AbbVie Stock got a lot of attention a couple weeks ago after the company made a major announcement.
The American pharmaceutical giant recently announced an investment in Gilgamesh Pharmaceuticals. That deal put $65 million in Gilgamesh’s pockets. It also gives the company the opportunity to make up to $1.95 billion in aggregate option fees and milestones, as well as tiered royalties.
That’s a pretty big win for a company that most folks never even heard of. But don’t let its lack of attention from the investment community confuse you. Gilgamesh is a major player in the psychedelics medicine space. Its management team is a “who’s who” of Big Pharma with connections to Pfizer (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), Merck (NYSE: MRK), Biogen (NASDAQ: BIIB) and the NIH, just to name a few.
Now when most folks talk about psychedelics, they often think about these drugs as recreational. Not medical.
To be sure, as an investor, it’s unlikely I’d ever invest in a recreational psychedelics company. But a psychedelics company developing a new generation of mental health and neurodegenerative treatments that are actually effective? Well, that’s a completely different kettle of fish. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
AbbVie Stock to play the Psychedelics Market?
While I’ve been following the psychedelics space for close to 5 years now, over the past year or so, the big investment banks and venture funds have also begun to take notice.
Earlier this year, J.P. Morgan announced it was in dialogue with a number of companies developing new psychedelics-based treatments for various mental health conditions.
And Morgan Stanley, another behemoth investment bank, recently initiated coverage on a psychedelics company called Compass Pathways (NASDAQ: CMPS). If you’re unfamiliar, Compass Pathways is developing treatments for post-traumatic stress disorder, anorexia nervosa, and treatment-resistant depression.
Analysts at Morgan Stanley have estimated that just one of Compass Pathways’ treatments could achieve more than $1 billion in peak risk-adjusted sales in the U.S. for treatment-resistant depression. That’s billion. With a “B.”
The psychedelics industry has also enjoyed a few big wins this year outside of the world of investment banking.
MindMed (NASDAQ: MNMD), a company I told you about earlier this year, announced it was granted breakthrough therapy designation for its program to treat generalized anxiety disorder. That designation will allow the company to fast-track its clinical trials.
I told Energy & Capital readers to buy it back in February. About a month later, following that announcement, the stock more than doubled in value.
And in policy news, Utah governor Spencer Cox allowed a bill to become law that authorizes a pilot program for hospitals to administer certain psychedelic medicines as an alternative treatment option.
A Missouri Senate committee also approved a bill to legalize the medical use of psilocybin to military veterans. And the Missouri House of Representatives approved a budget bill with $10 million to research psilocybin for opioid addiction.
And in Europe, the EU funded a $7 million study into psychedelic-assisted therapy.
Clinics in the Netherlands, Czechia, Denmark, and Portugal will treat over 100 patients as part of the research, focusing on one of the following conditions:
- Chronic obstructive pulmonary disease (COPD)
- Multiple sclerosis (MS)
- Amyotrophic lateral sclerosis (ALS)
- Atypical Parkinson’s disease (APD)
Also worth noting: Alberta Blue Cross announced that claims for psychedelics therapy for mental health treatments will now be eligible for reimbursement. Alberta, by the way, was the first province to regulate psychedelic-assisted therapy for mental health treatments back in 2022.
Make no mistake: big things are happening in the psychedelics industry. And with its latest deal with Gilgamesh, AbbVie Stock could definitely benefit. I would even argue that AbbVie is a bit undervalued at its current valuation, too. Of course, AbbVie isn’t a pure play psychedelics stock.
Now I already told you about one pure play psychedelics stock that made us a boatload of cash in a very short amount of time. But there are more. In fact, I’ve identified 3 psychedelics companies that are trading at significant discounts right now. And all three are expected to increase in value by more than 112% within the next six months.
And this isn’t hyperbole. This is very real, and all based on objective due diligence that we’ve been conducting for years. In fact, you can look at it for yourself right here.
The fact is, institutional money is now starting to move into the space. And we expect these big investments to continue well into 2027. Not just from the major investment banks, either, but also from venture funds and deep-pocketed investors. I’m talking about guys like Elon Musk, Bill Gates and Google co-founder Sergey Brin. Billionaire entrepreneurs who are not only backing some of these psychedelic-based medications, but who have also taken them themselves. And let’s be honest: these guys are NOT known for losing money.
Now I’m not saying that investing in AbbVie stock or any of the pure play psychedelics stocks out there will make you as rich as Uncle Elon. But there’s no doubt that there’s a lot of money to be made in the psychedelics space. So you might as well get some of it for yourself, too. And you can start with any one of these three psychedelics stocks. To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Check us out on YouTube!Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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