If I told you that psychedelic stocks were among some of the best stocks to buy for the next decade, you’d probably look at me funny.
I wouldn’t blame you. But, believe it or not, psychedelic stocks are some of the best stocks to buy for the next 10 years.
Today, psychedelics — like LSD, MDMA and “magic mushrooms” — are on the cusp of a Shroom Boom, wherein psychedelic-inspired treatments will go from taboo to mainstream. Against that backdrop, psychedelic stocks will roar higher.
What will drive this Shroom Boom of the 2020s? The same things that drove the cannabis boom of the 2010s. Changing science. Changing consumer attitudes. And, changing laws.
Over the past five years, a wave of academic research has emerged which supports the notion that psychedelic-inspired medicines are effective and often superior treatments for things like addiction, ADHD, depression and anorexia.
This changing science laid the groundwork for the first psychedelic medicine, a nasal spray called Spravato used for the treatment of depression, to clear U.S. Food and Drug Administration approval in March 2019.
At the same time, the media — much as it did with marijuana a decade ago — is helping destigmatize psychedelics today. The best example is the recent documentary, Have a Good Trip: Adventures in Psychedelics, which is a compilation of celebrities — including Carrie Fisher and Ben Stiller — talking about their psychedelic trips.
In other words, the psychedelics industry today is where the marijuana industry was in 2015 and 2016, in the midst of changing public perception. What comes next? Legalization and commercialization.
During those phases of the Shroom Boom, psychedelic stocks will roar higher.
With that in mind, some of the best psychedelic stocks to buy for potentially huge gains are:
Psychedelic Stocks to Buy: MindMed (MMEDF)
The leader in the pharmaceutical psychedelics space, MindMed is a small, $75 million company with huge upside potential over the next several years.
MindMed is building and advancing a compelling portfolio of psychedelic-inspired medicines which should come to market within the next few years. When they do, those medicines will spark huge growth for this company.
Specifically, MindMed has two classes of medications aimed at attacking two separate markets: addiction and ADHD.
The company’s addiction medication, 18-MC, is built to normalize dopamine irregularities in patients. It is currently in Phase 1 human trials, and is expected to enter Phase 2 trials by the end of the year. Meanwhile, the company is pioneering Phase 2 microdosing trials for LSD and psilocybin in treating ADHD. These are the first trials of their nature.
If MindMed is successful in bringing these psychedelic-inspired medicines for addiction and ADHD to market — and it should be — the potential upside in MindMed stock is enormous.
Worldwide pharma sales for opioid abuse totaled $2.9 billion in 2019. Worldwide pharma sales for ADHD totaled $9.2 billion in 2019. In sum, then, MindMed is an $80 million company disrupting a $12.1 billion market with novel, breakthrough treatments.
It doesn’t take a rocket scientist to connect the dots here. MindMed is a potential multibillion-dollar company in the making. Needless to say, that makes MindMed stock one of the most compelling stocks to buy for the next decade.
Champignon Brands (SHRMF)
Whereas MindMed is attacking the ADHD and addiction markets, peer psychedelics pharmaceutical company Champignon Brands is more focused on treating depression and PTSD.
Specifically, Champignon Brands is using dissociative psychedelics like ketamine, psilocybin and MDMA to develop and commercialize patented treatments for depression and PTSD. Such treatments are in preclinical trials. So a revenue-generating product won’t be available here for at least another few years.
But if Champignon’s unique psychedelic solutions do prove effective in treating depression and PTSD, the opportunity and potential upside are huge.
The PTSD therapeutic treatment market globally is marching toward a $10 billion-plus value. Global spending on anxiety disorder and depression treatment is marching toward $18 billion. Thus, if Champignon’s treatments do pass clinical trials, the company will be coming to market with two novel treatments ready to disrupt a combined $28 billion-plus market.
In other words, much like MindMed, Champignon is a potential multibillion-dollar company in the making. By extension, Champignon stock is one of the best psychedelic stocks to buy for the next decade.
Revive Therapeutics (RVVTF)
MindMed and Champignon Brands are pure plays on the Shroom Boom. But, last on our list of psychedelic stocks to buy, we have a mixed play on this megatrend: Revive Therapeutics.
At its core, Revive is a CBD company. The company is in the process of advancing CBD pharmaceuticals to treat rare inflammatory areas such as liver disease.
And the company is pretty good at doing this. To date, Revive has been granted FDA orphan drug status for both the use of CBD to treat liver disease, and ischemia and reperfusion injury from organ transplantation.
Recently, though, Revive has plunged into the psychedelics space with the acquisition of Psilocin Pharma. Psilocin Pharma was experimenting with psilocybin-based therapeutics to treat mental health issues.
Going forward, Revive plans to advance both its CBD and psychedelic treatments. If either of these initiatives gains traction within the next few years, nano-cap Revive stock could fly higher.
Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.