In this article, we will be taking a look at the 13 Best Psychedelic Stocks to Invest in Now.
Unlike drugs such as cocaine or marijuana, psychedelics create an “alternate reality” by altering feelings, thoughts, and energy levels. This class includes substances like LSD and plant-derived chemicals, which often lead to spiritual experiences. Psychedelics fall into two main groups: serotonergic drugs (like LSD) and empathogens or dissociatives (like PCP). Beyond recreation, they are being studied for treating opiate addiction, severe depression, panic disorder, and PTSD.
Venture capitalists have played a significant role in the resurgence of interest in psychedelics. Investor interest in startups in this field surged around the start of 2020, a period known as the “psychedelic renaissance.”
Psychedelic-focused pharmaceutical companies are pursuing government approvals as hallucinogens like psilocybin show promise in treating conditions such as schizophrenia and depression. The U.S. psychedelic drugs market is expected to grow from $4.51 billion in 2025 to $15.62 billion by 2032 (CAGR 16.8%), while the global market is projected to hit $11.93 billion by 2029 (CAGR 16.9%). Psilocybin is the most widely used psychedelic in the U.S., with 8 million adults reporting use in 2023. LSD usage is on the rise, particularly among 18–25-year-olds, and its market is projected to grow from $145.9 million in 2024 to $265.7 million by 2034. MDMA continues to gain traction in PTSD research, and ketamine has drawn attention for depression treatment, highlighted by FDA approval of Spravato nasal spray.
Growing mental health problems, the need for alternative therapies, and legislative changes as more US states and localities legalize or decriminalize psychedelics are driving the market’s expansion. Psychedelic substances are demonstrating therapeutic promise in the treatment of addiction, PTSD, anxiety, and depression. Their medicinal uses are also growing as a result of ongoing research and development.
Photo by Florian van Duyn on Unsplash
Our Methodology
For our methodology, we first identified the top 10 holdings of the AdvisorShares Psychedelics ETF. We then ranked these stocks according to the total number of hedge fund holders, based on data from Insider Monkey for Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the best psychedelic stocks to invest in now.
13. NRx Pharmaceuticals, Inc. (NASDAQ:NRXP)
Number of Hedge Fund Holders: 4
NRx Pharmaceuticals, Inc. (NASDAQ:NRXP), a clinical-stage biopharmaceutical company, is focused on developing NMDA-based therapies for central nervous system disorders, including suicidal depression, chronic pain, and PTSD. Its lead candidates, NRX-100, a preservative-free intravenous ketamine formulation, and NRX-101, an oral combination therapy, are at the forefront of the company’s innovative approach. Recently, NRX-100 received an expanded FDA Fast Track designation for suicidal ideation across all depression types, broadening its potential U.S. patient base to around 13 million adults.
The company has also made significant regulatory progress. NRXP submitted manufacturing data supporting the New Drug Application (NDA) for NRX-101, which holds Breakthrough Therapy designation for suicidal bipolar depression. Additionally, an Abbreviated New Drug Application (ANDA) was filed for NRX-100 to provide a preservative-free alternative amid ongoing ketamine shortages in the U.S.
Beyond drug development, NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) is expanding its clinical footprint through its subsidiary HOPE Therapeutics, which recently acquired Dura Medical and is in the process of acquiring a stake in Cohen and Associates clinics. These moves aim to enhance interventional psychiatry services, strengthen patient care infrastructure, and drive revenue growth, creating a unique integrated model that combines therapeutic innovation with direct care delivery.
12. Psyence Biomedical Ltd (NASDAQ:PBM)
Number of Hedge Fund Holders: 6
Psyence Biomedical Ltd. (NASDAQ:PBM) is a biopharmaceutical company developing naturally derived psychedelic medicines, including psilocybin and ibogaine, targeting serious mental health conditions in palliative care and other complex disorders. It stands thirteenth on our list among the best psychedelic stocks. The company has recently made notable strides in both clinical progress and strategic positioning.
In August 2025, Psyence Biomedical Ltd. (NASDAQ:PBM) BioMed expanded patient eligibility for its clinical trials by removing the requirement that cancer patients be terminally diagnosed, significantly broadening the potential patient pool. Three clinical trial sites have been activated, and patient enrollment is expected to accelerate, supported by a Scientific Advisory Board of leading experts in neuroscience and psychedelic medicine.
