Psychedelic Stocks May Gain from Marijuana Rescheduling, According to Jefferies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy ATAI?
Source: SeekingAlpha
Psychedelics and Executive Order: Companies like Atai Beckley, Cybin, and Mind Medicine may benefit from President Trump's Executive Order to reclassify marijuana, potentially paving the way for similar changes for psychedelics if clinical data supports their efficacy in mental health treatment.
Current Classification: Psychedelic drugs are currently classified as Schedule I substances, indicating no recognized medical use and a high risk of abuse, similar to the current status of marijuana before the proposed reclassification to Schedule III.
Analyst Insights: Jefferies analyst Andrew Tsai highlighted that the stigma surrounding psychedelics has been politically driven, despite clinical evidence suggesting their potential in treating hard-to-treat mental health disorders.
Company Developments: Atai Beckley is advancing its pipeline for treatment-resistant depression, while Mind Medicine is preparing for significant Phase III data readouts in 2026, supported by a recent $225 million public offering.
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Analyst Views on ATAI
Wall Street analysts forecast ATAI stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 3.690
Low
10.00
Averages
13.00
High
16.00
Current: 3.690
Low
10.00
Averages
13.00
High
16.00
About ATAI
AtaiBeckley Inc. is a clinical-stage biotechnology company focused on transforming patient outcomes by developing rapid-acting and convenient mental health treatments. The Company's pipeline of novel therapies includes BPL-003 (mebufotenin benzoate nasal spray) for treatment-resistant depression (TRD), VLS-01 (DMT buccal film) for TRD and EMP-01 (oral R-MDMA) for social anxiety disorder, which are in Phase 2 clinical development. It is also advancing a drug discovery program to identify novel, non-hallucinogenic 5-HT2AR agonists for opioid use disorder and TRD. BPL-003 is being developed to produce rapid treatment effects from a single dose, within a two-hour interventional psychiatry treatment paradigm, and with a favorable safety profile. VLS-01 is a proprietary oral transmucosal film formulation of N,N-Dimethyltryptamine (DMT) being developed as a potential treatment for people living with treatment-resistant depression (TRD). EMP-01 is an oral formulation of R-MDMA.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Helus Pharma Advances Mental Health Drug Development
- Clinical Trial Progress: Helus Pharma's SPL026 showed significant efficacy in a randomized Phase 2 trial for major depressive disorder, with a mean MADRS score reduction of 7.35 in the 21.5 mg dose group among 34 participants, indicating its potential in the mental health sector.
- New Drug Development: The company is advancing HLP003 through Phase 3 trials, which has received FDA Breakthrough Therapy Designation, with preliminary data showing a 100% response rate and 71% remission rate at 12 months, highlighting its importance in treating major depressive disorder.
- Financial Support: As of December 31, 2025, Helus Pharma reported $195.1 million in cash reserves, providing strong financial backing for the continued advancement of its multi-asset clinical pipeline, ensuring sustainability for future R&D efforts.
- Market Outlook: As regulatory approvals for mental health drugs draw closer, Helus Pharma and its peers are reshaping the market perception of psychedelic drugs, which is expected to create significant commercial opportunities and enhance market share for the company.
See More
Helus Pharma Advances Psychedelic Drug Clinical Trials
- Clinical Trial Progress: Helus Pharma's SPL026 achieved a mean MADRS difference of -7.35 (p=0.023) in a randomized Phase 2 trial involving 34 participants with major depressive disorder, indicating significant efficacy and potential in the mental health sector.
- Drug Development Strategy: Helus Pharma's HLP003 has received FDA Breakthrough Therapy Designation and is advancing through two pivotal Phase 3 studies, with topline data expected in Q4 2026, showcasing the company's ongoing innovation and competitiveness in depression treatment.
- Financial Support: As of December 31, 2025, Helus Pharma reported $195.1 million in cash, ensuring continued advancement across its multi-asset clinical pipeline, demonstrating a strong financial foundation for R&D efforts.
- Industry Recognition: A consensus statement from the U.S. National Network of Depression Centers indicates that academia is preparing to integrate psychedelics into routine clinical practice, reflecting the growing acceptance of Helus Pharma and its peers in the mental health treatment landscape.
See More
Significant Milestones in Biotech Sector This Week
- FDA Drug Approvals: Armata Pharmaceuticals' AP-SA02 received FDA's QIDP designation, granting five years of market exclusivity and paving the way for a Phase 3 trial in 2026, which is expected to significantly enhance the company's competitive edge in the antibiotic market.
- Weight Loss Innovation: Allurion Technologies' gastric balloon system gained FDA approval, offering a non-surgical weight loss option for patients with a BMI of 30-40, which is anticipated to expand the company's market share in the obesity sector.
