5 Top Psychedelic Stocks (2025) for Mental Health Investing

In the world of pharmaceuticals, a new substance is gaining a lot of traction, and that’s psychedelics. A class of hallucinogenic drugs, psychedelics showcase strong medicinal or therapeutic potential. 

Traditionally, psychedelics have been used recreationally to experience a “trip,” which refers to an altered state of consciousness. This ability to produce unique mental states is now being actively explored in clinical settings for therapeutic purposes to treat mental disorders like depression, anxiety, addiction, OCD, PTSD, and substance use disorder.

As for the drugs that fall under the category of psychedelics, they include psilocybin, mescaline, LSD, and DMT.

As we recently shared, two key mechanisms in our brain have been found to be responsible for the drug’s long-lasting antidepressant effects: frontal cortical PT neurons and the serotonin receptor 5-HT2A.

With psychiatric and mental illnesses on the rise globally, there is a massive demand for impactful solutions, and that has companies, psychiatrists, and researchers investigating, developing, or administering psychedelic compounds.

Against this backdrop, the psychedelic market is expected to grow to $6.8 billion by 2027. 

So, as the psychedelic therapeutics sector gains momentum, driven by promising clinical trials, regulatory advancements, and increasing investor interest, let’s take a look at some high-potential psychedelic stocks for you to explore and make part of your portfolio.

The American multinational pharmaceutical and biotechnology corporation is focused on various therapeutic areas, including cardiovascular and metabolism, immunology, infectious diseases, oncology, pulmonary hypertension, and neuroscience.

As part of its commitment to neuroscience and mental health treatments, Johnson & Johnson is advancing psychedelic medicine with its FDA-approved nasal spray called Spravato (esketamine), which is for treatment-resistant depression and acute suicidal ideation. 

Since its approval in 2019, the medicine has seen strong commercial success. Surpassing $1 bln in revenue in 2024, it highlights the commercial viability of psychedelic-based treatments. This is also major proof that psychedelics can be brought to market responsibly and at scale.

Besides pioneering legitimization and being a revenue driver, this can also help pave the regulatory path for other psychedelic treatments. Not to mention, Johnson & Johnson’s involvement adds credibility to the sector, especially for conservative investors and regulatory agencies.

Having over a century-long history in medicine, J&J has also established a robust infrastructure that allows it to scale production and achieve smoother distribution and faster adoption than any psychedelic startup if it decides to expand.

In fact, Johnson & Johnson is already all set to grow its neurological portfolio with the $14.6 billion acquisition of IntraCellular, which is deeply involved in developing non-hallucinogenic psychedelic compounds for mental health treatment. Its lead product Caplyta is an oral drug for treating MDD, bipolar disorder, and schizophrenia. ITI-1549 is another promising compound that is being developed for neuropsychiatric disorders. 

The pharmaceutical giant’s finances also paint a healthy picture. With a market cap of $358.32 billion, its stocks are trading at $148.69, up 2.81% year-to date (YTD). While this positive performance isn’t anything remarkable, this has been achieved against the backdrop of macro uncertainty created by the Trump administration’s tariffs that have the stock market tanking.

With that, it has an EPS (TTM) of 5.80, a P/E (TTM) of 25.65, and ROE (TTM) of 20.06%. Notably, the company pays an attractive dividend yield of 3.34%.

For 2024, Johnson & Johnson reported sales growth of 4.3% to $88.8 billion with operational growth (excluding COVID-19 Vaccine) of 5.9% and adjusted operational growth of 5.4%. During this period, earnings per share (EPS) came in at $5.79 while adjusted EPS was $9.98.

“2024 was a transformative year for Johnson & Johnson, marked by strong growth, an accelerating pipeline and industry-leading investments in innovation.”

– CEO Joaquin Duato

In 2025, the company forecasts operational sales growth to be between 2.5%-3.5% and adjusted operational EPS to be between $10.75 – $10.95, reflecting strong growth of 8.7% at the midpoint.

The research-based AbbVie Inc. is yet another pharma giant backing psychedelics. This biopharmaceutical company has a diverse portfolio of products including oncology, immunology, aesthetics, eye care, neuroscience, and others.

It has entered the psychedelic medicine space through a strategic partnership with psychedelic drug developer Gilgamesh Pharmaceuticals, which gives it access to advanced neuroplastogen technology and marks a huge step in mass adoption.

Under this partnership, which took place last summer, Gilgamesh receives an upfront payment of $65 million and a chance to get as much as $1.95 billion in aggregate option fees and milestones, as well as tiered royalties. With this move, the pharma giant has entered the psychedelics industry to develop next-gen therapies for mental health disorders.

The clinical-stage neuroscience biotech is currently developing new chemical entities (NCEs) for psychiatric diseases, which is being accelerated with the help of AI-powered discovery and a translational platform. This includes a safer Ibogaine analogue, a short-acting 5-HT2A agonist, non-hallucinogenic neuroplastogens, and rapid-acting NMDAR antagonist. Gilgamesh is making progress across all of these programs.

