Psychedelic Stock IPO the Next 1,000% Gain?

Psychedelic Mushrooms

Psychedelic stocks are quickly emerging as a red-hot sector.

Need evidence?

Take a look at Mind Medicine (NASDAQ: MNMD), a promising young biotech headquartered in New York, New York, that specializes in developing psychedelic drug therapies.

Shares were just uplisted from over-the-counter (OTC) markets to the NASDAQ stock exchange, and this stock is now up more than 1,000% in the last nine months. Take a look at the huge gains in the 12-month chart below.

I alerted our followers to Mind Med in September when I profiled the company in a weekly update.

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Mind Med is establishing itself as an early leader in a larger movement – the birth of psychedelic drug therapies. Researchers continue to find more evidence that the compounds found in psychedelics such as LSD, Magic Mushrooms, MDMA, and Ketamine have tremendous medical value. This is giving birth to a new industry that analysts expect to explode in the next five years.

According to leading market research firm Data Bridge, annual industry sales should top $6 billion by 2021.

The psychedelic drugs market is expected to gain market growth in the forecast period of 2021 to 2028. Data Bridge Market Research analyses that the market is growing with a CAGR of 11.5% in the forecast period of 2021 to 2028 and is expected to reach USD 6,433.94 million by 2028. The rising prevalence of mental depression and anxiety and availability of off-label drugs are the major drivers which has propelled the demand of the psychedelic drugs market in the forecast period.

If you want to invest in the psychedelic therapies industry and you missed the Mind Med trade, don’t worry. I see this same pattern unfolding once again.

This Could Be the Next Big Psychedelic Stock

A promising young psychedelics company that is backed by a Facebook billionaire is about to go public. This promising startup:

  • Is already one of the largest psychedelic biotechs in the world.
  • Has already landed $362 million in private capital.
  • Has partnered with 14 other companies.

Atai Life Sciences is about go public. Founded in 2018 and headquartered in Berlin, Germany, Atai is developing psychedelic drugs to treat mental health challenges such as depression, anxiety and addiction. Here are some more details from CNBC.

Atai is currently partnered with 14 companies focusing on drug development and other technologies. In exchange for a majority stake in the drugs and technologies they’re developing, ATAI helps the scientists to raise money, work with the regulators, and conduct clinical trials. None of ATAI’s drugs have been formally approved by regulators to date.

3 Reasons Atai is Positioned for Success

I see three key factors that will give Atai an edge over the competition.

#1 – Facebook Billionaire Invests $12 Million Into Atai

Facebook billionaire Peter Thiel is one of the largest investors in Atai, sinking $12 million into the company last November. Thiel is becoming the pied piper for psychedelic drugs. Thiel is also a primary investor in Compass Pathways (NASDAQ: CMPS), one of the largest psychedelic drug companies in the world with a market cap of $1.3 billion that went public last fall.

#2 – $362 Million Already Invested

Atai is a well-funded biotech startup. In a recent IPO filing, Atai disclosed that it has received $362 million in funding from private investors. Atai has been busy putting that capital to work, building an impressive portfolio of biotech companies, partnerships and psychedelic drug intellectual property (IP). This early start in the psychedelic drugs market gives Atai a valuable first-mover advantage over the newer competition.

#3 – A Fund of Psychedelic Companies

Atai has been hard at work investing the $362 million of private capital. Atai has already built an impressive portfolio of companies and partnerships that are developing new drug therapies. Below is the drug pipeline of companies Atai owns or has partnered with.

Atai Recently Filed to Go Public

Now, investors will have an opportunity to own a piece of Atai. This privately-owned company is about to go public. Here are some more details from CNBC.

ATAI Life Sciences, a biopharmaceutical company aiming to make psychedelic drugs to treat mental health disorders, announced that it is planning to raise $100 million in an initial public offering. It is planning to sell its shares on New York’s tech-focused Nasdaq market under the symbol ATAI. A date for the IPO has not been set.

This looks like an exciting IPO.

Experts project the psychedelic drug industry to double in the next five years and Atai has already established itself as an early leader in the space.

I’ll be watching Atai closely for our model portfolio and sending an alert to our members when the time is right. Want my next trade alert? Start your 2-week trial to CST!

Best,
Michael Vodicka
Editor, Cannabis Stock Trades


About the Author & Cannabis Stock Trades

Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.

Mr. Vodicka brings his expertise and guidance to the members of Cannabis Stock Trades.

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