By Jaimy Lee

An executive order aims to speed up how quickly psychedelic drugs for mental illness can move through the regulatory process

Podcaster Joe Rogan (middle right) hugs W. Bryan Hubbard (right), CEO of the nonprofit Americans for Ibogaine, after President Donald Trump signed an executive order that speeds up research into certain psychedelic drugs. Health officials Marty Makary (left) and Robert F. Kennedy Jr. (middle left) also attended the event on Saturday. (Photo by Jim WATSON / AFP via Getty Images)

The stocks of several companies developing psychedelic treatments for mental illnesses soared in early trading on Monday after President Donald Trump put his support behind them.

Compass Pathways (CMPS) shares were up 44%; AtaiBeckley (ATAI) gained 31.4%; GH Research (GHRS) rallied 20.3%; and Definium Therapeutics (DFTX) was up 8.5%.

In an executive order on Saturday, Trump announced several changes aimed at opening up access to these drugs, including putting $50 million into research for psychedelics. He specifically cited ibogaine, a psychoactive alkaloid from a Central African shrub, as a possible treatment for veterans. Texas last year passed a law that puts $50 million into research studying ibogaine for mental-health conditions like opioid-use disorder.

"It's for a lot of people, but it's for our military in particular," Trump said. "The suicide epidemic among veterans is a national tragedy."

The executive order has several components. It says companies that already received what is called a breakthrough-therapy designation from the Food and Drug Administration can get a voucher that speeds up the regulatory process. This includes Definium's LSD drug for major depressive disorder and generated anxiety and Compass's psilocybin for treatment-resistant depression.

Plus, patients can now access psychedelic drugs via the Right to Try Act, which allows people to use experimental drugs if they have a life-threatening condition and have maxed out other treatment options. Per the order, the government will quickly reschedule any Schedule 1 drugs that have gone through a Phase 3 trial for a mental illness.

"We see the signing of this EO as a substantial step towards diminishing regulatory risk in this emerging class of therapies, enabling investor comfort," RBC Capital Markets analyst Brian Abrahams told investors. "While not explicitly recommending psychedelics, the nature of the EO strongly suggests a broad openness to psychedelics."

Definium has two readouts on the horizon. Its first Phase 3 data on depression should arrive by July and the first data on anxiety sometime in the third quarter.

-Jaimy Lee

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04-20-26 1004ET