10 Best Psychedelic Companies to Watch
In this article, we discuss the 10 best psychedelic companies to watch. If you want to skip our detailed analysis of these companies, go directly to the 5 Best Psychedelic Companies to Watch.
Novel therapies and psychedelic treatments are rapidly gaining popularity across large swathes of North America as the awareness of mental health disorders and the revolutionary effects of psychedelics in their treatment become more mainstream. According to a study by Data Bridge Market Research, the global market for psychedelics is growing and will reach a value of over $6 billion within the next five years, compared to $2 billion in 2019. This represents a compound annual growth rate of over 16% for the industry.
A lot of companies are vying for space in the psychedelics market with several going public in the past few months. Some already-established early leaders of this boom are COMPASS Pathways plc (NASDAQ: CMPS), Field Trip Health Ltd. (OTC: FTRPF), and Cybin Inc. (OTC: CLXPF), among others. COMPASS Pathways plc (NASDAQ: CMPS) recently raised $144 million through an equity offering. It is one of the most recognizable brand names in the psychedelic industry already.
Similarly, Field Trip Health Ltd. (OTC: FTRPF), the Toronto-based psychedelics firm, is already establishing itself as an innovator in the field by working on the development of cutting edge technology that will support psychedelic experiences. Field Trip Health Ltd. (OTC: FTRPF) listed on the Toronto Stock Exchange just three weeks back and has already applied for a listing on the stock market in the United States. The firm is one of the leading authorities on plant-based psychedelics in the industry.
Another company to watch for in the psychedelic space over the next few months is Cybin Inc. (OTC: CLXPF), another Toronto-based firm engaged in the development of psychedelic therapies. Cybin Inc. (OTC: CLXPF) recently announced positive pre-clinical results for a number of psychedelic molecules it was working on and has announced that it will participate in Grizzle Psychedelics Con on June 28. According to the firm, Doug Drysdale, the CEO of the company, would take part in a fireside chat at the event.
The emergence of psychedelics as a distinct branch of the health industry over the past few years has also turned heads in the biopharma sector, where giants such as Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY), and GlaxoSmithKline plc (NYSE: GSK) operate. Amid a surge in demand for antidepressants, one of the sources of revenue for these companies, the psychedelics breakthroughs in treating mental health disorders could very well represent a potential business opportunity for these companies in the near future. Eli Lilly and Company (NYSE: LLY) makes and sells Prozac, one of the most popular antidepressants, while Pfizer Inc. (NYSE: PFE) markets Zoloft, a sertraline used to treat depression and panic attacks. Some of the greatest strides in psychedelic research in the past few years have been made at the Johns Hopkins’s Center for Psychedelic and Consciousness Research, a facility set up by one of the oldest research institutions in the United States in September 2019. Already, the center, which was previously known as the Psychedelic Research Unit, and is backed by over $17 million in funding, has published 50 peer-reviewed papers on psychedelics that include 15 laboratory studies.
Psychedelics represent a truly novel approach to treatment of mental health ailments and have some way to go before they are formally accepted by the wider society. Change is always hard, and the finance world is witness to this. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Photo by Florian van Duyn on Unsplash
With this context in mind, here is our list of the 10 best psychedelic companies to watch. These were ranked based on the fundamentals of each firm, their relevance to the psychedelic industry, hedge fund sentiment, and the number of products in their drug pipelines.
Best Psychedelic Companies to Watch
10. Seelos Therapeutics, Inc. (NASDAQ: SEEL)
Seelos Therapeutics, Inc. (NASDAQ: SEEL) is placed tenth on our list of 10 best psychedelic companies to watch. The stock has offered investors returns exceeding 171% over the course of the past twelve months. The company is a clinical biopharmaceutical entity focusing on the development of novel therapeutics and technologies for treatment of diseases related to the central nervous system. The company is part of the first exchange traded fund on psychedelics. One of the lead drugs of the firm, SLS-002, for treating depression, is psychedelic-related.
On June 28, Seelos Therapeutics, Inc. (NASDAQ: SEEL) announced that it had been included in the Russell 2000 and Russell 3000 indexes. Raj Mehra, the CEO of the firm, announced the inclusion and said it would increase the exposure in the investment community.
At the end of the first quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $47 million in Seelos Therapeutics, Inc. (NASDAQ: SEEL), up from 4 the preceding quarter worth $1.3 million.
Just like COMPASS Pathways plc (NASDAQ: CMPS), Field Trip Health Ltd. (OTC: FTRPF), Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY), GlaxoSmithKline plc (NYSE: GSK), and Cybin Inc. (OTC: CLXPF), Seelos Therapeutics, Inc. (NASDAQ: SEEL) is one of the best psychedelic and healthcare companies to watch.
