- A new Johns Hopkins study found that a single dose of psilocybin, combined with therapy, helped smokers stay cigarette‑free at six months far more effectively than nicotine patches
- Participants using psilocybin had over six times greater odds of quitting, with 17 abstinent at six months versus just 4 in the nicotine‑patch group
- Researchers say psychedelics may help “shake up” ingrained habits by boosting neuroplasticity, though larger and more diverse studies are still needed
- The findings support growing interest in psychedelic-based treatments, highlighting companies like Compass Pathways (NASDAQ:CMPS), Cybin (NASDAQ:HELP), and GH Research (NASDAQ:GHRS) as sector players to watch
For decades, public‑health campaigns have pushed relentlessly to curb cigarette use.
Yet smoking remains the leading cause of preventable death in the United States, and the rate of successful long‑term quitting has barely budged. Most attempts fail. Even with medications and counselling, long‑term success typically reaches only 20 per cent to 30 per cent every attempt. After twenty years without a new smoking‑cessation medication, researchers and policymakers have been searching for a breakthrough.
A new clinical study from Johns Hopkins University may represent exactly that—and its implications reverberate far beyond medicine, extending into one of the most closely watched emerging sectors in public markets: psychedelic therapeutics.
This article is a journalistic opinion piece that has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
A landmark study on psilocybin and smoking cessation
The Johns Hopkins trial, recently published in JAMA Network Open, compared two treatments for individuals trying to quit: standard nicotine patches versus psilocybin, the psychoactive compound found in “magic mushrooms.” All 82 participants also took part in 13 weeks of cognitive behavioural therapy (CBT), a standard smoking‑cessation intervention.
The results were striking. At six months, participants who took a single high dose of psilocybin had more than six times higher odds of remaining cigarette-free compared to the nicotine‑patch group. Seventeen participants in the psilocybin arm remained abstinent at the six-month mark, compared with only four using nicotine patches.
“I was surprised by the sheer magnitude of the effect,” said study author Matthew Johnson, a long‑time psychedelics researcher and professor of psychiatry at Johns Hopkins.
The study design echoed the structure of many psychedelic‑assisted therapy trials: participants received preparation, entered a guided session with eye shades and music, and experienced a primarily self‑directed psychological journey. While the absence of a placebo remains a limitation—participants knew whether they were receiving psilocybin—researchers argue that achieving blinding in psychedelic research has proven exceptionally challenging.
Even so, addiction experts unaffiliated with the study have described the findings as “exciting” and potentially paradigm‑shifting. As Megan Piper of the UW Center for Tobacco and Research Intervention noted, the field has desperately needed a novel therapeutic approach after decades of stagnation.
Why psychedelics may work where other interventions haven’t
Traditional cessation medications target nicotine receptors, aiming to reduce cravings or mitigate withdrawal. Psilocybin works very differently. Researchers believe the psychedelic experience may disrupt entrenched behavioural and cognitive patterns, unlocking what some describe as increased neuroplasticity—a temporary state in which patients may be more open to shifting perspectives and habits.
Addiction psychiatrists emphasize that the therapeutic context is essential. As Dr. Brian Barnett of the Cleveland Clinic observed, “It’s not the drug by itself here. It’s really harnessing the neuroplastic and learning effects that happen after the exposure.”
Psilocybin trials for alcohol use disorder have shown similar promise, and early interest in ibogaine for opioid addiction is growing. Still, the majority of psychedelic‑industry investment has historically targeted depression, PTSD, and anxiety. Smoking cessation—long a massive public‑health challenge—may soon become a newly validated frontier.
For investors eyeing the psychedelic sector, the Johns Hopkins results underscore why several small‑cap companies continue to push toward regulatory approval for therapies using psilocybin and related compounds. Below are three publicly traded players at the forefront of this rapidly evolving field.
Three psychedelic small caps to watch
Compass Pathways plc (NASDAQ:CMPS) is one of the most widely recognized companies in the psychedelic‑medicine space. Its flagship program, COMP360, is a proprietary formulation of psilocybin currently in late‑stage clinical development for treatment‑resistant depression. The company has also expanded exploratory research into additional indications, including PTSD and anorexia nervosa.
Compass has invested heavily in developing scalable therapy infrastructure—an advantage given that psychedelic treatments require trained facilitators and controlled environments. While smoking cessation is not yet part of the company’s clinical pipeline, Compass remains one of the industry’s most advanced drug‑development platforms and could stand to benefit broadly from increased scientific validation of psilocybin’s medical potential.
Compass Pathways stock (NASDAQ:CMPS) closed 9 per cent higher at US$7.49 and has climbed nearly 100 per cent since a year ago.
Cybin Inc. (NASDAQ:HELP) focuses on next‑generation psychedelic compounds designed to improve upon the characteristics of traditional psychedelics, including psilocybin. Its programs target depression, anxiety disorders, and other mental‑health conditions using modified psychedelic molecules with engineered pharmacokinetics—such as shorter duration or reduced variability between patients.
The company’s strategy involves pairing these compounds with digital therapeutic tools, aiming to enhance therapeutic outcomes and streamline the clinical process. While Cybin’s pipeline is centred on mental‑health indications, the Johns Hopkins results could help broaden investor interest in the overall space, especially in companies working to modernize and optimize classic psychedelic compounds.
Cybin stock (NASDAQ:HELP) closed 4.8 per cent higher at US$5.79, but has fallen more than 20 per cent since this time a year ago.
GH Research plc (NASDAQ:GHRS) is developing novel treatments based on 5-MeO-DMT, an ultra‑short‑acting psychedelic that produces an intense, fast‑onset experience lasting only minutes. The company’s lead candidate, GH001, is being studied for treatment‑resistant depression.
Though 5‑MeO‑DMT has not been explored as deeply for addiction as psilocybin, its short duration makes it an intriguing compound for future research—and an appealing potential option for clinicians who must balance efficacy with logistical demands. GH Research remains a smaller but scientifically ambitious player in the sector, with a differentiated approach and a uniquely rapid‑acting molecule.
GH Research stock (NASDAQ:GHRS) closed 1.3 per cent lower at US$15.76, though it is trading more than 38 per cent higher than where it was this time last year.
A new trip for health care?
The Johns Hopkins smoking‑cessation study reinforces a growing body of evidence suggesting that psychedelics—paired with structured therapy—may offer benefits in areas where traditional treatments have reached their limits. For public health, the implications could be profound. For investors, the findings offer another signal that psychedelic medicine is not merely a speculative trend but a maturing domain of biomedical innovation.
As the field advances toward larger, more rigorous trials, companies like Compass Pathways, Cybin, and GH Research remain positioned at the center of one of the most compelling therapeutic—and investment—stories of the coming decade.
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