Biopharmaceutical firms are racing to develop medicines based on psychedelic compounds such as psilocybin (found in “magic mushrooms”), LSD (lysergic acid diethylamide) and Ecstasy/MDMA for mental and mood disorders. Most of these hallucinogenics are illegal in the US. But in FDA clinical trials, some have shown real efficacy, alleviating depression, anxiety, post-traumatic stress disorder (PTSD) and post-partum depression (PPD). Psychedelics can create vivid visions in the brain and promote feelings of insightfulness, but they also provide relief for symptoms of depression within hours, not weeks, and don’t have the side effects such as drowsiness, weight gain and sexual dysfunction.
One psychedelic-like drug has been approved by the FDA—Johnson & Johnson’s prescription nasal spray for treatment-resistant depression (TRD), Spravato. Its active ingredient, esketamine, is related to ketamine in horse tranquilizer. Sales of Spravato in 2024 may be $1 billion once official figures are in. Here are other firms developing promising psychedelic drugs…
Compass Pathways (CMPS) is using psilocybin to help patients with TRD, PTSD and anorexia. Recent share price: $3.75.*
GH Research (GHRS) has developed a compound from 5-meO-DMT, also known as Bufo. The potent psychedelic, which can be found in enzymes secreted by poisonous toads, is targeted for TRD, PPD and Bipolar II disorder. Recent share price: $7.50.
Mind Medicine (MNMD) is testing an LSD-based treatment for generalized anxiety disorder, as well as a formulation with MDMA for patients with autism spectrum disorder. Recent share price: $6.70.