9. HAVN Life Sciences Inc. (OTC: HAVLF)
HAVN Life Sciences Inc. (OTC: HAVLF) is a biotechnology company based in Canada. It is ranked ninth on our list of 10 best psychedelic companies to watch. The company markets itself as the future of psychedelic medicine. Some of the products it offers include Cordyceps Perform, made up of cordyceps mushrooms to help lung and kidney function and fight against free radical cell damage, and Mind Mushroom, a four-mushroom offering that helps with Immunity and energy balance.
On May 17, HAVN Life Sciences Inc. (OTC: HAVLF) announced that it had entered into a deal with another biotech firm to purchase intellectual property related to LSD-linked drugs that may help with cluster headaches.
HAVN Life Sciences Inc. (OTC: HAVLF) signed the agreement for $1 million plus more than 10 million common shares subject to certain conditions. Tim Moore, the CEO of Havn, said on the occasion that the agreement marked a strategic shift for the firm.
Just like COMPASS Pathways plc (NASDAQ: CMPS), Field Trip Health Ltd. (OTC: FTRPF), Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY), GlaxoSmithKline plc (NYSE: GSK), and Cybin Inc. (OTC: CLXPF), HAVN Life Sciences Inc. (OTC: HAVLF) is one of the best psychedelic and healthcare companies to watch.
8. Mind Medicine (MindMed) Inc. (NASDAQ: MNMD)
Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) is a biotechnology company that focuses on psychedelic medicine to treat addictions and mental illnesses. Some of the psychedelic substances it is using to develop drugs include Psilocybin, LSD, MDMA, DMT, and others. It is placed eighth on our list of 10 best psychedelic companies to watch. The company’s shares have offered investors returns exceeding 1,000% over the course of the past year. The company is based in New York.
On June 28, Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) was included on the Russell 3000 Index. The share price of the firm jumped close to 5 % upon the inclusion. The index tracks the performance of the 3,000 largest companies in the United States.
On May 24, Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) entered into an agreement with Nextage Therapeutics for collaboration on development of psychedelic drugs. Nextage granted the biotech firm limited rights to intellectual property on these drugs as part of the deal.
Just like COMPASS Pathways plc (NASDAQ: CMPS), Field Trip Health Ltd. (OTC: FTRPF), Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY), GlaxoSmithKline plc (NYSE: GSK), and Cybin Inc. (OTC: CLXPF), Mind Medicine (MindMed) Inc. (NASDAQ: MNMD) is one of the best psychedelic and healthcare companies to watch.
7. Numinus Wellness Inc. (OTC: LKYSF)
Numinus Wellness Inc. (OTC: LKYSF) is a company that markets psychedelic psychotherapy for mental health problems. It is ranked seventh on our list of 10 best psychedelic companies to watch. The stock has returned more than 184% to investors in the past twelve months. The company has two separate divisions for psychedelics, one dedicated to laboratory services and the other to supportive therapies. It is based in Canada and has a market capitalization of over $150 million. It posted more than 650,000 in annual revenue last year.
In earnings results for the second fiscal quarter, posted on April 30, Numinus Wellness Inc. (OTC: LKYSF) reported a revenue of C$0.23 million, down close to 11% compared to the revenue over the same period in the previous fiscal year.
In the first fiscal quarter, the revenue for Numinus Wellness Inc. (OTC: LKYSF) had also been C$0.23 million. However, in the first fiscal quarter, this represented an increase of more than 76% compared to the revenue in the first fiscal quarter of the previous year.
Just like COMPASS Pathways plc (NASDAQ: CMPS), Field Trip Health Ltd. (OTC: FTRPF), Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY), GlaxoSmithKline plc (NYSE: GSK), and Cybin Inc. (OTC: CLXPF), Numinus Wellness Inc. (OTC: LKYSF) is one of the best psychedelic and healthcare companies to watch.
6. Atai Life Sciences N.V. (NASDAQ: ATAI)
Atai Life Sciences N.V. (NASDAQ: ATAI) is a biopharmaceutical firm concentrating on the development of drugs to treat different kinds of mental health disorders. These drug candidates, some which use psychedelic substances, include PCN-101 and RL-007, among others. The former is a treatment for resistant depression and the latter is for treatment of cognitive impairment because of schizophrenia. The firm is placed sixth on our list of 10 best psychedelic companies to watch.
Atai Life Sciences N.V. (NASDAQ: ATAI) is backed by famous investor Peter Thiel, who has invested in several incredibly successful technology companies over the years. The company went public earlier this month and finished the first day of trading valued at over $2 billion.
At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $782,000 in Atai Life Sciences N.V. (NASDAQ: ATAI), up from 1 in the previous quarter worth $118,000.
Just like COMPASS Pathways plc (NASDAQ: CMPS), Field Trip Health Ltd. (OTC: FTRPF), Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY), GlaxoSmithKline plc (NYSE: GSK), and Cybin Inc. (OTC: CLXPF), Atai Life Sciences N.V. (NASDAQ: ATAI) is one of the best psychedelic and healthcare companies to watch.
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Disclose. None. 10 Best Psychedelic Companies to Watch is originally published on Insider Monkey.
