Psychedelic and neuroactive-compound biotech stocks are soaring on Monday, April 20, 2026, after a major White House executive order signaled strong federal support to date for psychedelic-based therapies. Psyence Biomedical (PBM), COMPASS Pathways (CMPS), Enveric Biosciences (ENVB), and Atai Life Sciences (ATAI) are up 83%, 34%, 158%, and 29%, respectively, as investors rush into the sector.
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President Donald Trump signed the executive order “Accelerating Medical Treatments for Serious Mental Illness” on Saturday, April 18, 2026. The order aims to reduce regulatory barriers for psychedelic drugs. Key provisions include:
- Faster FDA Reviews: The FDA will issue “National Priority Vouchers” to drugs with Breakthrough Therapy status, potentially cutting review times to 1-2 months instead of the typical 6-10 months.
- Federal Funding: The order allocates $50 million for research into compounds such as ibogaine and psilocybin.
- Rescheduling Provisions: Any Schedule I psychedelic that completes Phase 3 trials for mental-health indications must be quickly rescheduled.
- Expanded Access: Patients may gain earlier access to experimental psychedelic treatments under the Right to Try Act.
This major policy shift is seen as a turning point that could accelerate commercialization timelines and unlock new capital for emerging drug developers.
Stock-Specific Drivers
Psyence Biomedical led the rally, boosted by the executive order and the company’s announcement regarding its leadership in GMP-certified ibogaine manufacturing. PBM also expanded its Australian clinical trial sites and added an intraday purchase mechanism to its financing deal, giving it greater financial flexibility.
Further, COMPASS Pathways climbed sharply as its lead candidate, COMP360, a synthetic psilocybin formulation, already holds “breakthrough therapy” designation. Under the new policy, COMP360 is positioned to benefit directly from priority vouchers and significantly faster FDA review timelines.
Atai Life Sciences surged in sympathy with the sector. Moreover, Canaccord Genuity analyst Sumant Kulkarni raised the price target to $15, citing progress on ATAI’s BPL-003 nasal spray as it approaches Phase 3 trials.
Finally, Enveric Biosciences rallied on both the executive order and the closing of a $13.9 million private placement, which will help advance its neuroplastogen pipeline.