Mental health has been one of the hot topics in the medical industry over the past few years. Widespread awareness was brought to the public eye during the COVID-19 pandemic as people in prolonged lockdowns struggled with isolation as well as the threat of a deadly virus. The World Health Organization has issued statements to emphasize how mental health issues are serious, life-altering conditions not to be downplayed. As a response, various US states raised legislation to legalize psilocybin services to address psychiatric issues. This triggered investor interest in psychedelic stocks.
While some may say it’s still too early, a few might argue that this is a great chance to get on the ground floor of something big.
So, let’s look at psychedelic stocks that offer the best potential growth in the coming years.
Cybin (CYBN)
Cybin NYSEAMERICAN:CYBN) is a biopharmaceutical company in Canada that creates psychedelic-based therapeutics to help patients suffering from mental health conditions. It has systematic research on psychedelic molecules under its dDMT and N,N-dimethyltryptamine (DMT) programs. The company is currently working on a proprietary deuterated psilocybin analog (CYB003) that is aimed at treating major depressive disorders (currently in Phase 3). It also has a proprietary deuterated dDMT molecule for generalized anxiety disorder (CYB004), which has advanced to Phase 2. The company holds an IP portfolio with 30 granted patents and 160 patents pending in the psychedelic drug development sector.
As of late, CYBN has received a lot of positive news, with recent highlights showcasing a reduction in major depressive disorder symptoms from its proprietary deuterated psilocybin analog positive Phase 2 interim data for CYB003. The company also announced the Small Pharma Inc. acquisition, which will help push its research efforts in N, N-dimethyltryptamine (DMT), and deuterated DMT programs to a new level. Furthermore, Cybin anticipates new milestones in its studies for the SPL028, CYB004, CYB003, and deuterated (dDMT) programs.
The companies’ proactive approach to regulatory approval and advancements in treating anxiety disorder has put CYBN on the path to higher potential growth. Analysts are also happy with the company’s direction and recommend it as a Strong Buy. It’s also one of our top psychedelic stocks to buy.
Supernus Pharmaceuticals (SUPN)
Supernus Pharmaceuticals (NASDAQ:SUPN) is a biopharmaceutical known for treating central nervous system (CNS) diseases. Its primary focus is on creating and commercializing treatments used in neuroscience. SUPN packs a strong portfolio of treatments that range from migraine to hypomobility in Parkinson’s disease.
It also works on potential treatments for depression, epilepsy, hypomobility in PD, and other CNS disorders. Some of Supernus’ well-known treatment products include Trokendi XR (topiramate) & Oxtellar XR (oxcarbazepine) for epilepsy treatment and APOKYN (apomorphine hydrochloride injection) for advanced Parkinson’s disease patients.
Looking at its financials, the company finished an impressive third quarter, prompting it to raise its full-year adjusted earnings guidance to $95-110 million, a substantial increase from its original $75-100 million range. Total revenue (excluding Trokendi XR net sales) went up 24% YoY. There was a strong uptick in Qelbree ADHD medication sales, up 103% YoY. The company also has several promising products in the pipeline. These include SPN-830, resubmitted and accepted for FDA approval, and several other drug trials for ADHD, depression, and epilepsy drugs. This strong momentum and an impressive pipeline make SUPN one of the promising psychedelic stocks to buy.
Biogen (BIIB)
Biogen (NASDAQ:BIIB) is a biotechnology company specializing in therapy development for serious and intricate diseases. The company carries a portfolio of treatments for various types of spinal muscular atrophy (SMA), Alzheimer’s disease, and sclerosis. It has also been taking steps in advancing treatments for postpartum depression (PPD), major depressive disorder (MDD), certain forms of lupus, and Alzheimer’s disease. Its well-known products in the market include AVONEX, PLEGRIDY, TYSABRI, FUMADERM, SPINRAZA, ADUHELM, and FAMPYRA.
The company is on its way to becoming a leader in treating Alzheimer’s disease. It recently launched LEQEMBI with FDA approval for the treatment of the disease. ZURZUVAE also got approval for the treatment of post-partum depression. Furthermore, the recent acquisition of Reata Pharmaceuticals opens up additional revenue streams in the near term.
In addition, the company has also implemented its “Fit for Growth” to bolster its financials by aligning its cost structure with revenue and focusing on growth drivers. In fact, Biogen reported a strong quarter, with revenues reaching $2.53 billion and beating analyst estimates by 9.27%. This intense focus on growth and getting its product approved for the market puts BIIB in our top psychedelic companies to buy.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
