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Top 10 Psychedelic Companies That Should Be on Your Radar

The psychedelic industry is changing and growing rapidly. Psychedelic medicines are being catapulted into the mainstream, and these top 10 psychedelic…



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The psychedelic industry is changing and growing rapidly. Psychedelic medicines are being catapulted into the mainstream, and these top 10 psychedelic companies are the companies that are bound to make a splash.

There was a lot of hype around psychedelic stocks when the first companies went public just a few years ago. At the time, it was difficult to assess which companies truly had what it takes to build a successful business in a completely novel industry. 

Creating a business to serve a market that doesn’t exist yet is no easy task. Some companies are already failing to accomplish this. However, others have proven their ability to adjust to the complex and shifting environment of the emerging psychedelic industry. 

Despite less-than-optimal stock market conditions, these companies have a promising future. And, with most companies undervalued right now, it is a great time to buy. If you are interested in investing in the psychedelic industry, these are the ten companies that should be on your radar.

  1. Numinus

Numinus is number one on our list because the company has built a strong foundation and is uniquely positioned to capitalize on the upcoming rollout of MDMA-assisted therapy. 

In addition, Numinus is one of the few companies in the psychedelic space with significant revenue growth. Most companies are just eating money at this point— which is to be expected with biotech companies. However, even clinic companies are struggling to produce significant revenue and profit margins. On the contrary, Numinus has shown positive growth and an ability to create a viable strategy for the future. 

Numinus has utilized a strategy that sets the company up to start expediting the rollout of the MAPS MDMA-assisted therapy as soon as it is FDA-approved, which is expected to happen in the first half of 2024. The company has even partnered with MAPS to offer therapist training programs in addition to its unique clinic structure. 

Numinus is going to be one of the first psychedelic companies to reach profitability, with most other businesses in the sector lagging years behind. The company has already shown its ability to strategize and pivot to maximize revenue and profit margin. Between a proven track record and a solid business plan going forward, it is likely that Numinus will maintain its current position at the top of the industry. 

  1. Compass Pathways

COMPASS Pathways takes second place because the company will (very likely) be the second to get a psychedelic drug FDA-approved— following the approval of MDMA for PTSD. 

Unlike most other psychedelic biotech companies, Compass only has one drug in its pipeline. This could be seen as risky. However, the synthetic psilocybin drug, which goes by the name COMP360, has already shown efficacy in its phase 2 clinical trials. 

The drug is currently undergoing a phase 3 trial for treatment-resistant depression, and Compass expects an FDA approval by 2027. The drug is also in phase 2 trials for anorexia nervosa and PTSD. 

With an already solid cash position, the company recently announced a private placement which puts another $125 million in their hands to support clinical trials. In the press release, CEO Kabir Nath said, “We expect that the net proceeds will allow us to advance our pivotal phase 3 program in TRD and achieve important milestones in the development of COMP360. We view this investment as a validation of the potential of psychedelic medicine and the importance of a rigorous and evidence-based approach.”

Everything points to Compass being the first company to bring a psychedelic drug to market for the treatment of depression, which has a massive market potential. The next company to bring a drug to market will be at least two years behind Compass, putting the program in a unique position to create a monopoly on the market. 

  1. Red Light Holland

Red Light Holland is the only company in the psychedelic industry of its kind. It is the only public company that alludes to the colorful underground world of psychedelics while keeping everything legal and above ground. 

The company is building a vast collection of brands in various areas of the mushroom business. Currently, the main focus is on nutritional mushrooms since that market has a greater immediate potential. However, they also cultivate and sell magic mushroom truffles in the Netherlands, and hope to expand as more markets become available. 

What makes Red Light Holland unique is its commitment to not throwing money into projects that would only be profitable in an imaginary market. Several companies have invested huge amounts of capital into projects that depend on the development of laws and markets in a very specific manner. Whether or not things will actually work out is uncertain.

These companies often fail when things fail to turn out as expected. Instead, Red Light Holland is focusing on building brands that have immediate potential for revenue growth while keeping an eye on emerging markets to jump on opportunities as they become available. 

  1. Atai Life Sciences 

Atai Life Sciences has been one of the big players since the beginning, and it’s still going strong. Though the company’s pipeline isn’t moving as fast as some others, they are taking a strategic approach to drug development and are strongly positioned within the industry. 

