Investing.com -- Psychedelic-related stocks surged in premarket trading Monday after President Donald Trump signed an executive order to accelerate research and expand patient access to psychedelic substances, which have shown promise in treating post-traumatic stress disorder (PTSD) and other serious mental illnesses.

Among the stocks that reacted positively, Compass Pathways (NASDAQ: CMPS) surged more than 25% in the premarket by 05:16 ET. AtaiBeckley (NASDAQ: ATAI), Definium Therapeutics (NASDAQ: DFTX) and GH Research (NASDAQ: GHRS) also jumped between 14% and 18%.

"In many cases, these experimental treatments have shown life-changing potential for those suffering from severe mental illness and depression, including our cherished veterans," Trump said at a signing ceremony in the Oval Office.

He also announced a $50 million federal investment in further research into ibogaine, a psychedelic derived from an African plant that has drawn interest for its potential to treat opioid addiction and PTSD.

“President Trump is providing an official stamp of validation to the class in the form of an executive order, reassuring us that the FDA/HHS/White House’s support of psychedelics is real/actionable,” Jefferies analyst Andrew Tsai said in a note.

“With several executive branches aligned, investor mindshare should rise meaningfully ahead of potential approvals in 2027-30, they wrote.

The path to commercialization could accelerate further, as psychedelics that have received FDA breakthrough therapy designations (BTDs) appear set to be granted Commissioner National Priority Review Vouchers (CNPV), the analysts added, highlighting stocks including AtaiBeckley, Definium Therapeutics, Helus Pharma, Compass Pathways, Otsuka, and Reunion Neuroscience as potential beneficiaries.

The order directs the FDA to issue priority review vouchers to psychedelic programs that have received breakthrough therapy designations, which Jefferies said could compress the typical six-to-ten month review timeline down to one to two months.

The FDA and DEA are also instructed to establish clearer pathways for patient access and to initiate rescheduling of psychedelics, which are currently classified as Schedule I controlled substances.