ToplineShares of biotech firms and companies providing psychedelic-assisted therapy surged on Monday, after analysts applauded an executive order from President Donald Trump that expedited research of some psychedelic drugs, including one controversial treatment backed by Republican lawmakers despite safety risks. One analyst applauded Trump’s order as an “official stamp of validation” for psychedelics. The Washington Post via Getty ImagesKey FactsShares of AtaiBeckley, a drug development platform developing psychedelic therapies for mental health disorders, rallied 31% in early trading Monday, adding to further gains from Compass Pathways (38.9%), GH Research (20.9%) and Definium Therapeutics (9.7%).Other psychedelic-related stocks also surged, including Cybin (4.9%) and Enveric Biosciences, which skyrocketed 187%.A broader rally was sparked after Trump signed an executive order on Saturday to fast-track research and access to psychedelics to treat serious mental illness, including post-traumatic stress disorder and opioid addiction, which Trump said would “dramatically accelerate” access to treatments.Food and Drug Administration Commissioner Marty Makary said the agency would issue national priority review vouchers for three psychedelics, allowing the drugs to be approved quickly if they are “in line with our national priorities,” though he did not specify which companies would receive the vouchers.Jefferies analyst Andrew Tsai said in a note on Monday that Trump’s order is an “official stamp of validation” for psychedelics and should reassure investors the Trump administration’s support of the drugs is “real” and “actionable.”Investor optimism should “rise meaningfully” ahead of potential regulatory approvals between 2027 and 2030, Tsai said, and RBC Capital Markets analyst Brian Abrahams wrote the order is a “substantial step” to reducing regulatory risks of psychedelics and implies a “broad openness” to the drugs.What Is Ibogaine?The only drug named in Trump’s executive order is ibogaine, a psychedelic commonly used to treat depression, anxiety and PTSD among veterans. The drug, a Schedule I substance banned in the U.S., has been backed by Republicans in Texas in recent years who argue in favor of ibogaine’s success with veterans. Gov. Greg Abbott, R-Texas, signed a bill in June 2025 to invest $50 million in ibogaine research, and state officials launched a state-led research program earlier this year, despite failing to find a company to develop the drug for FDA approval. Research on the drug was funded by the National Institutes of Health in the 1990s, though the agency reportedly discontinued the work because of the drug’s “cardiovascular toxicity,” and recent research suggests using the drug could result in heart attacks. Ibogaine is known to cause irregular heart rhythms and has been linked to more than 30 deaths, according to the Multidisciplinary Association for Psychedelic Studies.Surprising FactPodcaster Joe Rogan joined Trump in the White House as the president signed the executive order. Rogan said he texted Trump information on ibogaine, and Trump told him, “Sounds great. Do you want FDA approval? Let’s do it.”Key BackgroundPossible approval for psychedelics follows a broader push from Health and Human Services Secretary Robert F. Kennedy Jr., who said last year the FDA’s “aggressive suppression of psychedelics” was about to end. The agency rejected MDMA as a treatment for PTSD under President Joe Biden in 2024, citing the quality of research and questions over a clinical trial design. Reform of psychedelic drug laws and policies has shifted in recent years, after a 2013 study found that low doses of psilocybin could be beneficial to patients suffering from PTSD, and a 2016 trial suggested the drug could be used to treat anxiety and depression. Other studies found that increased doses of the drug could instead aggravate distress caused by mental health conditions, however. Further ReadingForbesJoe Rogan—Iran War Critic—Joins Trump At White House As He Loosens Restrictions On PsychedelicsBy Conor Murray