How Biotech & Psychedelic Penny Stocks Could See New Bullish Interest in 2021
If you’ve read the title and are wondering what psychedelic stocks are, you’re not alone. This niche area of the stock market has only begun to gain traction in the past few years & penny stocks are among the top things to watch right now. But, with new updates to legislation in Oregon, Colorado, and Washington D.C., this could be the beginning of something big. Of course, we have to note that it is very early on in the history of psychedelic stocks. Despite this, there are big things happening that investors should pay attention to.
While Americans were perched on the edge of their seats watching the presidential election, big news struck several states on the West Coast. On November 3rd, Oregon made history as the first state to legalize magic mushrooms. Measure 109 as it is known, gives supervised mental health patients, the right to use psilocybin (the active ingredient in magic mushrooms).
In addition to this, the District of Columbia also voted to decriminalize the use of magic mushrooms alongside other psychedelics in the passing of Initiative 81. It’s also worth noting that Initiative 81 passed with almost 80% of the vote in favor. This shows that there is a clear desire for the legalization of psychedelics. And while tie-dye wearing individuals are cheering in the bleachers, scientists are getting to work on how these substances can be used to treat mental health conditions instead of current market options.
Biotech & Psychedelic Stocks to Watch:
- HAVN Life Sciences Inc. (HAVN Stock Report)
- Compass Pathways Plc. (CMPS Stock Report)
- MindMed Inc. (MMEDF Stock Report)
- vTv Therapeutics Inc. (VTVT Stock Report)
For instance, Biogen Inc. (BIIB Stock Report) came out with news on an Alzheimer’s drug. On November 4th, shares of BIIB stock shot up by over 40% during intraday trading. And while we see gains like this often amongst penny stocks, for a $346 per share pharmaceutical company to shoot up like this, is almost unheard of. The company is working on studying its drug known as aducanumab. The company has stated that this drug could be a groundbreaking discovery for those suffering from Alzheimer’s.
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While Biogen Inc. is a great example of what the future could hold, there are plenty of options when it comes to the grassroots of an industry looking to compete with the likes of Biogen someday. This is where traders are searching for psychedelic penny stocks to watch. With that in mind, here are four biotech and psychedelic stocks that investors are betting on for the long haul.
Psychedelic Penny Stocks To Watch: HAVN Life Sciences Inc.
HAVN Life Sciences Inc. may not be a stock you’ve heard of yet, but the company has been working on some big updates. Many investors believe that HAVN Life Sciences could be on the verge of a market with big potential. Few times in life are we granted the opportunity to see the birth of a new and groundbreaking industry.
And with psychedelics seeing a cannabis industry like trajectory, we could just have that opportunity. Big-name investors like Peter Thiel, Kevin O’ Leary and Bruce Linton, have all hedged their bets on psychedelic stocks. And if you don’t believe them, here are some of the facts on why HAVN Life Sciences could be one to watch in this burgeoning industry.
The legalization and decriminalization of psychedelics mean that there will be more opportunities to study these substances. With the opioid crisis in full effect, pharmaceutical companies are always looking for another way to treat pain, mental health issues, and more. Previous studies have shown the efficacy of utilizing psychedelics to treat everything from anxiety to ADHD and PTSD. And, there is little to no dependence or addiction formed from these substances. HAVN Life Sciences has been working to capture as much of this market as it can.
What To Watch With Havn
The company began by finding the most qualified individuals to lead its business. This includes Vic Neufeld, who famously took the pot stock Aphria Inc. (APHA Stock Report) to the moon during the early days of the pot stock movement. During his leadership at Aphria, Neufeld led the company from under CA$1 to north of CA$25.
When it comes to Havn, the company is currently working on two different initiatives named HAVN Labs and Havn Retail. Havn Labs is working on new extraction methods for producing high grade psychoactive and psychedelic compounds.
It has stated that its work on psilocybin will be the first of its kind. Havn Retail, on the other hand, is working to serve the health and wellness market by producing more consumer based products. Both of these initiatives show a steep commitment to innovation in an industry that is only just beginning. For these reasons, HAVN Life Sciences continues to be one of the top psychedelic penny stocks to watch.
Psychedelic Stocks To Watch: Compass Pathways Plc.
Compass Pathways Plc. is another one of the leaders when it comes to psychedelic therapies. On November 4th, shares of CMPS stock shot up by around 11% during intraday trading. This bullish momentum is fueled by the legalization of psilocybin in Oregon and Washington D.C’s decriminalization of the substance. Based out of the U.K., Compass Pathways is working on new therapeutics utilizing crystalline forms of psilocybin. These drugs are planned to be used in those who suffer from depression and have not found viable treatments anywhere else.
What To Watch With Compass
In addition to working on developing these drugs, Compass Pathways is working on unique ways that the drug can be administered. Because this is such a groundbreaking area of an equally groundbreaking industry, everything has to be designed from scratch. Ronan Levy, the founder of a ketamine clinic operation stated that the new legislation “marks a significant inflection point in the coming psychedelic renaissance.”
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Since early September, shares of CMPS stock have rocketed up by as much as 45%. With all of this in mind, Compass Pathways remains a leading psychedelic stock to watch.
Psychedelic Penny Stocks To Watch: Mind Medicine Inc.
Mind Medicine Inc. or MindMed Inc. for short is considered to be a neuro-pharmaceutical company. The company states that it works in the discovery, development, and deployment of psychedelic-inspired pharmaceuticals. MindMed also focuses on working to tackle the opioid epidemic. It is doing this by working to produce a non-hallucinogenic version of the substance known as ibogaine. In addition, the company has stated that it is working on several other drugs to treat ADHD, anxiety, cluster headaches, and more.
What To Watch With MindMed
Recently, the company announced that it had completed a bought deal offering for 23,810,000 units of the company. This adds up to a total of $25 million in raised funds. With this, it should be able to further its aforementioned research. As one of only a few companies in the psychedelic industry, MindMed Inc. has become a frequently mentioned name on a list of psychedelic stocks. If it is able to receive approval for its various substances, there’s no telling how far it could go in the long term.
Biotech Penny Stocks To Watch: vTv Therapeutics Inc.
While vTv Therapeutics Inc. isn’t one of the leaders in psychedelics it has been one of the biotech penny stocks to watch recently. It’s also becoming a relevant name this week in light of the Biogen news. The company has been picking up a great deal of forward momentum in the past few months.
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Recently, it announced some exciting news regarding its ability to treat Alzheimer’s with groundbreaking new tech. After presenting its clinical trials at the Alzheimer’s Disease Digital Event, many investors have since taken note of the company. One of its drugs, Azeliragonas, may be utilized for the treatment of Alzheimer’s disease as well as those suffering from type 2 diabetes.
“If the Phase 2 data are positive, this design would allow us to move quickly to a Phase 3 trial with the potential to support product approval. Approximately 35% of patients with AD have T2D, with associated increased advanced glycation endproducts and increased expression of the Receptor for Advanced Glycation Endproducts, the target for azeliragon. We believe that azeliragon could potentially be an important advance for addressing dementia in this population.”Steve Holcombe, President and CEO of vTv Therapeutics