The 5 Best Psychedelic Stocks to Watch in 2024

Helping new and experienced investors find the best healthcare investment opportunities within the psychedelics sector.

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Analysts believe the psychedelics market could be worth over $11 billion in a few years if more US states create friendlier laws to support critical players. The industry is fast-becoming a go-to market for all kinds of investors because of its potential growth. But what medicinal stocks have been prospering and have potential as the cannabis industry continues to grow? Find the best psychedelic stocks to invest in in this guide.

Key Players in the Psychedelic Stock Market

Atai Life Sciences (ATAI)

Are you looking to invest in medicinal stocks? You should consider Atai Life Sciences. The company is one of the high performers in the psychedelics market. It went public in 2021, but  is a major psychedelic drug producer today. It has also attracted various funding and is backed by former PayPal CEO Peter Thiel.

The German company also has strategic partners and has acquired smaller firms to solidify its presence in the US and beyond. It recently bought a 35.5% stake in Beckley Psytech, a smaller UK-based company.

At the time of writing, Atai Life Sciences’ market cap is valued at around $340 million. This indicates the firm’s strong presence in the market. Besides, ATAI stock has been performing impressively so far this year, with a year-to-date (YTD) growth of over 21%.

How much is ATAI worth? The market data at press time shows that the stock is worth nearly $2 per unit. It is an affordable marijuana stock under $10. So, it may be a good choice, depending on your goals. 

Compass Pathways (CMPS)

Compass Pathways is another company you can consider when thinking of investing in medicinal stocks. The company produces cannabis-based products for mental health care. It focuses on various research around providing care to people with depression.

Like many competitors, Compass has been receiving funding from investors. The company’s psilocybin research recently got a $285 million private fund to aid its efforts in developing medicines to address health issues like treatment-resistant depression (TRD), anorexia, and post-traumatic stress disorder (PTSD).

Currently, Compass is working on regulatory approval for its TRD medicine. It is also conducting clinical trials for its products and will release more updates soon. A successful authorization will further boost Compass Pathways’ standing in the psychedelic drugs market.

Compass Pathways founders listed its shares on NASDAQ in 2020. Since then, the company’s stock has improved. CMPS has a market cap of over $579 million at press time. However, it has a negative YTD growth of -5.6%. So, should you really invest in CMPS? The stock is available for nearly $8 per share. So, if you want an affordable investment, Compass Pathways may be worth a look.

Cybin (CYBN)

Cybin Inc. is another company with medicinal stocks you can buy. The company has different psychedelic medications for mental health patients. Since it opened its doors in 2019, the company has been attaining global expansion. In 2021, Cybin stocks got listed on the New York Stock Exchange (NYSE) .

It would go on to acquire Small Pharma in 2023. More importantly, Cybin is famous for its new therapy research. The research helps make mental healthcare accessible to patients using its cannabis-infused products. Overall, it focuses on providing healthcare for people with major depression.

In terms of market performance, CYBN has a market cap of over $265 million. It is one of the fastest-growing marijuana drugmakers in the market. The stock’s valuation is also up by over 6% between May 2023 and May 2024. However, its YTD growth is -12.5% at the time of writing. However, CYBN is a penny stock valued at $0.35 per share. .

GH Research PLC (GHRS)

Established in 2018, GH Research is a pharmaceutical company focused on developing medical drugs for the treatment of psychiatric and neurological disorders. The psychedelic drug manufacturer is notable for its mebufotenin (5-methoxy-N,N-dimethyltryptamine, 5-MeO-DMT) products. The clinically tested drugs are effective in treating bipolar disorder, treatment-resistant depression, and postpartum depression.

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GH threw its shares open in 2021. During this time, the company raised $160 million. Since then, it has worked hard to become a popular psychedelics brand.

But what should be more important to you is the asset’s market performance.  The asset’s market cap is around $602 million as of the time of writing. Moreover, the GHRS stock is one of the top-performing assets so far in 2024. Its price increased by over 34% between May 2023 and May 2024. It also has an impressive 2024 YTD growth of approximately 124% and is trading at around $12 per token as of early May 2024.

Due to its significant growth between 2023 and 2024, analysts have a rating consensus of GH Research as a “Strong Buy.”

Seelos Therapeutics Inc. (SEEL)

Established in 2016, Seelos Therapeutics is a psychedelics company that develops and distributes therapeutics for treating central nervous system (CNS) disorders, respiratory issues, and related health challenges. The clinical-stage biopharmaceutical company has various lead programs, including SLS-002 for treating acute suicidal behaviors in patients with depression and SLS-006 for treating people with rare diseases like Parkinson’s.

Seelos’ stocks began trading on NASDAQ after the company merged with Apricus Biosciences. The stock has a market cap of around $5 million, making it an upcoming stock. However, Seelos’ impressive run in the stock market makes it another stock for long-term investors to consider in 2024.

Seelos has struggled over the past year. The stock’s value decreased by over 98% between May 2023 and May 2024. Similarly, its YTD growth stands at -77.79% at the time of writing.

Analysts blame the recent price decline on the company’s shares dropping by 47% after its failed clinical trial. However, it’s trading at $0.31 per share, with a 5-day growth of 4.61% at press time. Can Seelos maintain the recent trends and keep attracting investors.

Upcoming Players in the Psychedelic Market

What smaller shares can investors consider in 2024?

