Psychedelic drug stocks soared in premarket trading in New York after President Trump signed an executive order aimed at accelerating research and expanding access to therapies used for post-traumatic stress disorder (PTSD).
"The executive order I'm signing, we're actually signing the executive order today, is really a moment," Trump said at the signing event. "These treatments are currently in the advanced stages of clinical trials to ensure that they're both safe and effective for the American patients."
President Trump signed an executive order directing the FDA to expedite review of psychedelic drugs like ibogaine, which advocates say could treat PTSD and other mental health conditionshttps://t.co/vBk8EoguVFpic.twitter.com/AEW6V2merr
Trump's order, signed on Saturday, directs the FDA to prioritize review of certain breakthrough-designated psychedelic therapies, expands potential access under the Right to Try Act, commits at least $50 million in federal funding for state partnerships, and encourages closer coordination among HHS, the FDA, the VA, and private-sector researchers.
"In many cases, these experimental treatments have shown life-changing potential for those suffering from severe mental illness and depression, including our cherished veterans," Trump said, citing the veteran suicide rate.
The order also instructs the Justice Department to move quickly on rescheduling any psychedelic-based product that successfully completes Phase 3 trials and receives FDA approval.
Trump continued, "And the nice part is we're actually doing this early, but it has been going on. Research has been going on for quite some time. But, you know, usually with things like this, nothing ever happens, no matter how the research ends up, but we're changing that. This order will clear away unnecessary bureaucratic hurdles, improve data sharing among the FDA and the Department of Veterans Affairs, and facilitate fast rescheduling of any psychedelic drugs that become FDA-approved."
Accelerating Medical Treatments for Serious Mental Illness🇺🇸@JoeRogan: "For 56 years we've lived under those terrible conditions. We're free of that now. Thanks to all these people... and thanks to President Trump."https://t.co/j1tkGACSM7pic.twitter.com/aQmZl3z4PG
Oppenheimer analyst Jay Olson told clients that Trump's weekend executive order "represents a structural inflection point for the U.S. psychedelics sector by facilitating research, regulatory timelines, and patient access, which reinforces our positive outlook."
In response, psychedelic drug stocks in premarket trading, such asCompass Pathways jumped 24.5%, Atai Beckley gained 28%, Definium Therapeutics rose 13%, and GH Research added 17%.
Source: ZeroHedge News
