NUMI and FTRP: 2 TSX psychedelic stocks to buy amid new developments

Numinus Wellness (TSX: NUMI) and Field Trip Health (TSX: FTRP) recently made headlines as these psychedelic players announced significant developments, which could stir some interest in their stocks too.

People are talking about psychedelic treatments and therapies and how it can help treat mental disorders and addictions. Many small biotechnology and pharmaceutical firms are also entering the market with the growing importance of mental health.

Let’s quickly discuss the latest developments of Numinus Wellness and Field Trip Health, their financial aspects and stock performance. 

Numinus Wellness Inc (TSX: NUMI)

Numinus Wellness agreed to acquire Novamind (CSE: NM), a Toronto-based psychedelic firm, for an all-in share transaction.

According to the definitive agreement, Numinus will buy all the issued and outstanding Novamind shares on court approval for about C$ 26.2 million on a fully diluted basis. The combined entity will be positioned as a leading psychedelic company in North America with 13 wellness clinics.

Numinus expects that this acquisition will bolster its financial performance by increasing its annual revenue and improving its margin through identified operating efficiencies.

The Vancouver-headquartered company noted a total revenue growth of 244.5 per cent year-over-year (YoY) to C$ 0.78 million and recorded a net loss of C$ 5.35 million in Q1 FY2022.

NUMI stock declined by over 52 per cent YoY.

Also read: Canada Budget 2022: 2 stocks as Freeland allots $5.3B for dentalcare

Field Trip Health (TSX: FTRP)

Field Trip was recently granted US Patent for FT-104, its first novel psychedelic molecule in development, and gained exclusive rights to its composition and protection until 2040.

The psychedelic company earned C$ 1.36 million in patient services revenue in Q3 FY2021 compared to C$ 0.31 million a year ago.

FTRP stock slipped by nearly 71 per cent in the last one year.

Bottomline

The psychedelic market could see significant growth as and when its legalization expands in North America. However, investors should align investment decisions with their return goals and risk tolerance before investing in fairly new spaces like psychedelic stocks.

Also read: Mind Medicine (MNMD): A psychedelic stock for long-term holders?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.