More and more people are becoming receptive to the idea that psychedelic drugs could be used to treat mental illness, and as a result, biotech companies that focus on psychedelics are becoming legitimate and profitable investments that could help your portfolio in the future.
More and more evidence suggests that businesses working on psychedelic-chemical-based therapies for mental health could one day become very successful.
Promising clinical trial results for drugs like psilocybin in indications like treatment-resistant depression (TRD) are piling up every quarter, so it’s only a matter of time before psychedelic medicines are available on the market.
It’s difficult to deny the parallels between the psychedelics and medical cannabis industries. Once considered the domain of hippies and druggies, both have seen a resurgence in respectability over the past two decades as studies have shown their potential to alleviate symptoms that conventional medicine has failed to address.
Investors familiar with the sector are probably already aware of some of the big players like atai Life Sciences (OTC: ATAI), Mind Medicine Inc. (NASDAQ: MNMD), and Cybin Inc. (AMEX: CYBN), but as this sector is in its infancy, it’s important to look at companies with the potential to soon be big breakouts.
Lobe Sciences Inc. (OTC: LOBEF) (CNSX: LOBE) is a life sciences company focused on practical psychedelic medicines. Lobe Sciences is working on improving mental health and well-being through drug research and development involving psychedelic compounds, as well as the creation of novel devices and delivery mechanisms in collaboration with industry leaders.
In late 2022, the North American firm shared an update from its ongoing clinical trials.
The psilocin-based compound L-130 is currently in the research and development phase. LOBEF received official permission to import L-130, so this news is very encouraging for the company.
LOBEF says that Clearway Global’s network of contract research organizations will be used in the first phase 1 clinical trials. December 2022 saw the start of the initial subject trial. Topline data will therefore be accessible for review in the first quarter of 2023. When LOBEF releases the trial’s findings, savvy investors should pay close attention.
LOBE’s CSO commented on the company’s successes saying, “It is important to remember that in just 12 months, Lobe has transformed into a fully integrated virtual drug development company.” We now have multiple New Chemical Entities’ (NCE’s) including L-130, that are entering human trials. L-131 is entering pre-clinical trials as we prepare a pediatric Orphan Drug application with the potential of receiving a Priority Review Voucher for L-131. All of this positions Lobe Sciences among the leaders in the small group of companies involved in the clinical development of psychedelic drugs.”
Keep LOBE in mind if you’re looking for promising psychedelic stocks to invest in for 2023, as this industry is expected to undergo significant growth and change over that time.
COMPASS Pathways PLC (NASDAQ: CMPS) is a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health. CMPS is looking to develop a new model of psilocybin therapy with the goal of bettering the lives of those who are struggling with mental health issues.
CMPS called their synthetic psilocybin “COMP360.” The company plans to administer the medicine in conjunction with psychological support. COMP360 has been designated a breakthrough therapy in the US by the FDA and has received Innovative Licensing and Access Pathway (ILAP) designation in the UK for treatment-resistant depression (TRD).
Last week was a strong week for the stock, finishing up 3.14% at $9.55.
Seelos Therapeutics, Inc. (NASDAQ: SEEL) is a biopharmaceutical company in the clinical stage that focuses on making and improving medicines for people with disorders of the central nervous system and other rare diseases.
The company has a number of late-stage clinical assets aimed at diseases like Major Depressive Disorder (MDD), Amyotrophic Lateral Sclerosis (ALS), and Spinocerebellar Ataxia (SCA). The company also has early-stage programs for Huntington’s disease, Alzheimer’s disease, and Parkinson’s disease.
It’s clear that the company isn’t just working on psychedelic innovations. However, SEEL is studying sls-002 and sls-003, two ketamine-based treatments for Acute Suicidal Ideation and Behavior (ASIB) in MDD and PTSD.
After a strong week of gains, the stock closed at $.92, up 5.14% from the previous week’s close. Their two-pronged approach makes the company appealing to potential investors because their success is not dependent solely on the psychedelic market.
GH Research PLC (NASDAQ: GHRS) is another clinical-stage biopharmaceutical company dedicated to transforming the treatment of psychiatric and neurological disorders.
GH Research PLC is dedicated to discovering and creating novel mebufotenin therapies for the amelioration of TRD in adult patients. They’ve designated their pharmaceutical compound, GH001, as a working name for the project.
Based on the observed clinical activity, where 87.5% of patients with TRD were brought into an ultra-rapid remission with the GH001 single-day individualized dosing regimen in the Phase 2 part of the trial, the company believes that GH001 has the potential to change the way TRD is treated today. The company also stated that no serious adverse events were reported during the GH001 program and that GH001 was well tolerated at the investigated single dose levels and in the individualized dosing regimen. GH001 is expected to enter Phase 2b clinical development in TRD at some point in the first quarter of 2023.
The stock had a fantastic week, finishing up 11.75% at $10.08. With such promising results, good financials released last week, and a promising future, look for this company to be another psychedelic breakout in 2023.
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