- Acquisition Deal: Gilead Sciences is acquiring Arcellx for $115 per share, totaling $7.8 billion, a move that will strengthen Gilead's position in cell therapy and enhance its collaboration with Kite Pharma.
- Clinical Trial Developments: Novo Nordisk's CagriSema missed key goals in its trial against Zepbound, although it demonstrated a favorable safety profile, which may influence future market strategies.
See More
AtaiBeckley Reports Positive EMP-01 Trial Results for Social Anxiety Disorder
- Clinical Trial Results: AtaiBeckley Inc.'s EMP-01 showed that 49% of patients with Social Anxiety Disorder reported being 'very much improved' or 'much improved' in a Phase 2a trial, compared to only 15% in the placebo group, indicating significant clinical improvement and potential for the drug in treatment.
- Safety Assessment: The trial involved 71 adults and met its primary safety objective with no serious adverse events reported, demonstrating a favorable safety profile for EMP-01, which could provide new hope for treating Social Anxiety Disorder.
- Market Performance Analysis: Although AtaiBeckley's stock fell 10.60% to $3.88 at publication, it has increased by 43% over the past 12 months, indicating a strong long-term trend, prompting investors to monitor key support and resistance levels in the short term.
- Technical Indicator Interpretation: The current Relative Strength Index (RSI) is at 50, indicating a neutral state, while the MACD is at 0.10, below its signal line at 0.15, suggesting bearish pressure on the stock, which investors should watch for potential directional changes.
See More
ATAI Reports Positive Results for EMP 01 in Social Anxiety Disorder Study
- Clinical Trial Results: AtaiBeckley Inc. successfully met the primary safety objective in its phase 2a study of EMP 01 for Social Anxiety Disorder, generating encouraging secondary and exploratory efficacy signals, indicating the drug's potential.
- Market Demand Context: With an estimated 400-800 million people globally affected by Social Anxiety Disorder and no new therapies approved in over two decades, there is a pressing need for new treatment options, positioning ATAI's research to fill this gap.
- FDA Approval History: The most recent FDA-approved treatments for Social Anxiety Disorder include Effexor (2003), Zoloft (2002), and Paxil (1999), highlighting a stagnation in innovation within the field, which may draw industry attention to ATAI's findings.
- Market Reaction: ATAI's stock closed at $4.34 on Wednesday, down 0.69%, but rose over 5% in premarket trading on Thursday to $4.57, reflecting positive market sentiment towards its clinical results.
See More
AtaiBeckley Appoints New CFO Michael Faerm
- Executive Appointment: AtaiBeckley has appointed Michael Faerm as Chief Financial Officer, effective March 9, 2026, bringing over 25 years of experience in life sciences, equity research, and investment banking, which is expected to enhance the company's financial management capabilities.
- Leadership Transition: Current CFO Anne Johnson will transition to Chief Accounting Officer upon Faerm's appointment, continuing to oversee accounting and financial operations to ensure operational continuity and consistency during the executive transition, thereby mitigating management risks.
- Market Opportunities and Risks: AtaiBeckley faces significant market opportunities in the psychedelics sector, but execution risks remain, with analysts emphasizing the need for the company to maintain strategic vigilance to capitalize on industry growth potential.
- Industry Outlook: The potential rescheduling of marijuana could benefit psychedelics stocks, with Jefferies analysts expressing optimism that this may provide new growth momentum for companies like AtaiBeckley.
See More
Helus Pharma Advances Mental Health Drug Development
- Clinical Trial Progress: Helus Pharma's SPL026 showed significant efficacy in a randomized Phase 2 trial for major depressive disorder, with a mean MADRS score reduction of 7.35 in the 21.5 mg dose group among 34 participants, indicating its potential in the mental health sector.
- New Drug Development: The company is advancing HLP003 through Phase 3 trials, which has received FDA Breakthrough Therapy Designation, with preliminary data showing a 100% response rate and 71% remission rate at 12 months, highlighting its importance in treating major depressive disorder.
- Financial Support: As of December 31, 2025, Helus Pharma reported $195.1 million in cash reserves, providing strong financial backing for the continued advancement of its multi-asset clinical pipeline, ensuring sustainability for future R&D efforts.
- Market Outlook: As regulatory approvals for mental health drugs draw closer, Helus Pharma and its peers are reshaping the market perception of psychedelic drugs, which is expected to create significant commercial opportunities and enhance market share for the company.
See More
Helus Pharma Advances Psychedelic Drug Clinical Trials
- Clinical Trial Progress: Helus Pharma's SPL026 achieved a mean MADRS difference of -7.35 (p=0.023) in a randomized Phase 2 trial involving 34 participants with major depressive disorder, indicating significant efficacy and potential in the mental health sector.
