6 best psychedelic stocks to buy

Highlights

• One of the companies discussed here is developing psychedelic pharmaceuticals to treat brain injury and stroke.
• One of these listed companies signed an agreement to conduct human trials of medicinal mushrooms and Ganoderma Lucidum for the treatment of breast cancer
• Many psychedelic companies are conducting psychedelic therapies and advanced clinical trials

Some market experts believe that the pandemic outbreak in 2020 was a turning point for the psychedelic industry, as many people around the world encountered mental illnesses such as depression, anxiety, etc. in its wake.

This heightened the need to focus on the development and advancement of psychedelic therapies and drugs, which can be marked as the beginning of a new era in the alternative medicine or drug space.

Many psychedelic companies are marking their progress by conducting and advancing research on psychedelic therapies and medicines. Research is being conducted on the treatment of depression, brain injury, breast cancer, etc.

On that note, let us explore some of psychedelic stocks.

1. PharmaTher Holdings Ltd Com (CSE: PHRM)

PharmaTher conducts business as a life science company researching and developing psychedelic pharmaceuticals products approved by the Food And Drug Administration (FDA).  These drugs are used in the treatment of mental issues and few neurological disorders.

As per the latest report, the life science company is advancing its research to treat stroke and traumatic brain injury. The company is working in tandem with the University of Wisconsin System to conduct the Phase I/II clinical trial of studying the feasibility of psilocybin. This is proposed to be studied in adult patients with methamphetamine use disorder.

This life science scrip held a market cap of C$ 60.52 million, and its stock price closed at C$ 0.9 on August 24, 2021.

The stock price rocketed by 397 per cent in the last nine months, and on a year-to-date (YTD) basis, it jumped by nearly 172 per cent.

PharmaTher held a price to earnings (P/E) ratio of 22.50 and a return on equity (ROE) of 46.08 per cent.

Source: Pixabay

2. Revive Therapeutics Ltd (CSE: RVV)

The C$ 133.84 million market cap drug manufacturing company conducts research and development of psychedelic drugs and products. Revive Therapeutics also caters to pain and inflammation by procuring medical products, etc.

The senior leadership of Revive Therapeutics commented that the company had signed an agreement to conduct human trials of medicinal mushrooms and Ganoderma Lucidum to treat cancer and mental health conditions.

Researchers suggest that Ganoderma Lucidum extract reduces tumor size and inhibits breast cancer.

The company held outstanding shares of 308.42 million and posted a price-to-book (P/B) ratio of 4.3 and a debt-to-equity (D/E) ratio of 0.93 on August 24.

Stocks of Revive closed at C$ 0.43 on August 24. On this day, the company's stocks traded nearly 151 per cent above their 52-week low of C$ 0.17 (October 29, 2020). It expanded by 66 per cent in one year.

Also Read: 3 Psychedelic Stocks To Trip On in 2021 

3. Compass Pathways Plc (NASDAQ: CMPS, CMPS:US)

The mental health care company treats patients suffering from resistant depression and depressive disorder by developing new psilocybin therapies. Compass Pathways held a market cap of US$ 1.34 billion and 41.7 million outstanding shares on August 24. The investors of the company also enjoyed a P/B ratio of 4.26 on this day.

The stock price of the company closed at US$ 33.03 on August 24. On December 14, 2020, it reached its 52-week high of US$ 61.69.  The stock price dipped nearly 14 per cent on a quarter-to-date (QTD) basis.

Compass Pathways incurred a net loss of US$ 17.5 million in the second quarter of the fiscal year 2021. During the quarter, the company conducted a clinical trial of psilocybin therapy on 233 patients spanning across 10 countries.

4. Mind Medicine Inc. (NASDAQ: MNMD, MNMD:US)

The biotech company develops psychedelic therapies and treatments for mental illnesses. Mind Medicine Inc is progressing towards the next generation of psychedelic therapies and medicines.

The company went public by launching its initial public offering (IPO) on May 4, 2015. It held outstanding shares of 368.05 million and a market cap of US$ 1.02 billion on August 24.

On April 27, 2021, the stock price of the biotechnology scrip reached its 52-week high of US$ 5.77. It closed at US$ 2.74 on August 24. In the past year, the stock price ballooned roughly 712 per cent.

Mind Medicine Inc. incurred a net and comprehensive loss of US$ 36 million in Q2 FY21. Its cash balance was US$ 157 million in the same quarter.

As per the latest report, the company collaborated with Forian, a leading clinical research company. It seeks to develop psychedelic therapies to treat anxiety disorders. 

Also Read: Best psychedelic stocks to explore in Canada

5. Numinus Wellness Inc. (TSXV:NUMI)

The mental health care company innovates and conducts psychedelic therapies. Numinus Wellness held a market cap of C$ 178.63 million, and P/B ratio of 2.66, and a D/E ratio of 0.02 (at the time of writing).

Numinus Wellness Inc. posted revenue of C$ 0.56 million in Q3 FY21, up by 160 per cent Year-over-Year (YOY). Its cash balance was C$ 63.2 million in the same quarter.

During the quarter, the company expanded its research laboratory by 7,500 square feet. Moreover, a Phase 1 clinical trial to study the efficacy of a Psilocybe extract was announced in the same period.

The stock price closed at C$ 0.88 on August 24, which traded nearly 370 per cent above its 52-week low of C$ 0.18 (August 26, 2020). The stock price expanded by a whopping 295 per cent over the past year.

6. Field Trip Health Ltd (TSX:FTRP)

The healthcare company conducts research on plant-based psychedelics and has therapy centers across Europe and North America.

The company's stock price closed at C$ 5.77 on August 24 and traded 40 per cent below its 52-week high of C$ 9.88 (February 11, 2021). On a YTD basis, the stock price climbed up by 41 per cent.

Field Trip posted patient service revenue of C$ 0.87 million in Q1 FY22. Its net loss was C$ 12.53 million in the same quarter.

The management of the healthcare company believes that the demand for psychedelic therapies will go up despite the pandemic’s effect on the company. They also believe that demand for its depression-related psychedelic therapies will surge soon.

On the valuation metrics, the company stood with a P/B ratio of 3.24. 

Bottomline

Although psychedelic medicines and therapies are believed to treat and cure many mental disorders and health issues, an overdose of these products can be hazardous. These drugs require approval from the FDA.