Optimism Flows From Pot To Psychedelics: Atai Beckley, Supernus Stocks Rise After Analyst Flags Positive Tailwinds From Trump’s Marijuana Order

• The analyst noted that sponsors must continue producing study data to suggest psychedelics can safely produce profound efficacy in mental health.
• Jefferies added that it believes Atai Beckley's (ATAI) proprietary psychedelics have promise.
• The AdvisorShares Psychedelics ETF (PSIL), which invests in the emerging psychedelic drugs sector, traded 1.3% higher at the time of writing.

Jefferies analyst Andrew Tsai now sees positive tailwinds forming for non-recreational psychedelics after President Trump signed an executive order on Thursday directing his administration to reclassify marijuana.

The firm now sees non-recreational psychedelics eventually follow suit, as long as sponsors continue producing study data to suggest psychedelics can safely produce profound efficacy in mental health. This, the analyst believes, is arguably a function of time.

Jefferies added that it believes pharmaceutical company Atai Beckley's (ATAI) proprietary psychedelics have promise. AtaiBeckley’s pipeline includes investigational therapies for treatment-resistant depression and social anxiety disorder.

Shares of psychedelics-related stocks rallied on Friday. While ATAI stock traded 0.4% higher at the time of writing, Supernus (SUPN) and Cybin (CYBN) shares rose about 5%.

The AdvisorShares Psychedelics ETF (PSIL), which invests in the emerging psychedelic drugs sector, also traded 1.3% higher.

Trump Cannabis Order

President Donald Trump on Thursday signed an executive order to reschedule marijuana to make it less restrictive and available for “legitimate medical uses.” Trump is seeking to move marijuana from a schedule 1 drug to a schedule 3 drug, from the levels of heroin, down to the levels of tylenol.

Trump clarified that the order is not federal legalization and does not allow for recreational use nationwide but is instead aimed at improving medical marijuana and cannabidiol research. The Centers for Medicare & Medicaid Services (CMS) is also working on a plan to test making some Medicare patients eligible for therapies derived from cannabinoids or compounds derived from the Cannabis plant.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around PSIL fell from ‘neutral’ to ‘bearish’ territory over the past 24 hours, while sentiment around ATAI also took a dip to ‘extremely bearish’ levels.

Sentiment around SUPN stayed ‘neutral,’ while sentiment around CYBN stayed ‘extremely bullish’.

A Stocktwits user highlighted a positive study from 2022 on Psilocybin, a naturally occurring psychedelic compound, in treating depression symptoms.

As per the study published in the New England Journal of Medicine, participants reported a greater reduction in levels of depression three weeks after taking a 25 mg dose of psilocybin, compared to those who took the lowest 1 mg dose.

PSIL has gained 68% this year and by 76% over the past 12 months. 

Also See: Cassava Sciences Stock On Track For Worst Day In About 9 Months — What’s Driving Today’s Selloff?

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