What are psychedelic-based therapies and why are they important for mental health?

Psychedelic-based therapies use compounds like psilocybin (from mushrooms) or MDMA to treat mental health conditions. Unlike traditional medications, these therapies often work by creating new neural connections and providing breakthrough experiences that help patients process trauma or break negative thought patterns. Companies in this space are conducting clinical trials showing promising results for treatment-resistant depression, PTSD, and anxiety disorders that haven't responded to conventional treatments. As regulatory attitudes shift, these previously restricted compounds are being reconsidered for their therapeutic potential.

What are non-invasive brain stimulation treatments?

Non-invasive brain stimulation treatments use technologies like magnetic fields or electrical currents to activate or inhibit specific brain regions without surgery. Companies like STIM and BWAY offer FDA-cleared devices that use transcranial magnetic stimulation (TMS) to treat conditions like depression and OCD by targeting neural circuits involved in mood regulation. These alternatives are particularly valuable for patients who don't respond to or can't tolerate medication, offering minimal side effects and no systemic medication exposure. The treatments typically involve regular outpatient sessions where magnetic pulses are delivered to precise brain regions.

How is telehealth changing mental healthcare access?

Telehealth platforms like HIMS, TDOC, and AMWL are revolutionizing mental healthcare by removing traditional barriers to treatment. These services allow patients to connect with therapists and psychiatrists remotely through video calls, messaging, and digital tools. This virtual approach eliminates geographic limitations, reduces wait times, and often costs less than in-person care. For mental health specifically, telehealth has proven particularly effective since many treatments don't require physical examinations. The convenience also improves treatment consistency, as patients can more easily attend regular sessions and maintain medication schedules, leading to better outcomes.

What does "Market Cap" mean when evaluating these stocks?

Market capitalization (Market Cap) represents the total value of all a company's outstanding shares, calculated by multiplying the share price by the number of shares. In the mental health sector, market cap helps distinguish between established pharmaceutical giants like JNJ and ABBV (with market caps often exceeding $100 billion) and emerging biotech companies like ATAI or CMPS (typically with market caps under $1 billion). Smaller companies may offer higher growth potential but come with increased risk, while larger companies typically provide more stability. Market cap gives investors perspective on a company's size and maturity within the mental wellness landscape.

What is neuroplasticity and why is it relevant to these companies?

Neuroplasticity refers to the brain's ability to reorganize itself by forming new neural connections, allowing neurons to adjust their activities in response to new situations or changes in their environment. Several companies in this group, like ENVB, are developing "neuroplastogenic" compounds that promote this process to treat mental health conditions. Unlike traditional psychiatric medications that often just manage symptoms by altering neurotransmitter levels, neuroplastogenic treatments aim to actually rewire problematic brain circuits. This approach represents a fundamental shift in mental health treatment – potentially offering longer-lasting results by addressing root causes rather than just symptoms.

14 handpicked stocks

Mind & Spirit

Invest in companies transforming mental healthcare through innovative treatments and technologies. These carefully selected stocks represent leaders in psychedelic therapeutics, telehealth platforms, and neurological treatments addressing the growing global demand for mental wellness solutions.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Hims & Hers Health Inc

HIMS

Current price

$56.31

This telehealth platform offers direct-to-consumer access to treatments for mental health conditions like anxiety and depression.

Teladoc Inc

TDOC

Current price

$7.80

As a leader in virtual care, it provides extensive mental healthcare services, connecting patients with therapists and psychiatrists.

ATAI Life Sciences NV

ATAI

Current price

$5.11

It operates a decentralized platform to develop a broad pipeline of psychedelic and non-psychedelic mental health treatments.

Compass Pathways Plc

CMPS

Current price

$5.77

Mind Medicine (MindMed) Inc.

MNMD

Current price

$12.33

NEURONETICS INC

STIM

Current price

$3.76

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+227.78%

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About This Group of Stocks

Our Expert Thinking

This collection targets the rapidly expanding mental health market by focusing on companies developing breakthrough treatments and technologies. From novel psychedelic compounds to telehealth services, these stocks represent the future of brain and emotional wellness in an increasingly destigmatized field.

What You Need to Know

This portfolio blends emerging biotechs with established medical companies creating next-generation mental health treatments. The group benefits from powerful trends including regulatory evolution, virtual care adoption, and growing acceptance of alternative therapies for psychological conditions.

Why These Stocks

We've handpicked companies with clear missions to advance mental healthcare through innovation. This selection includes both pioneering startups developing novel compounds and established firms with strong market positions, all poised to address large, underserved patient populations.

Group Performance Snapshot

227.78%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 227.78% over the next year.

11 of 14

Stocks Rated Buy by Analysts

11 of 14 assets in this group are rated Buy by professional analysts.

6.6% vs 4%

Group Growth vs Bank interest

This group averaged a 6.6% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🧠

Breaking Mental Health Barriers

These companies are pioneering treatments once considered impossible, creating therapies that could help millions with treatment-resistant conditions like severe depression and PTSD.

🚀

Regulatory Winds Shifting

A fundamental change in how regulators view novel therapeutics is quickly unlocking massive new markets, especially for previously restricted compounds showing promise for mental health.

💊

The Next Healthcare Revolution

Mental health is becoming as important as physical health, with spending expected to surge as stigma fades and innovative digital platforms make treatment more accessible than ever before.

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