Top Psychedelics Stocks

1. Allied

Year-to-date gain: 109.41 percent; current market cap: US$140.55 million; current share price: US$1.78

Allied (OTCQB:ALID) is a company with a central focus on the cannabis industry. However, the firm has an interest in psychedelics thanks to the development of a psilocybin pharmaceutical product.

In November, the company advanced its Psilonex RX psilocybin drug candidate into a clinical Phase 1 trial.

Calum Hughes, CEO and chairman of Allied, said the firm became interested in the medical benefits of psychedelic compounds and now wishes to support this candidate to reach a commercialization path.

2. Blackhawk Growth

Year-to-date gain: 55.56 percent; current market cap: C$24.15 million; current share price: C$0.56

Blackhawk Growth (CSE:BLR) is a Canada-based public investment fund with holdings in various markets.

When it comes to psychedelics, the firm has an interest in Trip Pharma, a research company focused on building a facility for growing psilocybin-producing mushrooms.

The company has also funded psychedelics trials from MindBio Therapeutics. A Phase 2 study that is now fully funded will be designed to “examine the effects of Psychedelic Microdosing Assisted Meaning Centred Psychotherapy in advanced stage cancer patients.”

3. GH Research

Year-to-date gain: 23.95 percent; current market cap: US$1.3 billion; current share price: US$24.23

GH Research (NASDAQ:GHRS) is a relative newcomer to the psychedelic industry. The company went public with the promise of developing the substance 5-MeO-DMT into a psychedelic treatment for patients with treatment-resistant depression; the treatment is currently dubbed GH001. As part of its Q3 financial report, the Irish drug maker indicated a net loss of US$1.8 million for the period ended on September 30.

The firm reported a critical advancement in its trial thanks to a successful Phase 2 trial for its candidate.

Investor takeaway

The psychedelics stock market has surely taken its lumps in 2021. This list reflects that reality with the fact that none of the top drug makers in the space made the cut.

The promise of a world with psychedelic drugs available in a medical environment has been enough to lift this industry, but yearly share price performance was a challenge this past year.

During a recent investment event, Steve Hawkins, president and CEO of Horizons ETFs Management (Canada), said 2020 offered a “fantastic” year for psychedelics investments, while 2021 was lackluster.

However, Hawkins and many other experts continue to point to the market's overall health and potential thanks to the revolutionary aspect of psychedelic medicine.

It remains to be seen how things will turn out for the stock market from the present up until the first real psychedelic drug approval takes place.