
Field Trip Health has approximately $100 million in cash. Since the company is in development, there are no operational financials at this point. However, the company has returned 110% YTD for investors.
Numinus Wellness (CVE: NUMI)
Market Capitalization – C$142.38 million
Numinus Wellness is a psychedelic drug development and mental health therapy company. The company has four main branches, the first being drug development in which the company researches and develops psychedelic compounds based on those found in magic mushrooms, the second is psychotherapy, where the company uses psychedelics such as psilocybin/LSD/MDMA/etc. to treat health issues like anxiety, depression, eating disorders, substance abuse, etc., the third is psychedelic integration, where the company uses its expertise to consult those with issues such as those mentioned above on the use of psychedelic treatments. The fourth is ketamine therapy to treat various mental health disorders.
The company also recently acquired MindSpace Psychology services early this year to build a network of physical wellness centers across North America. In addition, Numinus holds a license for the possession, sale, testing, and distribution of psychedelics from Health Canada and was the first company from its sector to be granted regulatory approval for the same.
In FY20, the company reported C$881K in revenue (up 719% YoY) and a net loss of C$9.6M (down 32% YoY). In Q2’21, the company reported revenue of C$562K (up 159% YoY) and a net loss of C$4.82 million (down 44.93% YoY). As the company is still in R&D, no meaningful operating financials are available at the moment. The company has cash on hand of C$63.23 million. Numinus has returned a 100% for investors over the past year.
Compass Pathways (NASDAQ: CMPS)
Market Capitalization – C$1.31 billion
Compass Pathways is a research-focused psychedelic drug development company that is focused on psilocybin. Compass is one of the largest companies in the psychedelic sector in terms of market capitalization. In addition, the company is engaged in thorough human trials across hundreds of patients across multiple continents.
As of now, the company is primarily engaged in R&D and has not commercialized any products. However, digging more into its R&D, the company is carrying out the most extensive human trials for a specific type of depression, treatment-resistant depression, which is a health disorder in which patients are non-responsive to at least two types of medications or treatments; these patients represent a massive market of 100 million patients with unmet medical needs. The company’s clinical trials included 216 patients across 22 diverse jurisdictions.
Compass has multiple fruitful partnerships that augment its research capabilities; for example, its partnership with Mindstrong helps leverage its digital biomarker technology for deep research. The company also has a psychedelic therapy training program for psychiatric professionals, which it can monetize later, and is a differentiating factor between this and other companies. Last quarter, the company acquired an intellectual property portfolio of psychedelic compounds developed with a partner; the deal’s price was undisclosed.
Compass has lost nearly 10% in value over the past 12 months. The company has revenue and reported a net loss of $60.33 million (down 207% YoY). In Q2’21, the company reported a net loss of $17.53 million (down 7.87% YoY). Compass has cash on hand of $316 million as of Q2’21.
Seelos Therapeutics (NASDAQ: SEEL)
Market Capitalization – $229 million
Seelos Therapeutics is a psychedelic drug discovery headquartered in Nevada. The company’s goal is to address serious health issues like ALS, ASIB (Acute Suicidal Ideation Behaviour), PTSD (Post Traumatic Stress Disorder), Parkinson’s Disease, Asthma, and other more common disorders like anxiety and depression, etc.
The company currently has a pipeline of 4 treatments – ketamine, gene therapy, trelahose, and peptidic inhibitor. Their ketamine drug is aimed at treating ASIB, PTSD, and depression. Seelos’ gene therapy treatment aims to treat Parkinson’s, muscular and spinal atrophy, etc. Finally, Trelahose is aimed at treating ALS, and its peptidic inhibitor is also for Parkinson’s.
Seelos has returned 135.7% for investors over the past 12 months. The company currently has no revenues and reported a net loss of $19.1 million in FY20 (up 62.73% YoY) and $8.86 million (down 137.5% YoY) in Q2’21. The company has cash-on-hand of $87.2 million as of Q2.
With increasing social media use and distance working, cases of depression and anxiety will move upwards, unfortunately. Further, increased R&D in psychedelics can result in better and more effective drugs, boosting usage and growing legalizations. These factors collectively make psychedelics a desirable sector to invest in, especially when considering the massive wealth creation that the similar cannabis sector has seen in the past few years.
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Mushroom And Psychedelic Stocks Canada
A perfect storm brews for shareholders of a handful of publicly-traded companies in the psychedelic space, along with continuing medical research, legalization reforms, and advances in psychedelic substances such as psilocybin and magic mushrooms, ayahuasca, peyote, ketamine, DMT, LSD and MDMA. That is why investors should begin their due diligence to establish a company position before rushing to the mainstream. First, we will look at some of the underlying supply and demand situations that have driven up share prices in the psychedelic space.
We have said it before, and we will do it again: the real money in psychedelics is made from FDA-approved drugs to treat depression and mental health. Psychedelic equities are a fast-moving sector dominated by companies that many analysts consider speculative and overpriced. We believe that many psychedelic companies will continue defying investment rules and making their way to higher prices in 2021 and beyond. As a result, new leaders are emerging as interest grows in how psychedelics can improve mental health, both mentally and physically.