The business also achieved a breakthrough in psychedelic drug production through its collaboration with PsyLabs, producing a high-purity ibogaine total alkaloid extract that meets global pharmaceutical standards. This milestone strengthens the corporation’s ability to supply active pharmaceutical ingredients for clinical research and therapeutic applications and has contributed to positive investor sentiment.
Financially, Psyence Biomedical Ltd. (NASDAQ:PBM) has stabilized, with over $11 million in cash and no debt, following a reverse stock split earlier in 2025 to regain Nasdaq compliance. Its unique operational presence in Africa, combined with regulatory and clinical advancements, provides a competitive edge in the emerging psychedelic medicine sector.
Looking ahead, the company will present at the H.C. Wainwright 27th Annual Global Investment Conference in September 2025, highlighting its clinical pipeline and business strategy.
11. Relmada Therapeutics, Inc. (NASDAQ:RLMD)
Number of Hedge Fund Holders: 7
Relmada Therapeutics, Inc. (NASDAQ:RLMD) is a clinical-stage biotechnology company developing therapies for oncology and central nervous system (CNS) disorders. Its leading candidates include NDV-01, a controlled-release formulation of gemcitabine and docetaxel for non-muscle invasive bladder cancer (NMIBC), and sepranolone, a neurosteroid in development for conditions such as Prader-Willi Syndrome and Tourette Syndrome.
In August 2025, the company reported strong second-quarter results and six-month follow-up data from its Phase 2 NDV-01 study, showing a 91% overall response rate with a favorable safety profile. Enrollment is ongoing, with nine- and twelve-month updates expected, and a Phase 3 registration trial planned for the first half of 2026. In parallel, Relmada Therapeutics, Inc. (NASDAQ:RLMD) is preparing a Phase 2 trial of sepranolone in Prader-Willi Syndrome within the same timeframe.
The near-term pipeline is anchored by NDV-01’s potential as a transformative bladder cancer therapy, while advancing sepranolone reflects the business’s commitment to tackling severe metabolic and neurological disorders with limited treatment options. For investors monitoring emerging trends alongside the best psychedelic stocks, RLMD’s dual-focus strategy highlights the growing appeal of companies pursuing innovative, high-impact therapies.
By pursuing a dual-focus strategy in oncology and neurosteroid therapy, Relmada Therapeutics, Inc. (NASDAQ:RLMD) positions itself at the forefront of biopharma innovation. The positive NDV-01 results and upcoming sepranolone trials highlight accelerating clinical progress, a diversified pipeline, and the potential to deliver breakthrough treatments across high-need therapeutic areas.
10. Cybin Inc. (NYSE:CYBN)
Number of Hedge Fund Holders: 9
Cybin Inc. (NYSE:CYBN) is a clinical-stage neuropsychiatry company developing psychedelic-based treatments for major depressive disorder (MDD) and generalized anxiety disorder (GAD). Its pipeline includes proprietary compounds CYB003, a deuterated psilocin analog, and CYB004, a deuterated N, N-dimethyltryptamine molecule, aimed at providing innovative alternatives for patients with inadequate responses to traditional therapies.
As of August 2025, Cybin Inc. (NYSE:CYBN) has achieved key clinical and regulatory milestones. The company received approvals from European authorities and the UK’s MHRA to initiate EMBRACE, its second pivotal Phase 3 study under the PARADIGM program. EMBRACE will enroll approximately 330 participants across the US, UK, Europe, and Australia to evaluate CYB003 as an adjunctive treatment for moderate to severe MDD over six weeks. Meanwhile, enrollment for the Phase 2 trial of CYB004 in GAD is expected to be completed this month, setting the stage for upcoming data readouts.
Supporting these clinical efforts, Cybin Inc. (NYSE:CYBN) secured up to $500 million in convertible debenture financing from High Trail Special Situations LLC. The funds will accelerate clinical programs, scale up manufacturing, expand intellectual property (over 90 issued patents and 230 pending), and prepare for potential commercialization.
