Shares of Enveric BioSciences (NASDAQ:ENVB) added over 92% in the premarket trading session on Monday. AtaiBeckley Inc (NASDAQ:ATAI) surged by 28.1%, while Compass Pathways (NASDAQ:CMPS) and Definium Therapeutics (NASDAQ:DFTX) saw their shares ascend by 26.1% and 14.6%, respectively, after President Donald Trump issued an executive order on Saturday instructing health regulators to hasten the review process of psychedelic drugs.
Other companies in the sector also reaped benefits. GH Research (NASDAQ:GHRS) shares rose by 17.23%.
Trump Backs Ibogaine Research
Trump has also committed to accelerating psychedelic research with a $50 million investment in ibogaine research. Ibogaine is a compound derived from an African shrub and is classified as a Schedule I substance in the U.S., meaning it is considered to have no accepted medical use. This move was seen as a significant step towards addressing the mental health crisis, particularly in relation to post-traumatic stress disorder (PTSD).
Companies like Compass Pathways have applauded the administration’s move. Compass CEO Kabir Nath stated that the executive order “recognizes the profound urgency of the mental health crisis facing millions of Americans and the potential impact FDA-approved psychedelics could have.”
RBC analyst Brian Abrahams called the executive order “a substantial step towards diminishing regulatory risk” for psychedelic drugs, reported Reuters.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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