The psychedelics boom may be even more profitable than cannabis.

Granted, such drugs have been written off for years.

But that may not be the case for much longer.  With many like LSD, MDMA, and psilocybin showing promise for treating a range of mental and health conditions, including obsessive-compulsive disorder, PTSD, opioid addiction, alcoholism, eating disorders, depression, anxiety, smoking, and perhaps even obesity, the ban could soon be lifted.

Johns Hopkins Medicine, for example just announced the launch of the Center for Psychedelic and Consciousness Research to study compounds like LSD and psilocybin to treat a range of mental health problems, including anorexia, addiction and depression.  Psychiatrists at Johns Hopkins University even found that mushrooms can help with smoking cessation, and another study found it can assist with alcohol dependence.

Researchers from the University of California David found that micro-dosing with psychedelic drugs for a prolonged period of time showed promise.  “Our study demonstrates that psychedelics can produce beneficial behavioral effects without drastically altering perception, which is a critical step towards producing viable medicines inspired by these compounds," said David Olson of UC Davis, as quoted by Esquire.

Even states are waking up to the opportunity.

Denver, Oakland, and Santa Cruz just decriminalized the possession of products containing psilocybin or psilocin. Washington, D.C. could be next.  As studies uncover the potential value of psychedelics, it could lead to another sizable boom – bigger than cannabis.

Some of the stocks to keep on radar in this sector include:

Mind Medicine Inc. (MMEDF)

Most recently, the company added MDMA to its R&D pipeline, according to the latest press release.  The latest development comes as part of MindMed's exclusive license and collaboration agreement with the University Hospital Basel's Liechti Lab. It also just advanced Phase 2 LSD micro-dosing trials for adult ADHD.

Champignon Brands Inc. (SHRMF)

Champignon Brands just secured its psilocybin supply, and now can use it for traumatic brain injury and PTSD-focused preclinical studies at the University of Miami School of Medicine.

“We hope to continue to make significant progress on our preclinical trial studying the effects of an oral combination of psilocybin and CBD on [mild traumatic brain injury] associated with PTSD,” lead investigator Dr. Michael Hoffer said. “Since mTBI associated with PTSD is a combination disorder that affects more than 10 million individuals per year and has no proven medical treatment, our novel combination of medicines could be a breakthrough in treating these indications.”