Not very long ago, the investors were skeptical about investing in the psychedelic companies - and whoever did, had to go through thorough consideration before investing. But today, it is a different scene as the cannabis industry is one of the fastest-growing industries offering numerous investment opportunities with positive outcomes. 

The psychedelic industry and the companies at the forefront of the industry are still in their early stages. But this doesn’t stop major investors like PayPal billionaire Peter from investing in biopharmaceutical companies like ATAI Life Sciences. 

While psychedelic company stocks' popularity makes investors consider it an investment, there are three major reasons why psychedelic company stocks are getting popular.

Because The World Needs Effective Mental Health Treatments

Mental health difficulties are a concern in every country on the globe, and they are getting worse. And the situation is deteriorating with time, with the COVID-19 having exacerbated the problem dramatically. Traditional mental health therapies were never 100 percent effective, and they were more of a last resort, employed only because there were no alternative options available at the time. Some of the older approaches have also been associated with negative consequences such as addiction.

The development of novel and successful medical treatments is a top priority for many pharmaceutical corporations. Psilocybin, for example, has been shown to be more effective than ketamine and to be associated with decreased rates of relapse after therapy. In just three years, it is predicted that the market for alternative antidepressants would surpass the regular antidepressant market and reach $15.98 billion by 2023.

Because The Psychedelics Are Starting To Get Legalized

The progress of psychedelics in the overall health treatment could have been faster had it not been for the policies regarding psychedelics. However, the legislation and regulation are changing now, leading to increased global legalization of substances like psychedelics. 

The COMPASS Pathways have experienced over 70% increase in their market capital on their first trading day after the FDA approved their psilocybin-based depression treatment. The FDA also applauds the treatment as a breakthrough therapy. In Canada, psilocybin-based treatments are already permitted for cancer palliative care. 

Because The Mainstream Public Is All For Accepting Psychedelics

It wouldn't matter how effective the substances are or who approves them if the general population does not accept them and does not have a positive attitude regarding psychedelic health care. The good thing about psychedelics is that they are well-accepted by the general populace.

According to a YouGov survey, 59 percent of the population cannot rely on talk therapy or anti-depressants to treat their depression and would be willing to try psilocybin-based therapy instead. The cannabis market will continue to thrive as long as psychedelics continue to make headlines in the mainstream media.

Conclusion

All of the factors listed above are valid grounds for investors to consider their stocks without hesitation before making a purchase. Psychedelic stocks, on the other hand, can still be dangerous investments, particularly those that are still awaiting FDA approval.