Shares of AtaiBeckley (ATAI +1.32%) leaped on Monday after President Donald Trump directed U.S. health regulators to accelerate reviews of psychedelic treatments for severe mental illnesses.
By the close of trading, AtaiBeckley's stock price was up more than 21%.
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A new class of drugs could be helping people by this summer
Trump's executive order seeks to reduce regulatory evaluation timelines for certain psychedelic compounds. Those that have received breakthrough-therapy designations from the U.S. Food and Drug Administration (FDA) could see their reviews completed in as few as one to two months.
Investors in developers of psychedelic drugs cheered the news. Industry leaders say Trump's order validates psychedelic research and will help to bring promising new drugs to patients faster.
NASDAQ: ATAI
Key Data Points
AtaiBeckley is set to be a leader in psychedelics
With a market cap of roughly $1.8 billion, AtaiBeckley is one of the biggest psychedelic drugmakers. The mental health-focused biotechnology company is developing a nasal spray for treatment-resistant depression.
The investigational drug, BPL-003, holds breakthrough therapy designation and showed promising results in a Phase 2 study. AtaiBeckley expects to begin Phase 3 trials later this year.
With its focus on rapid-acting psychedelic treatments, AtaiBeckley could help to usher in a new wave of mental health therapies.