The business’s strategic momentum highlights its commitment to advancing psychedelic therapeutics for mental health. With multinational trials, robust financing, and promising early data, such as a 71% remission rate in prior CYB003 Phase 2 studies, the company is positioning itself as a leader in next-generation treatments for depression and anxiety. These developments underscore Cybin Inc. (NYSE:CYBN)’s potential to address significant unmet needs and transform neuropsychiatric care with innovative, durable therapies.
9. GH Research PLC (NASDAQ:GHRS)
Number of Hedge Fund Holders: 12
GH Research PLC (NASDAQ:GHRS) is a clinical-stage biopharmaceutical company developing innovative therapies for treatment-resistant depression (TRD) and other psychiatric and neurological disorders. Its lead candidate, GH001, is an inhalable mebufotenin product currently in Phase 2b trials for TRD, with additional Phase 2a studies targeting bipolar II disorder and postpartum depression. The company is also developing GH002 and GH003, intravenous and intranasal formulations, to expand treatment options for neurological conditions.
Recent developments highlight significant clinical progress. The Phase 2b trial of GH001 reported a 73% remission rate at six months with infrequent treatments and no psychotherapy required, alongside a strong safety profile with no serious adverse events. GH Research is addressing the FDA’s remaining clinical hold on its Investigational New Drug (IND) application, aiming to submit a full response by mid-2025 and preparing for a global pivotal clinical program in 2026. Positive Phase 1 results for GH002 further support the company’s expansion strategy, with an IND submission planned for Q4 2025, positioning it among the best psychedelic stocks in the market.
GH Research PLC (NASDAQ:GHRS) has actively shared clinical data at major conferences, including the American Society of Clinical Psychopharmacology Annual Meeting 2025, demonstrating GH001’s efficacy across multiple psychiatric disorders. Preparations for pivotal trials are ongoing, with contract research organization selection and regulatory strategies advancing in parallel.
8. Vistagen Therapeutics, Inc. (NASDAQ:VTGN)
Number of Hedge Fund Holders: 12
Vistagen Therapeutics, Inc. (NASDAQ:VTGN) is a late clinical-stage biopharmaceutical company developing neuroscience-focused therapies, including innovative intranasal pherine compounds. Its lead candidate, fasedienol, targets social anxiety disorder (SAD), with Phase 3 PALISADE-3 trial results expected in Q4 2025, a milestone that could be pivotal for the company. The business is also advancing other candidates, such as PH80 for menopausal hot flashes and itruvone for major depressive disorder, reflecting a diversified neuropsychiatric pipeline.
Recent efforts have focused on enhancing trial quality, regulatory communication, and research collaborations. Financially, the corporation remains strong with around $63 million in cash equivalents as of June 2025, supporting ongoing R&D initiatives. The mid-2025 appointment of a Chief Corporate Development Officer signals a strategic push toward business development and partnership expansion.
The upcoming PALISADE-3 readout is a key event for investors, given the substantial unmet need in SAD. Follow-up data from PALISADE-4 is also expected in the first half of 2026, indicating continued pipeline momentum. Vistagen Therapeutics, Inc. (NASDAQ:VTGN)’s emphasis on intranasal pherine compounds highlights a novel mechanism of action in treating neuropsychiatric conditions, setting it apart in a competitive landscape.
While the company faced operational challenges, including a trial site closure in Pennsylvania due to recruitment issues, overall clinical progress remains on track. Market sentiment shows rising technical momentum, though outcomes and competition present inherent risks.
7. Bright Minds Biosciences Inc. (NASDAQ:DRUG)
Number of Hedge Fund Holders: 13
Bright Minds Biosciences Inc. (NASDAQ:DRUG) is a biotechnology company developing highly selective 5-HT2 agonists to treat drug-resistant epilepsy, depression, and other CNS disorders. Its pipeline focuses on breakthrough serotonergic compounds designed to address unmet medical needs in neurological and neuropsychiatric conditions.
Bright Minds Biosciences Inc. (NASDAQ:DRUG) is actively advancing its clinical programs, including the Phase 2 BREAKTHROUGH study of BMB-101, a selective 5-HT2C agonist targeting adult patients with classic Absence Epilepsy and Developmental and Epileptic Encephalopathy (DEE). The trial evaluates safety, tolerability, and efficacy, reflecting the business’s focus on drug-resistant epilepsy and other challenging CNS conditions, placing it among the best psychedelic stocks for investors seeking neuropsychiatric innovation.
