Best Psychedelic Stocks to Buy in April 2025

Psychedelics have gone from a countercultural fad of the 1960s to mainstream medicine in the 2020s. Quite a few psychedelic pharmaceutical companies are developing drugs that follow the legal, regulatory pathway to approval. Hallucinogens, including psilocybin, are showing considerable promise in treating illnesses such as depression and schizophrenia.

Several of these drugmakers are publicly traded and are receiving increased attention from investors. We've seen a similar phenomenon with marijuana stocks over the past several years. Cannabis was once on the fringe but is now a significant and growing industry.

Whether you call them magic mushroom stocks, 'shroom stocks, or psilocybin stocks, psychedelic stocks are hot right now. Let's explore four of the best publicly traded psychedelic companies on the market today.

The top four

Best psychedelic stocks

Psychedelic stocks are simply healthcare stocks focused on the use of hallucinogens to treat diseases. Because the area is still fairly new, most of these companies have relatively low market capitalizations. However, many are growing rapidly. Here are four of the top psychedelic stocks:

1. Atai Life Sciences

1. Atai Life Sciences

With prominent backing from venture capitalists, including billionaire Peter Thiel, it's unsurprising that Atai Life Sciences ranks as one of the biggest biotech stocks focused on psychedelic drugs. Founded in 2018, the company went public in June 2021. Atai has also acquired or made significant strategic investments in several other psychedelic companies.

Atai's pipeline features six programs in clinical testing, including the company's strategic investments. The company has four candidates in phase 2 clinical studies: VLS-01 and BPL-003 for treatment-resistant depression, ELE-101 for major depressive disorder, and non-psychedelic drug RL-007 for treating schizophrenia.

Atai's Perception Neuroscience unit teamed up with Japanese drugmaker Otsuka (OTSK.Y -0.67%) to develop R-ketamine for treating depression. It's the first major collaboration between a psychedelic-focused biotech and a big pharma company. Atai is also one of the largest shareholders in Compass Pathways, the next psychedelic drugmaker we'll look at in this list.

2. Compass Pathways

2. Compass Pathways

Compass Pathways' roots go back to 2015. That's when George Goldsmith and Ekaterina Malievskaia founded a nonprofit organization, Compass Trust Limited, to support the research and development of psilocybin therapy for individuals with end-of-life anxiety.

Their efforts led to Compass Pathways becoming a for-profit company the following year. In September 2020, the company listed its shares on the Nasdaq stock exchange.

The drugmaker is currently conducting two phase 3 studies evaluating COMP360 in treatment-resistant depression. It expects to report results from one of these studies in the second quarter of 2025 and the other in the second half of 2026. COMP360 is currently Compass Pathways' only pipeline candidate.

There are other diseases for which COMP360 could be used. At the Institute of Psychiatry, Psychology & Neuroscience (IoPPN) at King's College London, Compass Pathways has initiated a phase 2 study of the experimental therapy in treating post-traumatic stress disorder (PTSD). Additional investigator-led studies are also underway for other indications, including anorexia nervosa.

3. Cybin

3. Cybin

Founded in 2019, Cybin went public in 2020 on Canada's NEO Exchange through a reverse takeover of Clarmin Explorations. Its shares began trading on the NYSE American in August 2021.

In January 2025, Cybin advanced its lead candidate CYB003 into phase 3 testing as an adjunctive treatment of major depressive disorder. The company is partnering with privately held Segal Trials to conduct clinical studies in Florida. It is also seeking other partners to run clinical trials of CYB003 in multiple nations.

Cybin is evaluating CYB004 in a phase 2 clinical trial targeting generalized anxiety disorder. The drugmaker expects to report topline results from this study in the first half of 2025.

4. Mind Medicine

4. Mind Medicine

Mind Medicine (also known as MindMed) was the first psychedelic drugmaker to conduct an initial public offering (IPO) on Canada's NEO Exchange in March 2020. The company was founded less than a year earlier, in May 2019.

MindMed is evaluating its experimental psychedelic drug MM120 in two phase 3 clinical studies targeting generalized anxiety disorder. The company plans to announce results from one of these studies in the first half of 2026 with results from the other study expected in the second half of 2026.

In addition, MindMed should advance MM120 into late-stage testing as a treatment for major depressive disorder in the first half of 2025. The company is also evaluating MM404 in a phase 1 study targeting autism spectrum disorder.

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Risks vs. rewards

Risks and rewards

None of the four psychedelic drugmakers has approved therapies on the market yet. There is a risk that pipeline candidates will be unsuccessful in clinical testing. Even if the drugs prove safe and effective in clinical studies and win regulatory approvals, it's still possible they won't achieve commercial success.

Also, none of the companies has reached profitability yet. They might need to raise additional capital through stock offerings that dilute the value of existing shares.

On the other hand, there are reasons to be optimistic about the potential for psychedelic substances in treating various neurological and psychological disorders. It's still early days, but any or all of these leading pharmaceutical stocks could become big winners over the next few years.

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