9 Psychedelic Stocks to Watch For 2022

Could the psychedelics sector take off like the cannabis sector has?

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The usage of psychedelics like psilocybin, LSD, ketamine, and others are becoming more mainstream, especially with the initial steps to legalization getting moving across a number of states in the U.S. As a result, the psychedelics market is projected to grow 12.4% annually, reaching $10.75 billion in 2027. However, as you may remember from the takeoff of publicly traded cannabis stocks, the psychedelic stocks sector is a space with plenty of potential pitfalls for investors as it must overcome regulations, stigmas, and cultural concerns.

At the same time there are many high-reward opportunities that early adopters in the psychedelics industry are jumping into with psilocybin stocks ahead of what could be a explosive growth sector. Psychedelic stocks are in high demand right now, but, again, several risks face prospective investors in this space. Investors should keep a close eye on these nine psychedelic stocks to watch over the coming months.

Mind Medicine Inc. (NASDAQ:MNMD)

Mind Medicine (aka MindMed) is a pharmaceutical company in a clinical trial with an experimental LSD therapy. The treatment is in phase 2b trials. Simultaneously, MNMD has both addiction-focused and LSD micro-dosing studies entering phase 2. MindMed is also launching a new study to research the effectiveness of psychedelics on pain management in patients. MNMD aims to treat various symptoms of illnesses including depression, ADHD, and addiction. MindMed stock could provide long-term opportunities for investors if one or more of its pipeline treatments is approved. MNMD currently trades between $2-$3 per share.

Compass Pathways PLC (NASDAQ:CMPS)

Compass Pathways is researching the potential for psilocybin to be used for patients with treatment-resistant depression. Currently, in phase 2b testing, the COMP360 is synthetic psilocybin produced by CMPS. During this testing phase, COMP360 is taken while a therapist administers talk therapy to guide the patient through their experience with the medication. The outlook is positive, according to Compass Pathways press releases. Experimentation with the psychedelic supplements could prove to be a potential alternative for treating depression. In September of 2020, at $17 per share, Compass Pathways stock completed its public offering. Since the initial offering, CMPS has traded as high as $60 per share and seems to average out in the mid-to-high $30s at this time.

Seelos Therapeutics (NASDAQ:SEEL)

In 2016, SEEL was founded. In January of 2019, Seelos Therapeutics merged with Apricus Biosciences, which was a publicly-traded stock under the ticker APRI. Since the merger between the two companies, there have been four programs programs going through clinical testing under the Seelos Therapeutics name. First, an intranasal ketamine drug, SLS-002, is being assessed in a phase 2 study focused on the treatment of acute suicidal ideation and major depressive disorder. SLS-005 is also being researched by SEEL in phase 2b for the management of ALS and in phase 2 clinical trials for the management of Sanfilippo syndrome. Finally, Seelos Therapeutrics is testing SLS-006 in phase 2 and 3 trials for the treatment of Parkinson's disease. Pending approval of any/all of the treatments in the pipeline being approved, Seelos Therapeutics stock could provide significant upside for investors. SEEL currently trades in the $1.50 to $1.80 per share range.

Field Trip Health Ltd. (NASDAQ:FTRP)

Field Trip Health is researching and developing a synthetic psilocybin molecule called FT-104. FTRP has wishes to prove that FT-104 has comparable strength to psilocybin but is able to minimize the length of time that the patient experiences psychoactivity. In June of 2020, Field Trip Health investors received some great news. FTRP formally petitioned to register its common shares for public trading on the Nasdaq exchange. Already trading on the Canadian TSX exchange, the Nasdaq listing increased Field Trip Health stock's profile significantly. This increased attention and access to the U.S. markets skyrocketed FTRP from $5 CAD up to nearly $8 CAD per share. Now, Field Trip Health stock trades in the range of $4.50 to $5.50 CAD. 

Cybin Inc. (NYSE: CYBN)

Cybin is a Canadian-based company focused on the production of medicine to treat addiction, anxiety, and depression. CYB001 is in the initial stages of phase 2a trials. A formulation based on psilocybin, Cybin's compound has been found to produce significantly positive results when treating anxiety and depression in patients. The CYB001 medication and the related depression study are the primary drivers for Cybin stock right now. CYBN also has CYB003 and CYB004 developed from deuterated tryptamines and are currently in the pre-clinical trial phase. Cybin stock is currently trading between $1 to $3 per share.

Atai Life Sciences NV (NASDAQ:ATAI)

Atai Life Sciences is a fairly well-known company in the psychedelic stocks sector, primarily because the high profile Peter Thiel, a billionaire investor with a significant stake in the company. Founded in 2018 and publicly traded in June 2021, Atai Life Sciences has made substantial acquisitions of several major psychedelic companies. These acquisitions have resulted in ATAI becoming one of the largest and most mature companies in the psychedelic stocks sector. Atai Life Sciences is one of the largest shareholders of Compass Pathways, another publicly traded psychedelic stock on this list. ATAI currently has ten special programs in the pipeline, four of which are in clinical testing with the leader being RL-007 which is in a phase 2 clinical study. Atai Life Sciences stock is currently trading between $10 and $20 per share.

Enveric Biosciences Inc (NASDAQ:ENVB)

Enveric Biosciences is known for using CBD to treat the side effects of cancerous and other tumorous growths. As a pre-clinical and clinical-stage company, ENVB recently acquired MagicMed in its quest to expand its research and development of new compounds and treatments. This psychedelic stock is often considered a longer-term hold because of how newly listed the company is. However, paying close attention to ENVB's plan and research progress, Enveric Biosciences stock could be attractive to investors in the not-so-distant future. ENVB trades between $1 and $5 per share and has been on a bit of a downtrend since its IPO.

GH Research PLC (NASDAQ:GHRS)

GH Research is a Dublin-based research company studying the treatment of psychiatric and neurological disorders. GH001, an inhalable 5-MeO-DMT analog, is the psychedelic company's leader as a drug candidate. GH001 is currently in phase 2 trials with patients who demonstrate treatment-resistant depression. GH Research is currently experiencing outstanding fundraising milestones, which is leading to momentum for its clinical trials. GH Research stock IPO'd at an initial price of $16 per share and, at the time of going public, GHRS was priced at $22. Currently, GH Research stock trades between $20 and $30 per share.

Jaguar Health Inc (NASDAQ: JAGX)

Jaguar Health is a U.S.-based research company focused on the development and commercializing of human and animal gastrointestinal pharmaceuticals. Committed to plant-based solutions, JAGX has developed a library of nearly 2,300 medicinal plants. Recently, Jaguar Health started supporting the Entheogen Therapeutics Initiative, committed to using psychoactive plants to address mood disorders, addiction treatment, and other mental health ailments. Jaguar Health stock is currently trading between $1 and $5 per share.

 

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