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Atai

Atai Life Sciences NV (ATAI) clinical-stage biopharmaceutical firm seeking to revolutionize the way we treat mental health disorders. The company has spent years developing psychedelic therapies based on substances such as psychedelic substances like Psilocybin, R-ketamine, Ibogaine, DMT, and MDMA derivatives.

Not only is Atai the largest player in this market, valued at over $265 million but it’s also backed by prominent tech figures such as Peter Thiel. The company is also one of the few to have a partnership with a major pharmaceutical company. It’s working with Japanese drugmaker Otsuka to develop a depression treatment based on r-ketamine.

The stock has dropped 90% since its listing in 2021, which highlights how precarious this industry is.

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Compass

Initially launched as a not-for-profit in 2015 to research the use of psychedelic drugs on anxiety and depression, Compass Pathways pivoted to for-profit in 2016 and listed on the NASDAQ in 2020.

Since then, the stock has lost 72% of its market value. However, its drug development pipeline is still moving forward. Compass successfully completed its phase 2 study evaluating COMP360 in treatment-resistant depression. This was the largest clinical trial in the history of psilocybin therapy. Now the company is working on similar studies focused on post-traumatic stress disorder (PTSD) treatments.

Some of Compass’ research and development is funded by Atai, which owns a minority stake in the firm. This base of investors and success at clinical trials makes Compass an interesting opportunity for investors.

CYBIN

Toronto-based Cybin has completed over 140 preclinical trials of its various psychedelic treatments for mental health disorders. One of its leading candidates is a drug labeled CYB001, which is designed to potentially treat major depressive disorder.

Cybin stock is down 75% over the past year, which means its market value is smaller than its rivals mentioned above. Investors should consider this a penny stock in the risky world of psychedelics.

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About the Author

Vishesh Raisinghani

Vishesh Raisinghani

Freelance Writer

Vishesh Raisinghani is a freelance contributor at MoneyWise. He has been writing about financial markets and economics since 2014 - having covered family offices, private equity, real estate, cryptocurrencies, and tech stocks over that period. His work has appeared in Seeking Alpha, Motley Fool Canada, Motley Fool UK, Mergers & Acquisitions, National Post, Financial Post, and Yahoo Canada.

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