Mind Medicine Inc. (MNMD)

MindMed is a US therapeutic company that explores the potential of psychedelic-based medicines called psychoplatogens in treating mental illness and addiction. The brain health company champions various drug research for treating pain and substance use disorders.

The company went public in 2020 and has had an impressive price history. The stock has a market cap of over $673 million at press time. You can also buy a unit at $9.36.

Numinus Wellness Inc. (NUMI.TO)

Numinus is another medicinal and wellness company that uses research and clinical trials to provide patients with psychiatric therapy. The company’s stock is listed on the Toronto Stock Exchange and has a market cap of $22.43 million. The company’s stock is worth $0.070 at the time of writing.

Incannex Healthcare Limited (IXHL)

Incannex is another company that uses marijuana medically to provide therapy to patients. The company listed its stock on the Australian Securities Exchange (ASX) in 2007, but it’s now trading on NASDAQ with a market cap of $42.87 million.

As of May 2024, Incannex stocks are trading at $2.65 per share, making it a good penny stock option for investors.

Understanding Psychedelics and Their Market Potential

Psychedelic drugs are medicines that offer their users therapy for various health issues.  Unlike marijuana, psychedelics include various chemical-derived and plant-derived substances that are consumed for recreational and medicinal uses.

Because of their impressive performance over time, venture capital firms and individual investors are backing psychedelic startups with funds. Even established pharmaceutical companies are merging with smaller ones or acquiring them to expand their growth. 

The increased interest in the psychedelics industry among retail and institutional investors has boosted the sector’s potential. According to BCC Research, the global psychedelic drugs market could be worth $5.6 billion by 2027, with a CAGR of 7.5% between 2022 and 2027.

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Many pharmaceutical companies providing psychedelic products are constantly seeking regulatory channels to get legal approval for their drugs. For instance, hallucinogens like psilocybin are showing potential in successfully treating conditions like depression and schizophrenia. Though states like California, Colorado, and Oregon have decriminalized psychedelics for medical and non-medical use, they require successful approvals and friendlier laws for positive growth.

Investing in Psychedelic Stocks: Benefits and Risks

Investing in the psychedelics sector has numerous benefits, but it’s crucial to pay attention to the downsides as well. We highlight the pros and cons of buying psychedelic stocks below.


  • Emerging Market: The psychedelics market is still in its early days and full of potential. Considering that the market is largely untapped, it may be a viable option for long-term investing and reward early investors over time.
  • High Growth Potential: Market analysts believe psychedelics have the potential to grow exponentially as more companies continue to research new medicines for treating neurological and psychological disorders. If these companies win big over the coming years, investors will also get massive returns.


  • Regulatory Uncertainty: Despite their impressive role in medical research and solutions, psychedelics remain illegal at the federal level. Unfavorable laws from the government can negatively impact the value and future of psychedelic stocks.
  • Clinical Trial Risk: Even if their drugs are passed as safe and effective during research, stocks from psychedelic companies may lose value or not attain commercial success in the case of unsuccessful clinical testing.

My Final Thoughts

More American states will legalize the use of marijuana as a medicine or recreational substance. As such, you can expect the psychedelics industry to explode over the coming years. The sector’s potential growth will make it a top option for investors looking for opportunities in psychedelic stocks.   We’ve reviewed the five best psychedelic stocks for healthcare-focused investors.

These stocks are from leading clinical and therapeutic companies, making it easy for you to find affordable investment options with optimistic predictions. However, it’s important to research properly and be on the lookout for the latest market trends and regulatory changes to make smart choices.

Why You Can Trust The Marijuana Index  

The information provided on Marijuana Index is solely for educational purposes. The selections presented here are the product of meticulous analysis by an experienced financial analyst. However, it’s crucial to remember that these choices may not universally fit every portfolio.  

Before making any investment decisions, we strongly encourage you to conduct thorough research. This ensures that any potential investment aligns with your unique financial goals and risk tolerance. 

As of the date this article was written, the author does not hold any positions in the stocks or ETFs mentioned. 

We do not provide personalized financial advice, advisory services, or brokerage recommendations. Nor do we advocate for the purchase or sale of specific stocks or securities. Please be aware that performance information might have changed since publication, and past performance should not be seen as an indicator of future results. 

Investing in cannabis stocks carries its own set of risks, reflective of the evolving legal landscapes and market volatility inherent in this industry. As an investor, it’s essential to be aware of these risks and consider them carefully in your decision-making process. 

To understand more about our commitment, we encourage you to learn more about us.  If you have more questions for our cannabis specialist editors, do not hesitate to contact us. You can also send us a tweet at @Marijuana_index. Stay updated with the latest cannabis news by subscribing to our Newsletter. 

Tobi Opeyemi - Financial Writer

Tobi Opeyemi - Financial Writer

Tobi, a journalist and crypto writer since 2017, is renowned for his educational content in the digital currency realm. His journey includes a significant tenure with Stockbossup, an investment platform committed to enlightening the black community on financial matters. Before this, Tobi honed his skills as a copywriter at Turboxbt, a platform specializing in cryptocurrency trading. Notably, Tobi's insights are featured on Investopedia, where he contributes articles on a range of topics. He is also celebrated as one of the top web3 creators on LinkedIn, known for content that consistently drives engagement and sparks conversations in the industry. With a background in Pharmacy, he brings a unique perspective to his writing, especially in the Cannabis sector.

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