The psychedelic industry has attracted unprecedented attention amid the COVID-19 pandemic due to the increasing acceptance of psychedelic treatments for mental health. Because the demand for psychedelic products is expected to increase, we think it could be wise to add popular stocks in this space COMPASS Pathways (CMPS), Mind Medicine (MNMD), and Seelos Therapeutics (NASDAQ:SEEL) to one’s watchlist. Wall Street analysts expect these stocks to double or triple in price in the coming months. So, let’s discuss these names.The use of psychedelic drugs still carries a stigma, and there is also uncertainty surrounding the FDA’s approval of psychedelic drugs. However, the increasing acceptance of psychedelic treatments and the availability of off-label medications are expected to drive the industry’s growth. The Biden administration also recently proposed a change to the federal drug scheduling system, with the goal of streamlining research into Schedule I controlled substances, including psychedelics.
According to a report by Data Bridge Market Research, the psychedelic drugs market is expected to grow at a 13.3% CAGR from 2021 - 2028. Furthermore, the COVID-19 pandemic-led isolated lifestyle has highlighted the demand for psychedelics. These uncertain times have caused rising prevalence of depression and anxiety, increasing the need for psychedelic-based treatments.
Given the industry’s immense growth potential, we think it could be wise to add psychedelic-related stocks COMPASS Pathways plc (CMPS), Mind Medicine (MindMed) Inc. (MNMD), and Seelos Therapeutics, Inc. (SEEL) to one’s watch list. Wall Street analysts expect these stocks to double or triple in price in the near term.