It’s been one wild ride for Bright Minds Biosciences (NASDAQ: DRUG), which skyrocketed an eye-popping 5,900% this week! Yes, you read that right—nearly six thousand percent in just a few days. The surge has caught the attention of retail investors everywhere, sending everyone into a frenzy as they scramble to figure out what’s next in the psychedelic sector. Is $DRUG a one-hit wonder, or is it just the beginning of a new wave in mental health treatments?
But as exciting as DRUG’s success is, there are other stocks in the same space that are poised to follow suit. Let’s talk about Cybin Inc. (NYSE: CYBN) up 47% this month and Longboard Pharmaceuticals (NASDAQ: LBPH) up 102% this month. Two companies with promising pipelines in psychedelic-based therapies. And let’s not forget about Johnson & Johnson (NYSE: JNJ), a pharmaceutical giant that has been quietly making moves in the mental health space, positioning itself as a major player in the psychedelic and neuropsychiatric treatment revolution
The Power of Psychedelics and Cybin’s Upcoming Milestones
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Cybin Inc. ($CYBN), which is on the verge of a Phase 3 pivotal trial for its CYB003 compound aimed at treating Major Depressive Disorder (MDD). What makes Cybin stand out is the groundbreaking Breakthrough Therapy Designation (BTD) granted by the FDA earlier this year for its adjunctive psychedelic-based therapy. This BTD allows for expedited FDA review and guidance, potentially speeding up the entire drug development timeline.
So, why is Cybin in the spotlight right now? Data from its pivotal trial is expected THIS quarter, making it a key stock to watch in the psychedelic space. The 12-month durability after treatment with CYB003, and the early results have been nothing short of jaw-dropping from its 4 month data read out:
- 75% of patients were in remission from depression after just two doses (16mg).
- These effects were robust, sustained, and statistically significant, with improvements lasting up to four months.
With major updates likely dropping in Q4, all eyes are on Cybin. If the Phase 2 – 12 month durability is as strong as expected, $CYBN could explode in the same way $DRUG has this week. Don’t be surprised if retail investors start piling into this stock as the trial results loom large. The potential to redefine depression treatment and further validate psychedelics in mental health care has made Cybin one of the must-watch stocks for Q4.
Longboard Pharmaceuticals – The Quiet Contender
Another company to keep on your radar is Longboard Pharmaceuticals (NASDAQ: LBPH). While not as much of a household name as Cybin, Longboard is focused on developing treatments for neurological diseases, which could set it up for significant growth as well.
Longboard has taken a slightly different approach, opting to steer away from the psychedelic hype and instead focus on neuropsychiatric treatments. This pivot could position Longboard well in a sector where there’s a growing demand for non-psychedelic-based solutions to complex neurological conditions. With a pipeline designed to address unmet needs in rare CNS diseases, Longboard may not generate the same psychedelic buzz, but it’s a sleeper stock that could pop based on the strength of its research.
Johnson & Johnson’s Strategic Moves in Mental Health
Don’t overlook the power of Johnson & Johnson (NYSE: JNJ). As a global pharmaceutical powerhouse, J&J has been gradually entering the mental health arena, particularly with its esketamine nasal spray, Spravato, which has already been FDA-approved for treatment-resistant depression. Given its robust R&D pipeline and focus on innovative solutions for mental health disorders, Johnson & Johnson could be a significant player in the mental health revolution, blending both psychedelic-based and non-psychedelic treatments.
Neuropsychiatry Moving Away from Psychedelics?
While psychedelic-based therapies have garnered a lot of attention lately, there’s an emerging trend in the field of neuropsychiatry where some companies are beginning to explore non-psychedelic alternatives for mental health treatments. As promising as psychedelics are, there’s always risk associated with FDA approval, public perception, and functional concerns about the duration and management of psychedelic experiences during treatment. Companies like Longboard, with a more traditional pharmacological approach, are making a bet that there’s still plenty of room for more conventional treatments to thrive alongside these newer modalities.
For investors, this presents a fork in the road: Do you stick with the psychedelic revolution, or do you hedge your bets with companies focusing on more mainstream neuropsychiatric treatments? The answer might lie in diversification.
What’s Next for Psychedelics in Capital Markets?
The psychedelic sector is clearly heating up, and companies like $DRUG, $CYBN, and $LBPH are leading the charge. As data from clinical trials continues to roll out and more countries start warming up to the idea of legalizing psychedelic therapies, the potential upside for these stocks is enormous. But with that potential comes volatility.
Cybin ($CYBN) has the most immediate catalysts, with Phase 3 trial data expected any day now. If the results mirror earlier trials, where patients saw sustained improvements in depression symptoms after just two doses, it could be a game-changer for the industry and send $CYBN skyrocketing.
As for Longboard ($LBPH), the company is taking a safer, more traditional approach, which could attract investors looking for stability in the otherwise volatile biotech sector. While it’s not betting the farm on psychedelics, it’s still poised to benefit from the increased interest in mental health treatments.
Meanwhile, $DRUG has set a high bar with its meteoric rise. Whether or not it can maintain this momentum remains to be seen, but it has certainly put psychedelic stocks on the map for retail investors.
Final Thoughts
In this new era of psychedelic medicine, Bright Minds Biosciences ($DRUG), Cybin ($CYBN), and Longboard ($LBPH) and Johnson and Johnson ($JNJ) are at the forefront of what could be a major revolution in mental health treatment. With $DRUG’s 5,900% gain turning heads, the attention is shifting to Cybin’s imminent data release, which could be the next big catalyst in the sector.
As always, do your homework, seek financial advice from professionals and keep an eye on clinical trial results, and maybe keep a stress ball nearby—the psychedelic ride is going to be thrilling, but not for the faint of heart.