Since the Compass Pathways NASDAQ IPO in Mid-September, Psychedelic Stocks Have Gone on an Absolute Tear Racking Up Eye-Popping Gains in the Process
As We Approach the End of 2020, Let’s Take a Look Back and Highlight the Psychedelics Industry’s Most Important Regulatory Developments as Well as the Sector’s Top Performing Psychedelic Stocks
The psychedelics market has grown by leaps and bounds in 2020. The IPOs of MindMed (NEO: MMED) (OTCQB: MMEDF) (DE: MMQ) and Champignon Brands (CSE: SHRM) (OTCQB: SHRMF) (FRA: 496) in early March of this year officially gave birth to the new psychedelics sector.
Following a turbulent summer, which saw the emerging sector struggle to find its footing, the blockbuster IPO of industry heavyweight Compass Pathways (NASDAQ: CMPS) reignited investor interest in the space sending Psychedelic Stocks soaring to incredible new heights.
The meteoric rise of Psychedelic Stocks has been a bright spot in an otherwise tumultuous 2020 year. While COVID-19 continues to rage on throughout the world, the pandemic has undoubtedly helped shine a spotlight on the vital work being done by leading Psychedelics companies, specifically in the areas of mental health and addiction.
The industry has also experienced significant breakthroughs on the regulatory front, which, as a result, has led to a growing number of studies focused on creating new cutting-edge psychedelic medicines.
Following a roadmap similar to the one that led to the rise of Cannabis Stocks, the modern-day psychedelics industry really began to take shape after the U.S. FDA in 2017 granted breakthrough therapy designation for MDMA-assisted psychotherapy to treat PTSD. In 2018 and 2019, the FDA also gave two additional psychedelic programs studying psilocybin to treat depression with its breakthrough therapy designation.
Currently, the psychedelic substances psilocybin, ketamine and MDMA have all been fast-tracked by both the U.S. FDA and Health Canada.
In 2019, the FDA approved Spravato (esketamine) nasal spray, a product of Johnson & Johnson (NYSE: JNJ) owned Janssen Pharmaceutical, for adults with treatment-resistant depression, and in 2020, Health Canada followed suit approving Spravato esketamine for Major Depressive Disorder.
This summer in Canada, the Honourable Patty Hajdu announced her landmark decision, responding to a petition from four terminally ill cancer patients receiving end-of-life care, officially granting them permission to legally carry and consume psilocybin mushrooms, aka Magic Mushrooms.
Health Canada followed that up by announcing last week its intention to revise the Special Access Programme (SAP) to permit MDMA and psilocybin-assisted psychotherapy access. The proposed move would potentially help many Canadians suffering from mental health issues that have not responded to existing therapies.
South of the border, the American psychedelics reform movement, which began with Denver’s decriminalization of psilocybin in 2019, continues to gain momentum. In 2020, Oakland and Santa Cruz followed Denver’s lead by also decriminalization psilocybin.
The 2020 U.S. election brought more good news for the industry after Oregon’s Measure 109 (Psilocybin Therapy Initiative) was approved by the state’s voters. The Psilocybin Therapy Initiative allows for the development of a state-regulated program for psilocybin-assisted therapy, which is intended to help Oregonians with mental health conditions such as PTSD, addiction, depression and anxiety.
According to Decriminalize Nature, there are now psilocybin decriminalization programs in the works in over 100 different cities across the United States.
Like we experienced in the Cannabis Boom, all of the positive psychedelics regulatory developments in 2020 have helped create what investors are now referring to as the “Shroom Boom.” With that said, let’s take a look at the industry’s top-performing Psychedelic Stocks of 2020.
- 2020 Open: $0.055
- Current Price: $0.83
- 2020 YTD Gain: +1,409.09%
- 52-Week Low: $0.035
- 52-Week High: $0.92
- Max Gain (Low to High): +2,528.57%
Revive Therapeutics is a life sciences company focused on researching and developing therapeutics for infectious diseases and rare disorders. The company is prioritizing its drug development efforts to take advantage of several regulatory incentives awarded by the FDA, such as Orphan Drug, Fast Track, Breakthrough Therapy and Rare Pediatric Disease designations. Currently, Revive is exploring the use of Bucillamine for the potential treatment of infectious diseases, with an initial focus on severe influenza and COVID-19.
