Psychedelic Stocks Could Explode Higher
Submitted by QTR's Fringe Finance
One of my “26 Stocks to Watch for 2026”, Definium Therapeutics (DFTX), is up more than 60% this morning to roughly $40 per share and is now up nearly 200% year-to-date after reporting positive Phase 3 data for its LSD-based depression treatment. (My full list of 26 stocks can be found here).
According to Reuters, a single dose of Definium’s experimental drug DT120 significantly reduced symptoms of major depressive disorder in a late-stage trial, meeting its primary endpoint and showing meaningful improvement as early as one week after treatment.
For those of you who have been reading me for the last couple of years, this shouldn’t come as much of a surprise. I’ve been pounding the table on psychedelic stocks for years and this year my thesis (other than efficacy) — that RFK’s Department of Health and Human Services would expedite their approval — came to fruition.
I was writing about these stocks 18 months ago, first in January 2025, calling the psychedelic names “stocks to watch” for the year. Then, in July 2025, urging patience in these positions. Then again naming psychedelic names to my “stocks to watch” for 2026 and even going so far as to name the sector my “best idea” for 2026: My "Best Idea" Sector For 2026
This is what I wrote coming into this year, months before the Trump administration took action to expedite these drugs:
As I said last year, these are early-stage, cash-burning companies tied to a paradigm shift in mental health, not quarterly earnings beats. I remain very excited about them heading into 2026 because the core thesis hasn’t broken: these compounds are not incremental improvements on SSRIs or traditional therapy, they are fundamentally different tools that can produce outsized, durable outcomes in a fraction of the time.
What strengthens the setup into 2026 is regulation and cultural momentum, not price action. Policy debates are intensifying, states are moving ahead of federal agencies, and figures like RFK Jr. are pushing psychedelic therapy into the political mainstream—particularly around veterans, PTSD, addiction, and public health.
States such as Oregon, Colorado, New Mexico, and Texas are already funding research and building regulatory frameworks that don’t depend on FDA approval alone, echoing the early path of cannabis. If even one major catalyst hits—FDA reclassification, VA adoption, accelerated trials, or a meaningful state-level expansion—the market can reprice this space rapidly.
These companies don’t need everything to go right; they need legitimacy. And if that legitimacy arrives, today’s ignored and discounted psychedelic names could quickly become buyout targets or strategic assets. The risk, in my view, isn’t that psychedelics don’t work—the lived experiences and growing data suggest they do. The real risk is missing the window before the rest of the market is forced to catch up.
Back in January, I even wrote that LSD-derived compounds were advancing into late-stage development and that a single positive regulatory or clinical catalyst could send individual names soaring. Today’s news is a perfect example.
In April, after the administration’s executive order supporting psychedelic research, I reiterated my bullish stance and argued that we were moving from the phase where these therapies were ignored into the phase where institutions would be forced to engage with them seriously. That transition appears to be underway.
I singled out DFTX and CMPS in my 26 Stocks To Watch For 2026 to start the year. But also, as a reminder, there’s one little known preferred way I like to have exposure to the space...(READ THIS FULL ARTICLE HERE).