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Investing in the best psychedelic stocks today could be like getting in on the ground floor of the medical marijuana industry.
Investors who think they missed the explosion in pot stocks in 2018 need not worry.
Right now, there are newly legal, early-stage psychedelic medicine companies conducting trials that most of Wall Street is completely missing…
Just like people weren't sure if marijuana had any medical benefits back in 1996, microdoses of magic mushrooms, LSD, ketamine, MDMA, and DMT are now being tested for medical benefits of their own.
These studies have FDA approval. That means there is a real possibility some companies will win federal approval to sell these drugs.
And that's creating a brand-new opportunity for investors to get in on the ground floor of these psychedelic stocks to buy.
Kevin O'Leary from ABC's hit show "Shark Tank" has already invested millions in the psychedelic medicine space today. He believes there is a reasonable chance these companies can help people suffering from major diseases including Alzheimer's, anorexia, alcoholism, opioid addiction, depression, anxiety, PTSD, and much more…
And I agree with him.
That's because, the more you learn about the space, the more compelling the investment thesis becomes…
The laws are already changing. It's already being taken seriously as a medical solution. And researchers are able to conduct their studies in a safe way without having to worry about the feds kicking down their doors.
Thanks to the medical marijuana industry paving the way, there are already multiple publicly traded psychedelic medicine stocks that anyone can invest in.
But if you wait too long to learn, you'll likely miss it…
This is like getting the chance to buy Canopy Growth Corp. (NASDAQ: CGC) back in 2014, which would've given you a 767% gain by now…
Why Psychedelics Are the Future of Medicine
News that Colorado, Oregon, and Washington, D.C., legalized psychedelics for medical research in 2020 have received some mainstream media attention over the last year.
But few investors – especially those on Wall Street – have taken the time necessary to seriously learn about the industry and the potential medical solutions it may have.
That's where our advantage as retail investors lies today. We can get in before many of the big Wall Street firms figure it out.
The reason Colorado decriminalized "magic mushrooms," for example, is because the naturally occurring psychedelic component of the shroom called psilocybin is thought to have medical benefits – just like CBD in cannabis.
With Oregon, Washington, D.C., and the Canadian government passing similar laws to legalize psilocybin and other psychedelics for medical research, we'll have a lot more data soon.
From early trial results, I have a good feeling the medical professionals are on the right track here…and if they are successful, it's only a matter of time before psychedelic medicine stocks become the talk of Wall Street after skyrocketing like cannabis stocks did in 2018.
In this new phase 2 trial conducted by Johns Hopkins, researchers found that two psilocybin treatments reduced depression in 71% of the people tested with major depressive disorder (MDD) – which roughly 300 million people suffer from around the globe.
That was enough evidence for the FDA to give the trial a "breakthrough therapy designation." And more positive results should lead to a final phase 3 trial in about a year.
It's going to be awesome when we see similar breakthroughs with psilocybin as we've seen with CBD.
Another trial to receive the breakthrough therapy designation from the FDA is one studying whether MDMA-assisted psychotherapy can help heal the psychological and emotional damage caused by sexual assault, war, violent crime, and other traumas (PTSD).
After successful phase 2 trials, phase 3 is expected to be complete by 2022. That means the FDA could approve the treatment as soon as 2023.
It really doesn't get much better than making money while helping people suffering from serious health conditions.
And my favorite psychedelic stock to buy right now is a prime opportunity to do just that…
The Best Psychedelic Stock to Buy Right Now
The best psychedelic medicine on the market is a tiny company called Mind Medicine (MindMed) Inc. (OTCMKTS: MMEDF).
MindMed is a publicly traded company headquartered in Toronto, Canada.
Here's why you should consider putting a small portion of your portfolio (no more than 2%) in MMEDF…
MindMed is strictly focused on using psilocybin, LSD, MDMA, DMT, and iboga (a psychedelic plant native to rainforests in West Africa) to develop medicines that are showing promising results healing people with serious medical conditions.
To the delight of risk-adverse investors, these are FDA-approved trials. These aren't clandestine trials that could get shut down by the feds.
As Kevin O'Leary explains in this interview, MindMed has more trials going on all over the world than any other psychedelic medicine company out there.
The way he thinks about it (and I agree), this gives MindMed the most possible outcomes of success.
The truth is, we still don't know which psychedelic(s) will benefit those with various illnesses the most yet.
So, by trying the most legal molecular formulas as possible, MindMed gives itself the best chance of finding solutions before its competitors.
MindMed has many trials in phases 1 and 2 as we speak. It's important to note that there is no psychedelic medicine company in phase 3 yet. That's how early we still are…
And that's exactly why this is such a rare opportunity.
One promising MindMed trial is Project Layla, which is in phase 1 of evaluating the ibogaine derivative 18-MC (part of the iboga plant) for addiction treatment.
The preliminary data from the phase 1 trials has shown that the drug is safe and was well tolerated with no serious adverse events reported.
That means MindMed will soon initiate a phase 2a proof of concept study after meeting with the FDA to discuss the 18-MC development plan.
Another trial MindMed is further along in is called Project Lucy. This trial is already in phase 2b with the U.S. FDA to use low doses of LSD to treat anxiety disorders.
In phase 2b, the company intends to conduct a human efficacy trial where the LSD will be administered by a therapist who will be there the entire time to guide and calm the patient along their journey to reduce the anxiety they're suffering from.
The World Health Organization estimates that 284 million people are living with anxiety disorders around the globe. And it's the most common mental illness in the United States.
Fifty percent of ADHD patients suffer from anxiety disorders. And according to MindMed's website, "up to 90% of patients with generalized anxiety disorder have symptoms of another mental health problem, such as depression or substance abuse."
Speaking of substance abuse, MindMed's website also states that the opioids cost the United States alone $500 billion per year. That's a massive industry that's ripe for disruption.
There haven't been new painkiller medicines developed in 37 years. And psychedelic medicines combined with the professional therapy MindMed provides with Project Layla could very well be the answer.
At $3.25 per share, MMEDF is only a small-cap $1 billion business.
That's peanuts in the grand scheme of things. The risk/reward for investors is definitely worth paying attention to.
If MindMed is successful in these phase 2 trials and then phase 3, the company's stock could be worth a whole lot more than it is today.
MindMed could easily be worth 10x what it is today (a $10 billion company worth $32.50 per share) if one or more phase 3 trials are successful.
What is clear above all else is that we are in the very early stages of the psychedelic medicine industry.
There's no doubt that the risks are still high, but the rewards for investors with open minds willing to do the research could be absolutely massive.
Action to Take: Do more research on the individual trials MindMed is conducting, and consider allocating a 0.1% – 2% allocation to MMEDF stock. It could pay off big time, but if it doesn't, you won't lose much. The best way to limit your risk is with position sizing. Even if you do all the research you possibly can on the best psychedelic medicine stocks, there's no way of knowing for sure whether these companies will succeed or not today. If you do decide to take a position in a psychedelic medicine stock, make sure it's a small one. A "heads you win big, tails you don't lose that much," kind of bet.