Wednesday , 22 May 2024

36 Companies Researching 10 Psychedelic Substances

Data Bridge Market Research forecasts that the global psychedelics market will grow to almost $7B by 2027, representing a 3.3 times increase in just 7 years. This article identifies the 10 different psychedelic substances currently being studied and the names of those companies doing research with each of those substances

By Lorimer Wilson, Managing Editor of – Your KEY To Making Money!

Roughly 2 billion people, world wide, suffer from some form of a treatable mental health disorder and addiction/substance abuse therapy could easily prove to be the biggest investment driver of psychedelic stocks over the long term, supported by the high degree of insurance coverage available for addiction therapy. Below are the 10 psychedelic substances undergoing extensive research and the 36 companies that are involved in their research and development.

1. Ketamine

Ketamine, used primarily as an anesthetic in veterinary clinics, is the only psychedelic drug that is broadly legal today. Unfortunately, it has had the reputation of being used as a date rape or sexual assault drug as it can be slipped unnoticed into a drink causing the consumer to experience a loss of muscle function combined with only a dream-like awareness of what’s happening and not to being able to remember what happened the next day although they may have flashbacks of the event several weeks later. Go here for much more extensive information on Ketamine.

The above being said, ketamine is now being used to treat chronic pain, alcohol withdrawal management, and depression despite its addictive properties, toxicity and unpleasant hallucinogenic properties.

The major public companies currently involved in ketamine-based clinical-stage research are Field Trip Health (FTRPF), Seelos* (SEEL), Numinus (NUMIF), Awakn Life (AWKNF) and ATAI* (ATAI). In addition, another much smaller market cap company is also involved in mental health research using ketamine, namely, PharmaTher (PHRRF), for a total of 6 companies.

*Identifies the companies that are constituents in the munKNEE Pure-Play Psychedelic Compounds-Based Drug Stocks Index. 

2. Psilocybin

Psilocybin, the primary psychoactive ingredients in “magic mushrooms”, is the most widely-researched psychedelic substance today due to its minimal toxicity, non-addictive nature and powerful medicinal effect of generating new neural pathways that allow different regions within the brain to communicate in new and more effective ways. Go here for much more extensive information on Psilocybin.

Psilocybin will likely become the first psychedelic drug to be de-scheduled by a major government and legalized for medicinal use. Health Canada has already been granting special exemptions to allow patients with critical healthcare needs to be treated with psilocybin-based therapies. In the U.S., however, while psilocybin enjoys rapidly increasing grassroots support at the local and even state level, psychedelics research remains blocked at the federal level. Legal use and commercialization of psilocybin may advance much faster in the EU and UK via their “real-world evidence” pathway to drug approval that advances drugs that are proven safe substances, a category into which psilocybin fits.

Canada has approved 17 healthcare professionals to possess and use psilocybin to conduct professional training in psilocybin therapy focused on patients dealing with end-of-life distress, but marks the first step towards legal medicinal psychedelics use in Canada.

The major public companies involved in psilocybin research are Compass Pathways* (CMPS), Cybin Inc.* (CLXPF), Mind Medicine* (MNMD) and Mydecine (MYCOF).

In addition 16 much smaller market cap companies – Aion Therapeutics (AION), Bright Minds Biosciences (DRUG), Creso Pharma (COPHF) through its subsidiary Haluvenex Life Sciences, Filament Health (NEO:FH), HAVN Life Sciences (HAVLF), M2Bio Sciences (WUHN), Mindset Pharma (MSSTF), Neonmind Biosciences (NMDBF), Nova Mentis (NMLSF), PsyBio Therapeutics (PSYBF), Revive Therapeutics (RVVTF), Silo Wellness (SILO), Tryp Therapeutics (TRYP), Optimi Health (OPTHF), Psyence Group (PSYG) and Wesana Health (WESA) – are also doing research clinical-stage research using psilocybin for a total of 20 companies.


MDMA refers to 3,4-methylenedioxymethamphetamine and is more commonly known by its street drug name, “Ecstasy” or “Molly” (short for ‘molecular’), has a strong safety profile, produces feelings of emotional warmth, an increase in self-awareness and in empathy which make it a natural fit in those severely traumatized individuals with PTSD. Go here for much more extensive information on MDMA.

The 4 public companies involved in MDMA research are GH Research* (GHRS), Numinus (NUMIF), Mind Medicine* (MNMD) and ATAI* (ATAI)

4. LSD

LSD, known by its street drug name “acid”, is non-toxic and non-addictive and, along with psilocybin, is the most-researched psychedelic drug and, as such, its medicinal applications are generally more advanced than with other psychedelics. Go here for much more extensive information on LSD.

The above being said, however, while both psilocybin and MDMA have received Breakthrough Therapy Designation from the FDA, this has not yet been extended to LSD-based research making the path to legalization for LSD more uncertain than psilocybin in Canada and MDMA in the U.S.. Leading the way in LSD-based psychedelics research is MindMed Inc.* (MNMD).

5. Ibogaine

Ibogaine, a natural psychedelic drug derived from the iboga shrub, is much more toxic than psychedelics like psilocybin, MDMA and LSD, presenting some cardiac risks as well as other side effects such as seizures, paralysis and difficulty breathing although Ibogaine presents minimal health risks in a controlled medical setting. Despite these risks, however, research has shown that Ibogaine exhibits unique properties in neutralizing addictive cravings.