- Drug Development Strategy: Helus Pharma's HLP003 has received FDA Breakthrough Therapy Designation and is advancing through two pivotal Phase 3 studies, with topline data expected in Q4 2026, showcasing the company's ongoing innovation and competitiveness in depression treatment.
- Financial Support: As of December 31, 2025, Helus Pharma reported $195.1 million in cash, ensuring continued advancement across its multi-asset clinical pipeline, demonstrating a strong financial foundation for R&D efforts.
- Industry Recognition: A consensus statement from the U.S. National Network of Depression Centers indicates that academia is preparing to integrate psychedelics into routine clinical practice, reflecting the growing acceptance of Helus Pharma and its peers in the mental health treatment landscape.
See More
Significant Milestones in Biotech Sector This Week
- FDA Drug Approvals: Armata Pharmaceuticals' AP-SA02 received FDA's QIDP designation, granting five years of market exclusivity and paving the way for a Phase 3 trial in 2026, which is expected to significantly enhance the company's competitive edge in the antibiotic market.
- Weight Loss Innovation: Allurion Technologies' gastric balloon system gained FDA approval, offering a non-surgical weight loss option for patients with a BMI of 30-40, which is anticipated to expand the company's market share in the obesity sector.
- Acquisition Deal: Gilead Sciences is acquiring Arcellx for $115 per share, totaling $7.8 billion, a move that will strengthen Gilead's position in cell therapy and enhance its collaboration with Kite Pharma.
- Clinical Trial Developments: Novo Nordisk's CagriSema missed key goals in its trial against Zepbound, although it demonstrated a favorable safety profile, which may influence future market strategies.
See More
AtaiBeckley Reports Positive EMP-01 Trial Results for Social Anxiety Disorder
- Clinical Trial Results: AtaiBeckley Inc.'s EMP-01 showed that 49% of patients with Social Anxiety Disorder reported being 'very much improved' or 'much improved' in a Phase 2a trial, compared to only 15% in the placebo group, indicating significant clinical improvement and potential for the drug in treatment.
- Safety Assessment: The trial involved 71 adults and met its primary safety objective with no serious adverse events reported, demonstrating a favorable safety profile for EMP-01, which could provide new hope for treating Social Anxiety Disorder.
- Market Performance Analysis: Although AtaiBeckley's stock fell 10.60% to $3.88 at publication, it has increased by 43% over the past 12 months, indicating a strong long-term trend, prompting investors to monitor key support and resistance levels in the short term.
- Technical Indicator Interpretation: The current Relative Strength Index (RSI) is at 50, indicating a neutral state, while the MACD is at 0.10, below its signal line at 0.15, suggesting bearish pressure on the stock, which investors should watch for potential directional changes.
See More
ATAI Reports Positive Results for EMP 01 in Social Anxiety Disorder Study
- Clinical Trial Results: AtaiBeckley Inc. successfully met the primary safety objective in its phase 2a study of EMP 01 for Social Anxiety Disorder, generating encouraging secondary and exploratory efficacy signals, indicating the drug's potential.
- Market Demand Context: With an estimated 400-800 million people globally affected by Social Anxiety Disorder and no new therapies approved in over two decades, there is a pressing need for new treatment options, positioning ATAI's research to fill this gap.
- FDA Approval History: The most recent FDA-approved treatments for Social Anxiety Disorder include Effexor (2003), Zoloft (2002), and Paxil (1999), highlighting a stagnation in innovation within the field, which may draw industry attention to ATAI's findings.
- Market Reaction: ATAI's stock closed at $4.34 on Wednesday, down 0.69%, but rose over 5% in premarket trading on Thursday to $4.57, reflecting positive market sentiment towards its clinical results.
See More
AtaiBeckley Appoints New CFO Michael Faerm
- Executive Appointment: AtaiBeckley has appointed Michael Faerm as Chief Financial Officer, effective March 9, 2026, bringing over 25 years of experience in life sciences, equity research, and investment banking, which is expected to enhance the company's financial management capabilities.
- Leadership Transition: Current CFO Anne Johnson will transition to Chief Accounting Officer upon Faerm's appointment, continuing to oversee accounting and financial operations to ensure operational continuity and consistency during the executive transition, thereby mitigating management risks.
- Market Opportunities and Risks: AtaiBeckley faces significant market opportunities in the psychedelics sector, but execution risks remain, with analysts emphasizing the need for the company to maintain strategic vigilance to capitalize on industry growth potential.
- Industry Outlook: The potential rescheduling of marijuana could benefit psychedelics stocks, with Jefferies analysts expressing optimism that this may provide new growth momentum for companies like AtaiBeckley.
See More
