Niche markets come in and out of fashion. But if you feel that the healing power of psychedelics is real and deserves to be explored, then I invite you to check out Mind Medicine (NASDAQ:MNMD) and consider a position in MNMD stock, which I give an “A” in my Portfolio Grader.

It’s a cheap stock, at least for now. But then, so were some now-famous cannabis stocks back in 2017, before the decriminalization movement spread and share prices exploded.

There’s no way to guarantee that the same thing will happen with MNMD stock. Keep in mind, it’s a speculative bet on the future of psychedelic science.

That being said, it’s exciting to delve into the vast and underappreciated world of alternative therapies for mental illness and addiction. And there’s one particular drug that could unlock healing powers — and profits for early-stage investors.

MNMD Stock at a Glance

To be honest, if you didn’t already own MNMD stock in early 2020, then you missed out on an astounding rally.

How big was the rally? Put it this way: the share price rose from a nickel in February 2020 to $5.77 in April of this year.

We’re talking about cryptocurrency-level gains there. Still, it’s possible to buy MNMD when it pulls back, in hopes of another strong run-up.

And actually, the share price has come down since it topped out in April. As of August 16, the stock closed just a few cents below $3.

In the long term, the shareholders will want to target $5 and then $6. It’s possible that a short squeeze fueled by Reddit traders might get MNMD stock there.

On the other hand, investors shouldn’t count on social media users to pump up a stock.

It’s much more important to believe in a company’s vision for growth and innovation — and thankfully, Mind Medicine has strong potential in that regard.

Beyond Mushrooms

It might be tempting to pigeonhole Mind Medicine as a magic mushroom-focused company.

No doubt, the company has made progress in advancing the science of psilocybin (i.e., magic mushrooms) for healing purposes.

However, it’s important to know that Mind Medicine has branched out beyond psilocybin-assisted therapies.

Notably, the company launched Project Lucy, a commercial drug development program which focuses on experiential doses of LSD for the treatment of anxiety disorders.

Mind Medicine is making excellent progress with Project Lucy. In particular, the company revealed that it’s having a productive discussion with the U.S. Food and Drug Administration, and has even received Type C Meeting Responses from the FDA.

That, in turn, could allow Mind Medicine to finalize its clinical development approach for Project Lucy by selecting Generalized Anxiety Disorder as an initial indication.

It might not be long now, as MindMed is on target to formally submit its Investigational New Drug (IND) application for Project Lucy in 2021’s third quarter.

Plus, the company expects to launch its Phase-2b clinical trial for Project Lucy in the fourth quarter.

Investigating DMT

Again moving outside of magic mushrooms, Mind Medicine is currently exploring DMT as a potential drug candidate.

The research on DMT is really still in its infancy. To give you a quick primer, DMT is short for N,N-Dimethyltryptamine, a psychedelic drug.

You might think it’s entirely synthetic, but that’s actually not the case. DMT, in fact, is found in many plants and animals, including humans.

Research on DMT in the U.S. was halted in the 1970s but then resumed in the 1990s. And now, Mind Medicine is starting a Phase-1 clinical trial to assess the safety, pharmacokinetics and pharmacodynamics of DMT.

It’s an ambitious clinical trial. The study, according to Mind Medicine Executive President Miri Halperin Wernli, “will provide valuable information for future research on DMT as a tool to examine alterations of the mind.”

The Takeaway on MNMD Stock

Sometimes, investors can be like financial explorers. There’s always new ground to cover, new areas to investigate.

That’s what makes Mind Medicine speculative and intriguing.

So if you have an open mind and an adventurous spirit, there could be a major ground-floor opportunity here. The price of MNMD stock is still low, but the breakthrough potential remains quite high.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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