The corporation is also enhancing its scientific leadership, expanding its Scientific Advisory Board with five epilepsy research experts to support clinical and development strategies. The company will present at four major healthcare conferences between August and September 2025, including the International Epilepsy Congress in Lisbon and the Cantor Global Healthcare Conference, with the latter webcast live for investors.
Market interest in Bright Minds Biosciences Inc. (NASDAQ:DRUG) is growing, with recent stock gains driven by clinical progress and increased trading volume. Analysts maintain a Strong Buy rating, with a 12-month price target averaging $85, highlighting confidence in the company’s pipeline and therapeutic potential.
6. Neuronetics, Inc. (NASDAQ:STIM)
Number of Hedge Fund Holders: 15
Neuronetics, Inc. (NASDAQ:STIM) is a commercial-stage medical technology company specializing in neurohealth solutions, including its flagship NeuroStar Advanced Therapy System, a leading transcranial magnetic stimulation (TMS) treatment for major depressive disorder and obsessive-compulsive disorder. The company integrates technology development with direct patient care through Greenbrook TMS centers and the Better Me Provider program, combining innovation with accessibility.
In Q2 2025, Neuronetics, Inc. (NASDAQ:STIM) reported $38.1 million in revenue, marking a 132% year-over-year increase, driven by Greenbrook integration and expansion to 95 clinics across 15 states. The Better Me Program has accelerated patient access, while the company is expanding its SPRAVATO (esketamine) program to complement TMS therapy in treating resistant depression. Revenue for fiscal 2025 is projected between $149 million and $155 million, with positive cash flow from operations anticipated by Q4 2025.
The business continues investing in growth and talent, including inducement awards for new employees, while navigating ongoing challenges in profitability and stock volatility. The company recently gained FDA clearance for NeuroStar in adolescents, establishing it as a first-line therapy without prior medication failure and highlighting its innovative market position.
Investor engagement remains a priority, with recent presentations at the August 2025 Canaccord Genuity Growth Conference outlining strategic expansion, clinical progress, and market opportunities. By combining advanced TMS technology with a broad treatment network and ongoing program expansion, Neuronetics, Inc. (NASDAQ:STIM) positions itself as a distinctive player in the evolving neurohealth sector, targeting both adult and adolescent populations while driving adoption of non-pharmacologic therapies.
5. Atai Life Sciences N.V. (NASDAQ:ATAI)
Number of Hedge Fund Holders: 17
Atai Life Sciences N.V. (NASDAQ:ATAI), a clinical-stage biopharmaceutical company, is developing innovative psychedelic-based treatments for mental health disorders, including treatment-resistant depression (TRD). The company focuses on therapies with short in-clinic treatment durations that provide rapid and durable antidepressant effects.
Recent developments highlight a strategic merger with Beckley Psytech, aimed at consolidating expertise and late-stage assets to accelerate the delivery of impactful mental health therapies. This move is expected to strengthen the corporation’s position as a global leader in psychedelic therapeutics, making Atai Life Sciences N.V. (NASDAQ:ATAI) one of the best psychedelic stocks for investors focused on innovative treatments.
In clinical progress, BPL-003 (intranasal mebufotenin benzoate) showed positive topline results from the blinded stage of its Phase 2b trial in TRD patients. The therapy met primary and secondary endpoints, demonstrating rapid, robust, and durable antidepressant effects lasting up to eight weeks after a single dose. Results from the open-label extension are anticipated in Q3 2025. Atai Life Sciences N.V. (NASDAQ:ATAI) plans to file an End-of-Phase 2 meeting request with the FDA in Q3 2025 to advance BPL-003’s clinical development pathway.
Financially, Atai Life Sciences N.V. (NASDAQ:ATAI) has raised nearly $140 million in 2025, reflecting strong investor confidence in its strategy and pipeline. Positive clinical data and strategic initiatives drove significant stock momentum in August 2025, underscoring market optimism.
4. Mind Medicine (MindMed) Inc. (NASDAQ:MNMD)
Number of Hedge Fund Holders: 23
Mind Medicine (MindMed) Inc. (NASDAQ:MNMD), a clinical-stage biopharmaceutical company, is developing innovative treatments for brain health disorders, focusing on generalized anxiety disorder (GAD) and major depressive disorder (MDD). Its lead candidate, MM120 ODT (Lysergide D-tartrate), has received FDA Breakthrough Therapy Designation and is progressing through three pivotal Phase 3 trials, while MM402 (R(-)-MDMA) is in Phase 1 trials for Autism Spectrum Disorder.
