Psychedelics like LSD and psilocybin (otherwise known as “magic mushrooms”) have been touted for their therapeutic effects in helping with mood disorders and depression. However, their legality was a political issue during the 1960s. With lawmakers outlawing most psychedelics using the Controlled Substances Act, which put them in the same category as heroin.

Today, the political climate has allowed researchers and patients, who are interested in the medical benefits that psychedelics offer, to explore this possibility. Some would say that the efficacy of psychedelics is usually better than modern antidepressants in helping with mental illnesses. Here are three companies that could be creating innovations in this area.

1. Compass Pathways

Compass Pathways is creating a synthetic psilocybin named COMP360 to help with severe depression. So far, there are five independent scientific reviews on psilocybin for this treatment. All of them reveal that the drug can quickly help depression symptoms, with a high amount of statistical significance. By the end of this year, the company will give their results of their phase 2 study.

Compass Pathways is far ahead of the game in regards to their R&D compared to their peers. If approved, COMP360 might get between five and 11 years of market exclusivity.

The company has a market value of $1.4 billion. The stock is down around 10% over the past year. But it had a large trading area of $30 to $60. And this is a good stock since it is the leader in proving that psychedelics can deliver lots of benefits. Plus, it can use its IP legal protection to capture more of the multi-billion dollar market with psychedelics for some time if their trials work out.

2. Mind Medicine

Also called MindMed, this company develops LSD for numerous indications — the most advanced is pending to start phase 2 for treatment of anxiety. The study reviews the effects of 20 micrograms of LSD when compared to a placebo, and will start in the fourth quarter of this year. MindMed created the trial with LSD neutralizers standing by, which will stop patients’ hallucinogenic effects in under 30 minutes in case of bad side effects.

The company is also working with the University of Basel Hospital to create LSD therapies for things like cluster headaches, and has other psychedelic products in trial. Since its start, the company brought in $204 million from investors. MindMed is also supported by Bruce Linton, the co-founder of Canopy Growth. Its market cap is $1.2 billion and the stock is higher by 960% over the past year.

3. Cybin

Cybin’s top drug candidate is psilocybin given via a sublingual film; it is under review to treat depression. The phase 2 study will commence sometime this year and will go on for 12 months.

Cybin is doing a lot more than just creating psychedelic products. Right now, it is working with neurotechnology company Kernel to measure psychedelic experiences. This data is worth a lot, as it can give incredible insights on how new molecules handle neurological disorders.

Since its start, the company has brought in over 88 million. It currently has a market cap numbered at $308 million and the stock is higher by 217% from last November.

Author: Scott Dowdy

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