Estimates of the potential of psychedelics are responsible for the rise of companies working in this area to develop drugs made from psilocybin, the hallucinogenic compound found in magic mushrooms. In addition, Psychedelic biopharmaceutical companies are engaged in developing drugs and therapies against mental illness and addiction. Regulatory support, encouraged by studies confirming the claimed health benefits of psychedelics, should set the industry on the path to future growth.
The company also plans to develop new treatments for Parkinson’s, depression and general pain. Psyched Wellness is a dietary supplement company that offers extracts and natural oil products. The company plans to focus on ketamine, its psychedelic of choice, to explore research potential.
The company is investigating the use of its 18-MC psychedelic drug candidate to help combat opioid addiction. In addition, Ehave Psychedelic, a digital therapeutics company that has developed a Ketadash delivery platform, has transferred its 10% stake to Psychedelitech Inc., the owner of the PsyTech Conference, to its subsidiary Mycotopia Therapies. The company specializes in evidence-based research and offers individual psychotherapy studies with psychedelic drugs, supported by data-gathering algorithms designed to help psychedelic physicians.
The company recently completed its first commercial harvest of psilocybin mushrooms from its facility in Jamaica. This week, the company also made the first commercial export of legal psilocin mushrooms from its Canadian plant. In addition, the company has its facility under Health Canada’s Schedule 1 dealer license so that it can import its products.
Last year, Health Canada began expanding access to mushrooms containing psilocybin. As a result, the first company to develop medical treatment for psychedelic drugs such as LSD and Ketamine, the active ingredients in magical mushrooms, is ready to be listed on the Canadian stock exchange. In addition, Canada is currently legalizing psychedelic researchers who can use mushrooms for their compounds and extracts.
This week the world’s first publicly traded fund for psychedelic pharmaceutical companies debuts in Toronto. The investment industry tries to capitalize on the growing interest in future mental health treatments with the drugs. A sector that has attracted Peter Thiel’s money and video companies working on drugs containing compounds like psilocybin, the substance in magic mushrooms that produce psychedelic effects, is increasing. The fund is due to start trading on the NEO Exchange on Wednesday, its operator said.
In the early stages of the bull market, investors bet on the possibility that drugs containing compounds like psilocybin, the substance in the magic mushrooms that produce psychedelic effects, could disrupt the $70 billion market for mental health treatments. Drug trials are ongoing, and full approval by the FDA and other regulators worldwide is not guaranteed. Nevertheless, the spread of MindMed shares and other psychedelic stocks is similar to marijuana stocks in Canada and the United States.
Legalizing marijuana has strengthened Canada’s economy and created enormous wealth for early investors. The company is led by Shark Tank CEO Kevin OLeary and the legal marijuana pioneer Bruce Linton, founder and former CEO of Canopy Growth. Recently, FDA-backed ATAI Life Sciences filed for an initial public offering, backed by a handful of psychedelic drug developers and backed by billionaire investor Peter Thiel.
Thanks to new startups, the small-cap market has been swamped by a deluge of psychedelic stocks to watch. As a result, a growing list is available on the Psychedelic Stocks to Watch Investing News Network. With this in mind, here is our list of 3 psychedelic stocks for investors on the watch list.
The three psychedelic stocks that should be on every investor watch list are subject to change so that you can find the latest information on the company’s IR website. Psychedelic medicine involves psychedelic substances such as psilocybin chemicals, magic mushrooms, MDMA and LSD ingredients. Still, to compare companies that use one type of mushroom, this list is divided into two segments: functional psychedelics (i.e. There are no psychedelic penny shares on this list, but there are some magic mushroom penny shares traded on the OTCBB market.
MindMed is a neuropharmaceutical company whose immediate goal is to address the opioid crisis by developing a non-hallucinogenic version of psychedelic ibogaine. The company has also launched an official app that accompanies its treatments and offers patients activities and meditation techniques that match the psychedelics. Psychedelic medicine involves using psychedelic substances such as psilocybin, chemical substances such as magic mushrooms, MDMA, LSD and other psychedelics. In addition, there are pharmaceutical companies such as We Shrooms that are booming.
The company dedicates its psychedelic space to the Psychedelic Spotlight, presenting current developments in the psychedelic industry. Despite the brutal market conditions faced by the company in its first week of trading, it performed well, with SHRM up 12.8% before closing its first week at $7.9.
The last thing you need to know about investing in Canadian psychedelic stocks (or psychedelic stocks) is that you have to go all-in. I was lucky enough to be able to make a risky bet on a company that might or might not be suitable for me.
Kevin OLeary, a former investor at MindMed and chairman of OSares Investment Relationships and Horizon, says he is looking for companies that have done several studies and are attracting capital. If you decide to invest in psychedelic stocks, make sure you limit your risk by controlling the position sizes of these stocks and not adding mushrooms to your portfolio.