Trump's Order on Psychedelics Caused a Surge in Related Stocks
Psychedelic drug stocks soar after Trump's executive order eases restrictions
Trump signed an executive order to ease restrictions on several popular consciousness-altering substances, including ecstasy, LSD, and psilocybin.
The sector, often lumped together with other speculative drug topics like cannabis, is experiencing a surge after President Donald Trump signed an order on April 18 loosening federal restrictions on several popular consciousness-altering substances, including ecstasy, LSD, and psilocybin. The President cited the need for psychedelics in treating mental illness.
"It's the policy of my administration to accelerate innovative research models and appropriate drug approvals to improve access to psychedelic medicines that can save lives and reverse the crisis of severe mental illness in America," he said in a statement released by the White House.
This news gave stocks of companies in the psychedelic drug sector a strong boost at the start of trading on Monday. Here are the top gainers:
- COMPASS Pathways: 50 percent
- AtaiBeckley: 33 percent
- GH Research PLC: 30 percent
- AdvisorShares Psychedelics ETF: 12 percent
The order aims to ease restrictions on research and development of these substances for medical purposes. In recent years, a growing body of research has emerged showing the benefits of substances like MDMA, ketamine, and psilocybin in treating patients with treatment-resistant mental illnesses like depression and PTSD.
However, some financial experts remain cautious in their forecasts, arguing that it will likely take some time for psychedelic substance manufacturers to benefit from commercialization.
"This will revive investor interest in the psychedelics space, but the path to commercialization is not a short one," said Chris Versace, senior portfolio manager at TheStreet Pro.
"In addition to watching the results of various studies as part of this journey, it's crucial to understand the properties of a company's molecules and how all of this fits into a treatment environment."
