Psychedelic stocks have seen remarkable progress in recent years, evolving from a fad to mainstream medicine. Several pharmaceutical companies are now investigating their potential therapeutic value. They’re also following regulatory pathways to gain approval for such treatments, too. Better, studies have shown promising results with psilocybin and other hallucinogens for mental health issues such as depression and schizophrenia. Hence, the case for psychedelics stocks to buy is as strong as ever.

The World Health Organization (WHO) pointed out that mental health disorders are the leading cause of disability worldwide, with roughly a billion people affected by some form of mental illness. Psychedelic pharmaceutical companies are answering this need by developing legal and potent drugs that meet regulatory approval standards. As a result, these organizations have seen an increase in investor interest and attention, similar to the surge in marijuana stocks following its growing acceptance in recent years.

MindMed (MNMD)

Psychedelic stocks, such as MindMed (NASDAQ:MNMD) are developing an extensive drug pipeline covering depression, addiction, and anxiety. These markets are set for substantial growth over the next several years. Better, if MNMD can advance its portfolio, it could significantly expand its revenue base.

Company CEO Rob Barrow is upbeat about the company’s trajectory this year. Following a year of strong execution, the firm is positioned to expand the potential of its generalized anxiety disorder (GAD) product candidate called MM-120. Moreover, it plans to commence the first clinical trial of its MM-402 program for autism spectrum disorder (ASD). With so much to look forward to this year, MNMD remains an excellent pick for the long haul.

COMPASS Pathways (CMPS)

Next up on the list of hot psychedelic stocks is Compass Pathways (NASDAQ:CMPS), which has made big strides in its mission to explore the potential of psilocybin therapy for individuals with end-of-life anxiety. CMPS also conducted the largest clinical trial in history involving its experimental therapy COMP360, designed to treat treatment-resistant depression or TRD. This groundbreaking therapy will advance into late-stage testing this year. Moreover, the firm is also evaluating the efficacy of this promising therapy for various other conditions, such as PTSD, MDD, and more. Most recently, it revealed positive data for COMP360 in treating Type 2 bipolar disorder and TRD.

Cybin (CYBN)

Cybin (NYSEAMERICAN:CYBN) is another one of the biggest psychedelic stocks to consider. The company is dedicated to innovating drug delivery systems and treatment regimens to advance psychedelics as powerful therapeutic options for all those suffering from mental health issues. CYBN psychedelic-based drug development targets two unique treatments for mental health ailments. Its first is CYB003, a psilocybin analog specifically designed for major depressive disorder (MDD), already under assessment in a phase 1/2a study.

The second, CYB004, intends to target anxiety disorders with an intravenous DMT deuterate, which will enter Phase 1 trials later this year to ensure safety and dosing optimization. Its clinical results have been encouraging, and if it can successfully commercialize its offerings, it could be looking at massive sales down the road.

Enveric Biosciences (ENVB)

Next up on our hot list of psychedelic stocks is Enveric Biosciences (NASDAQ:ENVB), which specializes in chemical modifications to treat various mental ailments. So far, it has an impressive database called Psybrary, and its cutting-edge AI tool, PsyAI, has revolutionized the game by connecting physicians to the most beneficial molecules needed to treat a patient based on their specific conditions.

Recently, the company announced the formation of a scientific advisory board that brings together a team of experts for the central nervous system and mental disorders. The board will provide valuable advice on technological capabilities, research pipeline, candidate prioritization, and emerging trends in neuroscience and technology.

ATAI Life Sciences (ATAI)

ATAI Life Sciences (NASDAQ:ATAI) is another clinical-stage biotech looking to make a mark in the mental health space. Its stock took a dive recently following failed results of its Phase 2a study assessing proprietary R-ketamine PCN-101 on patients suffering from depression. However, the firm states there were strong efficacy signals across all time points despite missing out on its primary endpoint. Nevertheless, it will continue to look at the study and explore new partnerships to advance its pipeline. With over 3.2 million people suffering from treatment-resistant depression (TRD)  in the U.S. alone, the long-term upside for ATAI could be massive.

AdvisorShares Psychedelics ETF (PSIL)

Investing in the psychedelics sector can be both exciting and lucrative, but betting on a single company comes with significant risk. Fortunately, investors don’t have to roll the dice regarding this new industry segment. They can instead explore the benefit of exchange-traded funds (ETFs) that offer exposure to more than one psychedelic stock through a single vehicle.

The AdvisorShares Psychedelics ETF (NYSEARCA:PSIL) is an exciting new fund that offers investors exposure to the psychedelic drugs sector. This ETF provides exposure to biotechnology, pharmaceutical, and life sciences companies leading the research and development of psychedelics. It includes some of the biggest names in the psychedelics sector, including the ones discussed in the article. By investing in this ETF, investors can reap the potential benefits from these innovations and advancements in the psychedelic space.

GH Research (GHRS)

GH Research (NASDAQ:GHRS) is an inspiring biopharmaceutical company that harnesses the potential of psychedelics in its experiments to develop treatments for psychiatric and neurological illnesses. The future looks especially promising as the exploration into its lead candidate GH001 is underway, with the ambitious aim of acquiring investigational new drug (IND) approval from the FDA. GH001 would be used as a groundbreaking TRD remedy.

Hopefully, investors won’t have to wait until further progress can confirm the highly anticipated success of this venture. Moreover, its healthy cash position of over $265 million is enough to support it through 2025. Hence, the future looks bright for the firm as it looks to become a bigger player in its niche.

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