Analyst Sees Huge Upside for These 2 “Strong Buy” Psychedelic Stocks

Market segments evolve, as people’s habits and perceptions change. This is becoming particularly obvious in the pharmaceutical industry. We’ve seen it in the last few years with the cannabis segment, which is experiencing something of a boom since Canada enacted full legalization in 2018. The substance was already becoming more socially acceptable; now, it has moved further to the mainstream and legalization regimes are expanding, along with opportunities for investors.

We may be seeing the beginning of a similar movement in psychedelic drugs. This is a class of drugs, usually considered controlled substances and illegal for personal possession and use, with growing applications in neurology, mental health, and pain relief. Several biopharma companies are focusing their research into this field, and early investors are moving capital towards them.

There are a number of factors underlying the emergence of the psychedelic drug segment. A need for new mental health treatments is gaining attention worldwide, and as the cannabis industry shows, both public and governmental attitudes toward controlled substances are shifting more and more toward acceptance. To give two examples of the latter, the California city of Oakland has decriminalized psilocybin, and Canada has legalized the same substance a palliative treatment for terminal cancer patients.

Globally, it’s expected that the total addressable market for psychedelics – especially psilocybin, the active ingredient in ‘magic mushrooms’ – will reach $10 billion in the second half of this decade. It’s estimated that psychedelic-focused pharmaceutical companies may see revenues of $7.57 billion by 2028.

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