Recent corporate updates in August 2025 highlighted significant clinical momentum. The Voyage study for GAD is expected to report results in the first half of 2026, with Panorama (GAD) and Emerge (MDD) topline data anticipated in the second half of 2026. These trials aim to offer fast-acting, durable treatment options for large, underserved patient populations, potentially transforming psychiatric care.
Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) maintains a strong financial position, with $238 million in cash and investments as of June 2025, supporting operations into 2027 and ensuring sustained progress across its Phase 3 programs. This stability allows the corporation to advance high-priority psychiatric therapies without immediate funding pressures.
The business’s strategic focus on high-burden disorders addresses outdated treatment paradigms, as many patients fail first-line therapies, and the last FDA approval for GAD was in 2007. MM120 ODT’s potential for rapid, intermittent dosing positions it as a transformative therapy for GAD and MDD.
Additionally, new employee inducement grants demonstrate efforts to retain talent critical for advancing the Mind Medicine (MindMed) Inc. (NASDAQ:MNMD)’s ambitious development agenda.
3. COMPASS Pathways PLC (NASDAQ:CMPS)
Number of Hedge Fund Holders: 24
COMPASS Pathways Plc (NASDAQ:CMPS), a biotechnology company specializing in innovative mental health treatments, is developing COMP360, a psilocybin-based therapy in late-stage development for treatment-resistant depression (TRD). COMP360 has received FDA Breakthrough Therapy designation and has demonstrated promising efficacy in clinical trials.
COMPASS Pathways Plc (NASDAQ:CMPS) recently reported positive primary endpoint results from its first Phase 3 trial, showing a significant reduction in depression symptoms six weeks after a single dose. These results build on prior Phase 2b success, reinforcing COMP360’s potential as a novel psychiatric therapy. The second Phase 3 trial is progressing, with 26-week data expected in the second half of 2026. The business is exploring options for accelerated regulatory filing to bring the therapy to patients more quickly.
Alongside clinical progress, the corporation is advancing commercialization plans to ensure rapid accessibility post-approval. The company maintains a strong cash position of $221.9 million as of June 30, 2025, providing a runway into 2027 for ongoing development and operations. Leadership was bolstered by the appointment of Justin Gover, former CEO of GW Pharmaceuticals, to the Board of Directors, adding governance expertise and strategic oversight.
COMPASS Pathways Plc (NASDAQ:CMPS) is also investigating COMP360 for other psychiatric conditions, including post-traumatic stress disorder (PTSD) and anorexia nervosa, broadening the potential impact of its psychedelic therapy platform.
2. Sage Therapeutics, Inc. (NASDAQ:SAGE)
Number of Hedge Fund Holders: 32
Sage Therapeutics, Inc. (NASDAQ:SAGE) known for its FDA-approved postpartum depression drug Zurzuvae, is acquired by Supernus Pharmaceuticals in a deal valued at up to $795 million. The agreement, announced in June 2025, includes $561 million in cash and contingent value rights, aiming to expand Supernus’s neuropsychiatric portfolio while integrating Sage’s CNS discovery platform. The merger is expected to deliver up to $200 million in annual cost synergies and strengthen Supernus’s 2026 financial outlook.
Sage Therapeutics, Inc. (NASDAQ:SAGE) recently saw workforce reductions, with around 338 employees laid off in 2025. Despite the downsizing, the company continues to advance its clinical pipeline, focusing on SAGE-319 for neurodevelopmental disorders, with Phase 1 data expected by late 2025, and SAGE-324, targeting seizures in developmental and epileptic encephalopathies, with updates anticipated mid-year.
Earlier in 2025, Sage Therapeutics, Inc. (NASDAQ:SAGE) rejected a takeover offer from Biogen, citing undervaluation, signaling its strategic focus on maximizing shareholder value. The company remains committed to positioning Zurzuvae as a first-line therapy for postpartum depression, supported by expanded commercialization efforts including a strengthened sales force and digital marketing campaigns.
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.
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