Atai holds about 20% ownership of our number two company— Compass Pathways. This positions Atai to capitalize on the commercialization of COMP360, which will hit the market well before any of its own drugs do. 

In addition to the stake in COMP360, Atai has a robust pipeline with over half a dozen clinical trial programs underway. The diversity of their portfolio mitigates some risk for investors by not putting all their eggs in one basket. That being said, it also hikes up the cash burn rate quite a bit. 

It is not yet clear which of the company’s drugs has the greatest potential. That information will be available in the next 1-2 years, at which point the potential of the company will be easier to gauge. 

  1. Awakn Life Sciences

Awakn is a drug development company that has garnered attention for its phase 3 study testing R-ketamine for the treatment of extreme alcohol use disorder. This is an indication with few efficacious treatment options, and Awakn will likely be the first company to bring a psychedelic treatment to market for it. This was also the first phase 3 psychedelic trial to ever receive government funding. 

At this rate, the company will have a drug to market in the next few years, and the cost of doing so will be significantly lower than what most companies are forced to invest in their clinical programs

  1. GH Research

GH Research is a biotech company with a focus on 5-MeO-DMT. The company has three formulations, each with a unique delivery method. In an early study, 87% of patients with treatment-resistant depression were brought into rapid remission. 

Though the company is still early in the clinical trial process, it has a significant amount of capital to push its drug candidates through the pipeline. On June 30, 2023, GH Research had $238.1 million in cash. With such a narrow pipeline, the cash on hand should get the company well on its way to commercialization— given that phase 2 and 3 trials are successful.

  1. Beckley Psytech

Unlike all the other companies on this list, Beckley Psytech is not a public company. However, it will likely play an important role in the psychedelic industry, so it is definitely worth keeping an eye on its work. 

The company was founded by one of the main pioneers of this industry— Amanda Fielding. She has been fighting for the legalization of psychedelics ever since they were made illegal. Beckley Psytech was started to bring psychedelic treatment to the masses through the pharmaceutical route, and they are on track to do just that. 

The main program in the company’s pipeline is an intranasal formulation of 5-Meo-DMT. The drug is currently in phase 2 trials for treatment-resistant depression and alcohol use disorder. At this rate, Beckley Psytech may be the first company to bring a 5-MeO-DMT drug to market. 

The short-duration nature of this drug makes it unique. Several companies are working to create new psychedelic-inspired drugs that have a shorter trip than traditional psychedelics, but those drugs won’t be available for quite a while. This, on the other hand, could be one of the first short-duration psychedelics to hit the market— something that is desirable for companies, insurance providers, and patients because of the need for fewer resources to carry out treatment. 

  1. Seelos Therapeutics

Seelos Therapeutics is focused specifically on central nervous system disorders and rare diseases. The company is targeting indications with few viable treatment options that few other companies in the space are going after.

Depression, PTSD, and anxiety are some of the more common indications that psychedelic biotech companies are targeting. With those indications, it is a game of who can get to the finish line first. The indications that Seelos is targeting, on the other hand, have very little competition, which gives them the upper hand. 

  1. Filament Health

Filament Health is one of the few biotech companies focusing on natural psychedelics. This is rare because it is impossible to patent nature, which makes it difficult to profit from it.

This company is still in its early stages but has the potential. They are exploring the benefits of botanical-extracted psychedelics— something that very few companies are doing. Filament continues to show positive growth with its drug candidates and ability to raise additional capital.

  1. MindMed

MindMed is certainly a company to keep an eye on. However, they have moved to the bottom of the list due to some events that have caused volatility in its stock and uncertainty with investors. 

The stock was popular among retail investors when the company first went public. That popularity grew with the attention of meme-stock idol Jake Freeman. However, that quickly changed from a positive to a negative when the Freeman family became the instigators of an attempted hostile takeover of the company.

Nevertheless, the company has a strong pipeline and cash position. Data on the efficacy of its lead candidate, MM-120, for treating generalized anxiety disorder and ADHD should be available by the end of 2023. In addition, the company had $116.9 million in cash at the end of Q2 2023 and recently announced a $50 million credit facility.

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