Top 4 "Psych" Stocks Went Crazy In September Going Up +18% - Here's Why

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Introduction

The following companies are the "Big 4" clinical-stage biopharmaceutical companies focused exclusively on developing psychedelic-based therapies for mental health conditions. The 4 have an average market capitalization of $866M and they have performed extremely well, UP 97% YTD.

The Pure-play Psychedelic Compound-Based Stocks Portfolio

Below is a description of the focus of each constituent, their market cap, their performance in September, in descending order, and YTD and the catalyst(s) for their stock price changes in September:

1. COMPASS Pathways pic (CMPS): UP 31.2% in September; UP 51.6% YTD
   • Focus: Its entire pipeline is focused on a proprietary psilocybin formulation and is currently in Phase 3 clinical trials for treatment-resistant depression, with additional studies underway for PTSD and anorexia nervosa.
   • Market Cap: $550M
   • Catalyst(s):
     • Investors are speculating on potential FDA breakthrough designation or favorable trial data for the company's psilocybin-based therapy COMP360 which is in Phase III trials for treatment-resistant depression.
2. atai Life Sciences N.V (ATAI): UP 15.8% in September; UP 297.8% YTD
   • Focus: It is generally considered a pure-play psychedelic stock, but unlike its peers, operates more like an incubator, investing in, and/or acquiring stakes in, promising psychedelic startups giving it broad exposure across the psychedelic landscape.
   • Market Cap: $1,130B
   • Catalyst(s):
     • ATAi received positive Phase 2a trial results for its intranasal psilocybin therapy for treatment-resistant depression validated BPL-003’s efficacy and safety, paving the way for Phase 3 trials in 2026, which could be transformative for ATAI’s valuation.
3. Mind Medicine (MindMed) Inc.(MNMD): UP 13.4% in September; UP 76.0% YTD 
   • Focus: Its pipeline is focused on a proprietary formulation of LSD, currently in Phase 3 trials for generalized anxiety disorder and major depressive disorder, and an MDMA-like compound in Phase 1 trials, targeting core symptoms of autism spectrum disorder. 
   • Market Cap: $897M
   • Catalyst(s):
     • Renewed optimism in psychedelic medicine following positive trial data from peers like ATAI and CMPS helped lift sentiment across the space, including MindMed.
4. GH Research PLC (GHRS): UP 5.9% in September; UP 104.3% YTD 
   • Focus: Its pipeline is focused on 5-MeO-DMT (also known as mebufotenin).targeting treatment-resistant depression, bipolar II disorder, and postpartum depression.
   • Market Cap: $887M
   • Catalyst(s):
     • The Zacks Consensus Estimate for FY EPS was revised upward, reflecting growing confidence in GHRS’s financial trajectory and earning a Zacks Rank #1 (Strong Buy), placing it in the top 5% of ranked stocks.

Summary

The "BIG 4" were UP 18.3%, on average, in September and are now UP 97.3% YTD.

A Comparison Chart Of The Performance Of The "Big 4" Constituents YTD

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Source: StockCharts.com

A Chart Of The Performance Of The Portfolio YTD

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The above portfolio chart has been generated using the tools provided by PortfoliosLab.com and easy step-by-step instructions are available here to help you create a chart of your own portfolio or that of a client. It's easy, fast and free.