The 3 public companies involved in Ibogaine research are ATAI* (ATAI), Universal Ibogaine (IBO) and Mind Medicine* (MNMD) which is also doing research on an Ibogaine derivative, 18-MC.

6. DMT

Dimethyltryptamine (DMT), an extremely potent psychedelic compound, is the synthetic version of ayahuasca (see here). Because of its potency, DMT research is still at an early stage but it  offers important commercialization advantages in that it produces a rapid onset and a brief trip compared to experiential therapies using other psychedelic drugs that require expensive, multi-hour, supervised sessions by trained medical professionals. A DMT “trip” and therapy session can be over in under an hour making such a treatment much cheaper than other psychedelic drugs, raising the prospect for greater patient affordability and greater resultant appeal to health insurers. Go here for much more extensive information on DMT.

The 7 public companies involved in DMT research are Small Pharma (DMTTF), GH Research* (GHRS), Mind Medicine* (MNMD), Core One (CLABF) through its  subsidiary Akome Biotech Ltd., Entheon Biomedical (ENTBF), Mindset Pharma (MSSTF),  ATAI* (ATAI) and Algernon (AGNPF).

7. Psilocybin Truffles

Truffles and mushrooms are part of the same fungus but produce different effects. Truffles grow underground as a vegetative colony known as mycelium and are generally smaller and wet while mushrooms are the fleshy, spore-bearing fruiting body of a fungus, and typically grow above ground.

Currently only one company, Red Light Holland (TRIP), produces, grows and sells “magic” truffles through existing smart shops operators and e-commerce platforms in the Netherlands where wet psilocybin-containing truffles are legal. Red Light Holland has a lab in St. Vincent and the Grenadines and holds several psychedelic licenses in the Caribbean to investigate the therapeutic possibilities of psilocybin and truffles for the treatment of age-related and psychiatric disorders.

8. Mescaline 

Mescaline is a naturally occurring psychoactive alkaloid with hallucinogenic properties derived from the San Pedro cactus, the Peruvian/Bolivian torch, the Peyote cactus (found predominantly in Mexico and the southwestern deserts of the U.S.) and two other varieties of peyote cacti and was first isolated in 1896 from the peyote plant. Interestingly, mescaline was legal in the United States until 1970, when then-President Richard Nixon launched a crackdown on psychedelics. Go here for much more extensive information on Mescaline.

Mescaline can be synthetically manufactured, and its extracted compound, similar in structure to adrenaline and noradrenaline, is recently being considered for its health benefits as a potential psychotherapeutic treatment in conditions such as substance abuse and depression and, as such, has the potential to carve out a significant share of the $70bn global mental health market.

The primary company researching the possible benefits of mescaline is BioNxt Solutions (BNXFT), formerly XPhyto Therapeutics Corp., which operates a range of research and development projects in both Canada and Germany and has expertise in using sublingual and transdermal therapeutics to deliver extremely precise doses, which could prove invaluable for micro-dosing mescaline and other psychedelics.

9. 5-MeO-DMT

5-MeO-DMT, which stands for 5-MethOxy-N,N-DiMeThyltryptamine but is better known by its nick name, “The Toad”, is derived from dried venom secreted by the Sonoran Desert (Bufo Alvarius) toad, also known as the Colorado River toad (Incilius alvarius). The Toad produces hallucinogenic, boundless experiences within one second of inhalation that lasts an average of 20 minutes). It creates a sustained enhancement of satisfaction with life, and the easing of anxiety, depression and post-traumatic stress disorder (PTSD).

Only GH Research* (GHRS) and Mindset Pharma (MSSTF) are currently the only clinical-stage bio-pharmaceutical companies dedicated to developing 5-MeO-DMT therapies.

10. MEAI

MEAI is short for 5-Methoxy-2-aminoindane, a psychoactive compound which produces a mild euphoric, alcohol-like tipsy experience and reduced desire to consume alcoholic beverages. As such, MEAI shows promise for Alcohol Use Disorder, in which an individual cannot limit their alcohol intake despite negative consequences and may also be used for binge drinking (described as 4 or more drinks in about 2 hours) which 1 in 6 adults do at least once a week in the U.S..)

The only company researching the possible benefits of MEAI is Clearmind Medicine (CMNDF).

Addiction/substance abuse therapy provides the most long-term commercialization potential for psychedelic drugs given the more than 1 billion nicotine addicts, 107 million alcoholics and 71 million drug use abusers worldwide and the +7.6 million deaths per year directly attributable to such substance abuse/addiction. (In comparison, depression and PTSD lead to approximately 800,000 suicide deaths per year, a shockingly high number, but dwarfed by the death toll from substance abuse.)


It is very early in the psychedelic drug industry’s evolution, so it is difficult to weed out the eventual winners in advance so it might be a good idea to own a number of the psychedelic drug companies highlighted above to have all your bases covered. To that end, Mind Medicine is involved in the research of 5 different substances, ATAI in 4, GH Research and Mindset in 3 and Numinus in 2. has joined to provide individual company research articles and specific stock recommendations in addition to munKNEE’s more general informative articles on the economy, the markets, and gold, silver, cannabis and psychedelic drug stock investing.
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