If you are looking for a new sector in 2021, you need to review the psychedelics market. The total market opportunity is expected to be equal to $6.8 billion by 2027. Besides, most traders don’t know which stocks to buy in order to profit from the growth of the psychedelics sector. Traders buying stock winners will most likely make a lot of money from 2021:
Source: The Guardian
The psychedelic drugs market is expected to gain market growth in the forecast period of 2020 to 2027. Data Bridge Market Research analyses that the market is growing with a CAGR of 16.3% in the forecast period of 2020 to 2027 and expected to reach USD 6,859.95 million by 2027 from USD 2,077.90 million in 2019. Source: PrNewsWire
Psychedelic Drugs and Stocks
These new drugs are currently used to change sensory perception as well as to obtain spiritual experiences. However, that’s not all that psychedelic drugs can offer. According to researchers, psychedelic drugs will also be used for the treatment of treatment-resistant depression, opiate addiction, and even panic disorder.
COMPASS Pathways plc (CMPS) is a mental health care company in the UK and the US. CMPS is currently at the Phase IIb clinical trial to treat individuals suffering from treatment-resistant depression. It has a market capitalization of more than $1.5 billion, and reports $196 million in cash. The company does not report sales. However, if authorities accept the company’s product candidate, traders will expect a massive increase in share price.
Headquartered in New York, Mind Medicine (MindMed) Inc. (MMEDF) is a psychedelic medicine biotech company. Mind Medicine is developing a pipeline of treatments based on psychedelic substances, including MDMA, LSD, and Psilocybin among others. The company has a total market capitalization of 1 billion with 326 million shares. As of today, it does not report sales.
Global Trac Solutions Inc. (PSYC): Global Trac Solutions, Inc. (OTCPink: PSYC) presents itself as a holding company investing in the emerging medicinal psychedelic sector. With psychedelicspotlight.com, the company offers information and content about the psychedelic industry. PSYC trades with a market cap of less than $1 million.
Interestingly, PSYC recently signed a MOU with PsycheDev Inc., which provides technology-driven mental wellness-enhancing solutions. In our opinion, if the negotiations with PsycheDev Inc. work well, PSYC may sign a M&A contract. In that case scenario, we would expect the share price to increase quite a bit.
Headquartered in Canada, PharmaTher Inc. (PHRRF) is a pharmaceutical company, engaged in repurposing psychedelic-derived drugs using AI technology. PHRRF has a market capitalization of $14 million, and has recently submitted its application for uplisting to the OTCQB® Venture Market. In our opinion, if the exchange accepts the company, more traders will check PHRRF’s financials. As a result, we could see an increase in the share price.
Disclosure: We are not long PHRRF, PSYC, MMEDF, or CMPS. We are not receiving compensation for it.