13 Best Psychedelic Stocks to Invest in Now

Page 11 of 11

1. Alkermes plc (NASDAQ:ALKS)

Number of Hedge Fund Holders: 44 

Alkermes plc (NASDAQ:ALKS) tops our list for being one of the best psychedelic stocks. It is an Ireland-based biopharmaceutical company with U.S. operations, and specializes in treatments for complex psychiatric and neurological conditions, including alcohol and opioid dependence, schizophrenia, and bipolar I disorder. The company leverages its neuroscience expertise to develop innovative therapies, with an active pipeline targeting disorders such as narcolepsy and idiopathic hypersomnia.

A major focus is alixorexton (formerly ALKS 2680), a novel oral orexin 2 receptor agonist currently in Phase 2 trials for narcolepsy types 1 and 2, as well as idiopathic hypersomnia. Enrollment in the Vibrance-1 Phase 2 study for narcolepsy type 1 has been completed, with topline data expected in early Q3 2025. Early Phase 1/1b results indicate the drug is well-tolerated, improves wakefulness, and shows no cardiac safety concerns. Detailed findings will be presented at the World Sleep Congress 2025, highlighting patient-reported outcomes and efficacy. This development underscores Alkermes plc (NASDAQ:ALKS)’ commitment to addressing unmet needs in sleep disorders.

Alongside pipeline progress, Alkermes plc (NASDAQ:ALKS) continues strong commercial performance with products like VIVITROL, ARISTADA, and LYBALVI, the latter showing notable year-over-year revenue growth. The company reinvests profits into research and development rather than dividends, maintaining a robust cash position to support innovation. Recent survey findings on alcohol use disorder further illustrate the corporation’s patient-centric approach, emphasizing its strategic focus on combining commercial success with cutting-edge neuroscience therapies.

While we acknowledge the potential of ALKS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALKS and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 11 of 11