It was a wild 2021. We had NASDAQ uplists and multi-billion dollar IPOs. And despite some pretty extreme market fluctuations, the psychedelic medicine industry has managed to cement itself as a legitimate biotech sector worthy of investor confidence.
While 2022 hasn’t yet given us the market turnaround we had hoped for, the forthcoming 12 months will be filled with clinical trial news and significant milestones, and the current price pullback may present interesting opportunities for investors.
So here’s a list of shroom stocks to look out for in 2022 (a partial list, stay tuned for more)
atai Life Sciences
Starting out with the industry’s biggest player may not seem like a crazy insider tip, but the current market situation makes them a company to watch. Several of their preclinical compounds will finally be making the move into actual trials (we often forget that despite having a huge pipeline they’re not yet that advanced clinically). Case in point, see atai’s announcement this week on FDA Investigational New Drug (IND) Clearance for PCN-101 R-ketamine Program.
So 2022 could be the year atai begins to fulfill its potential. With the stock down over 60% in the last 6 months, this year could present an interesting growth opportunity.
Mydecine
With advanced trials and new collaborations with the prestigious Johns Hopkins and Dr. Matthew Johnson, Mydecine is setting itself to finally realize its potential. The company has an upcoming Phase 2A clinical trial using psilocybin for PTSD in veterans, EMS, and front-line workers. Mydecine has also announced the launching of a seamless Phase 2/3 clinical trial in early 2022, a partnership with Johns Hopkins University and led by one of the world’s most published scientists on the human effects of psychedelics. The planned study will evaluate Mydecine’s MYCO-001 as part of a smoking cessation treatment program in nicotine-dependent individuals.
With a recent financing deal giving them a bit of cash and a current market cap of only $52 million CAD, MYCO could be one of 2022’s most interesting stocks.
For more information see Company Update: A Look at Mydecine Innovations Group
PharmaTher
PharmaTher is one of the psychedelic medicine industry’s best-kept secrets. With several Phase 2 trials in the works, a growing pipeline of both drug development and delivery methods, and a solid working relationship with the FDA (they’ve already received Orphan Drug Designation from the FDA for one of their programs) — PharmaTher seems well-positioned to corner the ketamine segment of the market.
Before the recent market downturn, the stock spent some time in 5-bagger territory (hitting over $1 this summer) and has received some very bullish price targets from analysts (H.C. Wainwright gave them a $5 target). The stock has settled back in the $0.30-$0.35 range, with a $23 million market cap, making them a potentially very attractive stock to watch this year. Because despite the share price drop, their developments haven’t stopped.
PharmaTher just took another important step in its clinical trial process. The FDA has accepted its investigational new drug (“IND”) application to proceed with a Phase 2 clinical trial using ketamine of ALS (Lou Gehrig’s disease).
For more information on PhamaTher and its developments, see PharmaTher Provides Update on Pipeline and Milestones for 2022 and A Look at PharmaTher and its Recent Bull Run
Cybin
It was a very good 2021 for Cybin.
The company made the big jump to the NYSE American exchange, becoming the first psychedelic company to debut on the NYSE. In July, Cybin announced an exclusive research and development agreement with one of the largest in-person mental health providers in the U.S., giving it a foothold into the US clinic market. And there was a consistent streak of major analysts giving Cybin extremely positive ratings and price targets.
The company finished the year with more positive news, announcing at a Wonderland press conference, the impressive pre-clinical results of its CYB-003 molecule, including:
• faster onset time
• shorter trip duration
• less variability in plasma levels
• better brain penetration
These extremely positive results move the drug to the front of the company’s development pipeline. Adding another, potentially stronger, candidate alongside CYB-001. And in December, the company also received FDA Approval for new Phase 2 trial.
In terms of advancements, you’d be hard-pressed to find a company with a better 2021. Yet no one seemed immune to the market depression and Cybin was hit as hard as anyone, with stock prices dropping over 70% since July. With a developmental pipeline still as strong as ever, Cybin seems one of the best bets to reach its former price levels in 2022.