Psychedelic stocks rise after Trump order to accelerate research

President Trump signed an executive order directing agencies to prioritize review of certain psychedelic therapies, expand potential access, and support state research partnerships; several psychedelic drug stocks climbed sharply in premarket trading.

President Trump signed an executive order intended to speed research and expand access to certain psychedelic therapies, including treatments being studied for PTSD. The order asks federal agencies to prioritize review of some breakthrough-designated psychedelic therapies and to improve coordination among HHS, the FDA, and the VA. It also directs the Justice Department to act quickly on rescheduling any psychedelic product that completes Phase 3 trials and receives FDA approval. The order includes at least $50 million in federal funding for state partnerships and references expanded potential access under the Right to Try Act. Key facts: - The executive order directs the FDA to prioritize review of certain breakthrough-designated psychedelic therapies. - It expands potential access under the Right to Try Act and commits at least $50 million in federal funding for state partnerships. - The order encourages closer coordination among HHS, the FDA, the Department of Veterans Affairs, and private-sector researchers, and asks the Justice Department to move quickly on rescheduling approved products. - In premarket trading, several psychedelic drug stocks rose sharply, with reported moves including Compass Pathways up 24.5%, Atai Beckley up 28%, Definium Therapeutics up 13%, and GH Research up 17%. - Analysts at Oppenheimer, RBC, and Jefferies told clients the order could change regulatory timelines and investor attention; RBC said the path to commercialization could accelerate and Jefferies noted potential approvals in 2027–30. Summary: The order aims to speed regulatory review, increase interagency coordination, and provide federal support for state research partnerships, and markets reacted with notable premarket gains for several companies. Analysts reported the move could accelerate timelines and raise investor attention ahead of potential future approvals. Undetermined at this time.