Psychedelic Penny Stocks To Watch For 2021
Call these penny stocks what you will: psychedelic, magic mushroom, shroom, etc. This has become one of the hottest industries in biotech. If you can remember, back to the early days where marijuana penny stocks were heating up accounts, there was little known about the industry’s future. But early adopters started buying everything and anything with the words “cannabis,” “pot,” “marijuana,” or “weed.”
A lot has been learned since then, especially about industries surrounded by taboo. Similarly, psychedelic penny stocks have commanded growing interest from the medical community. The one thing we see different is that there’s been a more strategic approach to the industry as a whole.
Key investors like Peter Thiel, Kevin O’Leary, and even former pot industry trailblazers have begun to plant their flags. If this were a baseball game, we’re probably still looking at the first or second inning right now. The name of the game is R&D, and with it, certain companies are already leading the pack.
Psychedelic Stocks Get A Boost From Analysts
Take, for instance, one of the few listed companies, Compass Pathways (NASDAQ: CMPS). This week, the psychedelic stock gained coverage from Roth Capital, which started Compass at Buy. What is even bigger is the price target given on the stock. Roth set $88 as its CMPS stock forecast. Based on Thursday’s opening price, the firm appears to anticipate an upside of as much as 132%. This seems to have given a nice boost to certain sector stocks, moving in sympathy with this sentiment.
Also, where it took the cannabis industry a few years before seeing its first ETF, Horizon’s Psychedelic Stock Index ETF (NEO: PSYK) went public earlier this year. Compass, coincidentally, was one of the top 3 heaviest-weighted holdings at the end of the week last week. Believe it or not, Johnson & Johnson (NYSE: JNJ) and Abbvie (NYSE: ABBV) are also in the PSYK ETF.
Since this is such a young industry right now, there’s been plenty of skepticism on the future outlook (reminder you of something?). Regardless, there are plenty of psychedelic penny stocks to watch right now. The biggest point of focus for most will be on progress made in R&D to launch a viable psychedelic treatment platform eventually.
Thanks to certain decriminalization efforts, there’s also a push for legalizing things like magic mushrooms for recreational use. This is something our friends in Denver, Oregon, and Washington, D.C. are likely familiar with.
Psychedelic Penny Stocks To Watch
This is a blooming industry (no pun intended). So it might not be a bad idea to at least start looking for some psychedelic penny stocks to watch.
- Havn Life Sciences (OTC: HAVLF)(CSE: HAVN)
- MindeMed (OTC: MMEDF) (NEO: MMED)
- Seelos Therapeutics (NASDAQ: SEEL)
Penny Stocks To Watch With Strong Leadership: Havn Life Sciences (OTC: HAVLF)
I mentioned that some of the former trailblazers of cannabis got involved in psychedelics. Havn is one of the companies that fit the mold. While its management team comprises financial markets professionals like CEO Tim Moore and Eli Dusenbury, its makeup also includes names that were part of the early cannabis boom. For instance, Gary Long, its Chief Scientific Officer, was the former CSO at Aphria Inc. (NASDAQ: APHA)
You’ve also got the former CEO of Aphria, Vic Neufeld sitting as the Executive Chairman of Havn. Under his direction, Aphria became one of the top names in cannabis just as the industry was getting off the ground. Now these same people are getting behind the psychedelic boom and have chosen to take positions with Havn to do so.
Some psychedelic companies are simply growing mushrooms and selling inconsistent products. Havn Life has gone above and beyond to create a gold standard of psychedelic and new age, natural health products.
In fact, just last week, the company signed a letter of intent with nutraceutical company Hypha Wellness Jamaica Psilocybin. The focus is jointly researching and producing standardized powdered homogenized psilocybin mushroom active pharmaceutical ingredient (API) products. Havn Life is also developing a production facility in Jamaica to produce psychedelic mushroom API.
Havn aims to supply as many researchers as it can with naturally derived compounds. This partnership could bring it one step closer to this goal of building an international psychedelic supply chain framework.
Penny Stocks To Watch Bringing Tech & Psychedelics Together: MindeMed (OTC: MMEDF)
Aside from being one of the first public psychedelic companies, MindMed has developed a novel platform for psychedelic-assisted treatments. Last quarter, the company completed the acquisition of HealthMode. They utilize AI to enable digital measurement & ultimately increase the precision and speed of clinical research & patient monitoring.
This acquisition marked the start of the company’s “MindMed 2.0,” building a mental health tech platform. CEO J.R. Rahn explained that “In effect, we see a future mental health treatment paradigm where potential drug products such as our LSD experiential therapy might be prescribed right alongside software application programming interfaces (APIs) to prepare the patient for treatment and optimally monitor the after-care of one’s anxiety disorder.”
Whether you support it or not, psychedelic research has lead to new findings in the fight against the opioid crisis. With the addition of technology getting folded into a treatment regimen, it could be something that the industry itself begins adopting. In this sense, MindMed could be one of the early adopters to watch.
Psychedelic Penny Stocks To Watch With Ongoing Trials: Seelos Therapeutics (NASDAQ: SEEL)
Seelos was one of the psychedelic penny stocks we actually identified as such. At the time, the company was working on one of the treatments in its pipeline unrelated to psychedelics. Since Seelos had its SLS-002 in its pipeline, it became a small source of speculation that SEEL could be a psychedelic penny stock to watch. SLS-002 is the company’s intranasal racemic ketamine treatment used as a fast-acting method for stopping suicidal ideation in patients.
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Since being put into the PSYK ETF, Seelos has become much more vocal on its SLS-002 treatment. In fact, the company just entered into an amendment to a 3-year old agreement with Vyera Pharmaceuticals to repurchase a significant portion of the royalties payable on future sales of SLS-002.
Management said that this should return “meaningful” future value to shareholders. Since there’s a current study of SLS-002 going through patient dosing right now, it could be a time to follow Seelos. The last patient was expected to complete Part 1 of the study this week. Open-label could come out this quarter according to Seelos.