• President Trump's executive order directs the FDA to fast-track psychedelic drug reviews, sparking a rally in sector stocks.
  • The order includes $50 million in federal funding and pathways for expanded access under right-to-try laws.
  • Companies like Atai Life Sciences, Cybin, and Beckley Psytech see shares surge as investors anticipate faster approvals.

A New Era for Psychedelic Research

President Donald Trump signed an executive order on Thursday that dramatically accelerates federal support for psychedelic drug research, directing the FDA to prioritize reviews and leverage breakthrough-therapy designations. The move, which includes $50 million in new federal funding, marks a significant policy shift aimed at removing bureaucratic hurdles for experimental treatments targeting PTSD, depression, and addiction.

"This is about giving veterans and millions of Americans access to potentially life-saving therapies without years of unnecessary delays," a senior administration official said, speaking on condition of anonymity. The order also explores administering certain psychedelics under existing right-to-try mechanisms, according to people familiar with the matter.

Shares of psychedelic drug developers surged on the news. Atai Life Sciences jumped 18%, while Cybin and Beckley Psytech gained 12% and 15%, respectively, in afternoon trading. Investors are betting that faster review timelines could bring near-term approvals for companies with late-stage clinical programs.

Industry Reactions and Implications

The executive order intensifies ongoing debates about safety and access. Mental health advocates have praised the move, while some researchers caution about rushing unproven therapies. "We need rigorous data, but this could catalyze an entire field," said a neuroscientist at a major university who requested anonymity to speak freely.

Federal regulators have already granted breakthrough therapy status to several psychedelic compounds, including MDMA for PTSD and psilocybin for depression. The new directive could expand that designation and shorten the path to commercialization.

Correction: An earlier version of this article misstated the funding amount; it is $50 million, not $100 million.