With its recent acquisition of Psilocin Pharma Corp., Revive is advancing the development of psilocybin-based therapeutics in various diseases and disorders. Revive’s cannabinoid pharmaceutical portfolio focuses on rare inflammatory diseases. The company was granted orphan drug status designation by the FDA for the use of Cannabidiol (CBD) to treat autoimmune hepatitis (liver disease) and to treat ischemia and reperfusion injury from organ transplantation.
- 2020 Open: $0.60
- Current Price: $6.02
- 2020 YTD Gain: +903.33%
- 52-Week Low: $0.28
- 52-Week High: $6.47
- Max Gain (Low to High): +2,210.716%
MindMed is a psychedelic medicine biotech company that discovers, develops and deploys psychedelic-inspired medicines and therapies to address addiction and mental illness. MindMed is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances, including psilocybin, LSD, MDMA, DMT and an ibogaine derivative, 18-MC. The company’s executive team brings extensive biopharmaceutical experience to the firm’s groundbreaking approach to developing the next-generation of psychedelic-inspired medicines and therapies. Also, MindMed has attracted investment dollars from several high-profile investors, including Shark Tank billionaire Kevin O’Leary and Bruce Linton, the founder and former CEO of cannabis industry titan Canopy Growth (TSX: WEED) (NASDAQ: CGC) (FRA: 11L1).
- 2020 Open: $0.22
- Current Price: $1.01
- 2020 YTD Gain: +359.09%
- 52-Week Low: $0.22
- 52-Week High: $1.74
- Max Gain (Low to High): +690.91%
Champignon Brands is pursuing the development and commercialization of rapid onset treatments capable of improving the health of those suffering from mental health conditionals such as depression, PTSD and addiction. Champignon is a research-driven company specializing in breakthrough ketamine treatments for depression and other mental health conditions, as well as delivery platforms for other health products.
The company, led by its Chairman and CEO Dr. Roger McIntyre, works closely with its subsidiaries, such as AltMed and the CRTCE Clinic, which is wholly owned by AltMed. According to the website Expertscape, Dr. McIntyre is one of the world’s top depression researchers. Expertscape lists Dr. McIntyre as being in the top 0.00038% of 261,223 published authors worldwide on depression.
- 2020 Open (Mar. 30/20): $3.31
- Last Close (Dec. 11/20): $6.60
- 2020 YTD Gain: +99.4%
- 52-Week Low: $2.25
- 52-Week High: $7.00
- Max Gain (Low to High): +211.11%
Field Trip Health is a global leader in the development and delivery of psychedelic therapies. The company operates through its three separate divisions: Field Trip Health, Field Trip Discovery and Field Trip Digital. The Field Trip Health division is focused on the company’s mental health psychedelic therapy centers. Field Trip Health currently operates three revenue-generating clinics located in Toronto, New York and Los Angeles. The company has an ambitious expansion strategy, which includes an aggressive rollout of 75 clinics by 2023.
Field Trip Discovery is a leader in the development of the next generation of psychedelic molecules and is also conducting advanced research on plant-based psychedelics, including psilocybin-producing fungi. Field Trip Digital was created to develop new digital tools that make consciousness expansion therapy and resources available worldwide. The Digital division’s goal is to provide everyone with the same access to the company’s healing and growth benefits.
- 2020 Open: $23.40
- Current Price: $59.37
- 2020 YTD Gain: +153.72%
- 52-Week Low: $22.51
- 52-Week High: $61.69
- Max Gain (Low to High): +174.06%
Compass Pathways is a UK-based mental health care company dedicated to improving the lives of those suffering from mental health challenges not helped by current treatments. Compass has pioneered the development of a new model of psilocybin therapy. The company’s proprietary formulation of synthetic psilocybin, COMP360, is administered in conjunction with psychological support.
In 2018, COMP360 was designated as a Breakthrough Therapy by the FDA for treatment-resistant depression (TRD). Currently, Compass is conducting a randomized controlled phase 2B clinical trial of psilocybin therapy for TRD in 20 sites across Europe and North America. Compass Pathways is headquartered in London, England, and has offices in New York.
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Champignon Brands was previously a client of The Cannabis Investor. The Cannabis Investor holds a position in Champignon Brands.