Besides this strategic collaboration that enables AbbVie to tap into next-gen psychedelics, the company also boasts a nice financial performance.

For starters, the $308.15 billion market cap AbbVie’s shares are currently trading at $174.20, down only 2% so far this year. It has an EPS (TTM) of 2.39 while the P/E (TTM) ratio is 72.84. Investing in ABBV shares also comes with the enticing opportunity to earn a dividend yield of 3.77%.

Now, in the last year, the company reported net revenue of $56.34 billion, a 4.6% increase on an operational basis and 3.7% on a reported basis. Segment-wise, this revenue covers $26.82 bln in immunology, $6.555 bln in oncology, $5.176 bln in aesthetics, and $8.999 bln in neuroscience.

According to CEO Robert A. Michael:

“2024 was a year of significant progress for AbbVie. Our growth platform delivered outstanding results, we advanced our pipeline with key regulatory approvals and promising data, and we strengthened our business through strategic transactions. We are entering 2025 with significant momentum and expect net revenues to exceed their previous peak.”

For this year, the company forecasts adjusted diluted EPS to be in the $12.12 and $12.32 range. It also reaffirmed the expectations for a high single-digit CAGR through 2029 and raised its long-term revenue outlook for Skyrizi, which is to treat Plaque Psoriasis, Psoriatic Arthritis, and Crohn’s disease and Rinvoq, which is to treat rheumatoid arthritis, psoriatic arthritis, atopic dermatitis, and ulcerative colitis.

This clinical-stage biopharmaceutical company is developing therapies based on its N-methyl-D-aspartate (NMDA) platform to treat disorders related to the central nervous system (CNS), more specifically PTSD, chronic pain, and suicidal bipolar depression.

Its focus on trauma-related disorders including military PTSD ties into public health priorities and can potentially unlock government support and fast-track approvals. This also means NRx’s therapies are well-positioned for deployment in VA, where psychedelic-based PTSD treatment is gaining momentum.

For now, NRx Pharmaceuticals has two lead compounds including a proprietary presentation of ketamine called NRX-100 and NRX-101, which combines two FDA-approved drugs D-cycloserine (DCS) and lurasidone. 

With these products, the company is targeting mental health disorders. NRX-101 has actually been designated by the FDA as a Breakthrough Therapy, which showcases its potential for large-scale market impact.

Notably, the company has an extensive patent portfolio, which includes 48 issued patents and 43 pending patents, providing it with a strong competitive advantage.

Then there’s strategic expansion through the Kadima Neuropsychiatry Institute acquisition. Earlier this year, NRx Pharmaceuticals’ wholly-owned subsidiary HOPE Therapeutics announced the acquisition of Kadima to serve as its flagship clinic for the planned international network of interventional psychiatry clinics to provide advanced treatments for debilitating diseases.

Last week, HOPE also announced signing a term sheet with a global medical device manufacturer for an investment of $2.5 million at a $50 million pre-money valuation. With this move, the company executes its “strategy to combine already-profitable, best-in-class interventional psychiatry clinics to serve the extraordinary unmet need of patients with severe depression and PTSD.”

Now, with a market cap of $30.28 million, NRXP shares are trading at  $1.79, down 18.64% YTD. Meanwhile, its EPS (TTM) is -2.38 and P/E (TTM) is -0.75.

For 2024 financial results, NRx Pharmaceuticals reported reducing its loss from operation by 33.5% to $18.5 million. This was mainly driven by a 53.6% decrease in R&D expense to $6.2 million, which was the result of a decrease in clinical trial and development expense as the phase 2b/3 study for NRX-101 concluded.

General and administrative expenses also declined to $13.5 million due to a reduction in insurance and employee costs.

As of December 31, 2024, the company had approximately $1.4 million in cash and cash equivalents. The management believes the cash resources to be sufficient to support its operations till this year-end.

Talking about “significant advances” made last year, CEO Jonathan Javitt, MD said, they have retired debt that was impeding the launch of HOPE, filed the New Drug Application for NRX-100 for the treatment of suicidal depression, moved NRX-101 toward its NDA for Accelerated Approval in bipolar depression, and is negotiating two potential strategic transactions to further accelerate progress.

This Ireland-based biopharmaceutical company is developing medicines in the neuroscience field with its commercial product portfolio covering treatments for bipolar I disorder, schizophrenia, opioid dependence, and alcohol dependence.

Among these, LYBALVI is an antipsychotic drug that is taken orally and only once daily and ARISTADA is a long-acting injectable drug. 

The company also has a pipeline of programs in development for neurological disorders. For instance, the ALKS 2680 program, which is an oral, selective OX2R agonist currently being developed for Narcolepsy Type 1 (NT1) and Type 2 (NT2) and idiopathic hypersomnia (IH). 

