Psychedelic Stocks Tank After FDA Advisors Shoot Down MDMA Therapy For PTSD

Forbes June 5, 2024
Robert Hart

Topline

Shares for companies focused on psychedelic medicines plummeted during premarket trading on Wednesday after independent experts advised the Food and Drug Administration against approving psychedelic and stimulant drug MDMA, commonly known as ecstacy or molly, for post-traumatic stress disorder, a major setback for those hoping to open a new era of medicine for the often-outlawed substances.

Key Facts

Key Background

Psychedelics are a broad class of drugs that can alter mood, thoughts and perception. Many drugs in the category, which includes substances like MDMA, LSD and psilocybin — the active compound in “magic mushrooms” — are deemed illegal in many parts of the world, though they are increasingly viewed by experts as potentially promising treatments for an array of...

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