Psychedelics such as LSD and psilocybin (colloquially known as “magic mushrooms”) have long been known to have therapeutic effects in alleviating depression and mood disorders. However, their legality quickly became a political issue in the 1960s, as such drugs became increasingly associated with “hippie culture,” especially anti-war demonstrations and student riots. As a result, U.S. lawmakers outlawed most psychedelics under the Controlled Substances Act, classifying them in the same group as heroin.
Fast-forward half a century, and the political pressure to suppress hippie culture has largely disappeared — making researchers, patients, and investors alike far more interested in the medical benefits of psychedelics. Some would even argue that the efficacy of psychedelics is generally better than that of modern antidepressants in alleviating mental illnesses. Here are three maverick companies that are making innovations in this field.
1. Compass Pathways
Compass Pathways (NASDAQ: CMPS) is developing a synthetic, purified psilocybin variant called COMP360 to treat severe depression. So far, there have been five independent studies on psilocybin for this indication. All of them show that the drug can rapidly alleviate depressive symptoms, with a high degree of statistical significance. By the end of the year, the company will release the results of this phase 2 study.
Compass Pathways is pretty far ahead of the game regarding research and development compared to its peers. If approved, COMP360 could receive between five and 11 years of market exclusivity in the U.S….
Read more:3 Top Psychedelic Stocks to Buy Now