The data for ALKS 2680 phase 2 studies in NT1 and NT2 is expected in the second half of this year.

In April 2025, the company announced the initiation of a phase 2 clinical study to evaluate the safety and efficacy of ALKS 2680 for those with IH. Building on the “encouraging data” from phase 1b, this initiation Chief Medical Officer Craig Hopkinson said, “represents an important step forward for the ALKS 2680 development program as we seek to advance a potential new treatment option for people living with idiopathic hypersomnia.”

What makes Alkermes among the best psychedelic stocks to buy besides its focus on neurological disorders and mental health, proprietary drugs (Lybalvi, Aristada, and Vivitrol), and fast-advancing ALKS 2680 program is its strong financial results.

For the entire 2024, Alkermes reported a revenue of $1.56 billion, making it the “strongest year” to date in terms of financial and operational performance. 

The net sales of its proprietary products jumped 18% YoY. Its GAAP net income from operations was $372 million while diluted GAAP Earnings per Share was $2.20. EBITDA from continuing operations meanwhile came in at $452 million.

“2024 marked the completion of a multi-year effort to transition the business into a highly profitable, pure-play neuroscience company. We enter 2025 with a diversified portfolio of proprietary commercial products generating substantial profitability and an advancing development pipeline.”

– CEO Richard Pops

This has been the result of Alkermes selling its manufacturing facility in Ireland to Novo Nordisk for $92.5 million and spinning off its cancer business into an independent company called Mural Oncology.

Meanwhile, last year, the company spent $200 million in share repurchases and retired $290 million of its debt. Alkermes not only ended the year debt-free but also increased its cash, cash equivalents, and total investments slightly to $825 million.

As for its market performance, the $4.38 billion market cap company’s shares are currently trading at $26.59, down 7.55% YTD. Its EPS (TTM) is 2.21, the P/E (TTM) ratio is 12.03, and the ROE (TTM) is 27.90%.

The $250.3 million market cap Compass Pathways is a UK-based biotechnology company that is laser-focused on psychedelics, giving it focused expertise, flexibility, and first-mover advantage.

Its lead product is COMP360. The investigational COMP360 psilocybin treatment, which is administered along with psychological support, is the company’s proprietary synthesized psilocybin formulation that includes polymorphic crystalline psilocybin optimized for purity and stability. 

Compass is currently running the largest, randomized, controlled, double-blind psilocybin trial in the world with a Phase III program evaluating the COMP360 psilocybin therapy in treatment-resistant depression (TRD). Phase II trials in PTSD and anorexia nervosa are also ongoing.

The randomized controlled phase 2b study for TRD demonstrated that a single 25mg dose of COMP360 psilocybin, in combination with psychological support, resulted in a highly statistically significant reduction in depressive symptoms after three weeks and a durable response for up to 12 weeks.

The recruitment for Phase 3 was completed in the first half of this year and with that, Compass Pathways is “one-step closer to delivering COMP360 as a potential first-in-class psilocybin treatment for patients with treatment resistant depression,” said CEO Kabir Nath.

Top-line 6-week COMP005 data will be introduced in the second quarter of 2025 while 26-week data is expected in next year’s second half.

When it comes to the market performance of Compass Pathways, which was the first psychedelic medicine company to be listed on the NASDAQ in 2020, its shares are trading at $2.70, down 28.57% this year so far. Its EPS (TTM) is -2.30 and the P/E (TTM) ratio is -1.18.

Its financials for 2024 meanwhile shows a net loss of $155.1 million or $2.30 loss per share, up from $118.5 million in the previous year. R&D expenses also surged to $119 million (from $87.5 million in 2023), primarily due to the advancement of late-stage COMP360 phase 3 clinical trials, increased personnel expenses, and one-time strategic reorganization costs. G&A expenses jumped to $59.2 million.

Amidst this, the company laid off 30% of its employees in Q4 of 2024 and focused all of its efforts on the success of its lead program. Meanwhile, Steve Levine, M.D., was appointed as the Chief Patient Officer.

At the end of 2024, Compass Pathways had $165.1 million in cash and cash equivalents while debt was $30.2 million. It further reported raising an additional $140.4 million in the first quarter of 2025.

The biotech company expects its cash position to be sufficient to fund its operations at least through the second half of 2026. It also expects net cash usage this year to be in the range of $120 million to $145 million.

Conclusion

So, these companies are some of the most attractive options for you to bet on the psychedelic market. While they bring scale, credibility, pipeline diversity, ecosystem innovation, and even potential profits to the table, it’s important to note that the psychedelic space is too nascent and the regulatory landscape is still evolving which makes the related stocks inherently risky.

However, the continued progress these companies are making is helping destigmatize and institutionalize psychedelics, in turn, shaping the future of mental health care!

Click here to learn about how psilocybin breakthroughs could spark fresh investments.