Jefferies Analyst Says U.S. Government Reschedules Medical Marijuana to CIII
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy ATAI?
Jefferies analyst Andrew Tsai notes that the highest level of the U.S. government has signed an executive order to encourage the DEA to reschedule medical marijuana to a less stringent CIII for CNS indications like pain. The firm could see non-recreational psychedelics eventually follow suit, as long as sponsors continue producing Phase II/III data to suggest psychedelics can safely produce profound efficacy in mental health - arguably a function of time. Jefferies notes it thinks Atai Beckley's (ATAI) proprietary psychedelics have promise in tough $1B-plus mental health disorders. Other publicly traded companies in the space include Supernus (SUPN) and Cybin (CYBN).
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Analyst Views on ATAI
Wall Street analysts forecast ATAI stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 4.710
Low
10.00
Averages
13.00
High
16.00
Current: 4.710
Low
10.00
Averages
13.00
High
16.00
About ATAI
AtaiBeckley Inc is a clinical-stage biotechnology company focused on developing rapid-acting, durable and convenient mental health treatments. The Company’s pipeline of novel therapies includes BPL-003 (mebufotenin benzoate nasal spray) for treatment-resistant depression (TRD), VLS-01 (DMT buccal film) for TRD and EMP-01 (R-MDMA HCI) for social anxiety disorder. The Company is also advancing a drug discovery program to identify novel, non-hallucinogenic 5-HT2AR agonists for opioid use disorder and TRD. BPL-003 is a proprietary synthetic intranasal formulation of mebufotenin benzoate being developed as a potential treatment for people living with TRD. VLS-01 is a proprietary oral transmucosal film formulation of N,N-Dimethyltryptamine (DMT) being developed as a potential treatment for people living with TRD. EMP-01 is an oral formulation of R-MDMA, being developed as a potential treatment for people living with social anxiety disorder.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Directs Acceleration of Psychedelic Drug Reviews
- Stock Surge: Atai Beckley's shares jumped 21.59% to close at $0.87 following Trump's directive to accelerate psychedelic drug reviews, reflecting strong market confidence in new drug development.
- Regulatory Acceleration: Trump's executive order aims to shorten the regulatory evaluation timelines for certain psychedelic drugs, with the FDA potentially completing reviews for breakthrough-designated therapies in as little as one to two months, expediting market entry.
- Optimistic Industry Outlook: Industry leaders assert that Trump's order validates the significance of psychedelic research and is expected to facilitate faster access to promising new treatments for patients, addressing the growing mental health needs.
- Clinical Trial Progress: Atai Beckley's investigational nasal spray BPL-003 has received breakthrough therapy designation and demonstrated promising results in Phase 2 studies, with plans to initiate Phase 3 trials later this year, further solidifying its leadership position in the psychedelic market.
See More
AtaiBeckley Reports Significant Efficacy of EMP-01 in Social Anxiety Disorder
- Significant Clinical Efficacy: EMP-01 demonstrated a clinically meaningful reduction of 38% and 32% in symptoms on the SPIN and SAFE scales, respectively, indicating its potential to improve patient quality of life significantly.
- Positive Patient Response: At Day 43, 49% of patients were rated as significantly improved on the global impression scale compared to only 12% in the placebo group, suggesting that EMP-01 may enhance treatment adherence through noticeable patient-perceived benefits.
- Good Safety Profile: Among 70 participants, EMP-01 reported no severe adverse events, and a 97% retention rate indicates excellent tolerability and high patient acceptability, laying a solid foundation for future clinical applications.
- Innovative Treatment Regimen: Unlike traditional daily dosing, EMP-01 requires only two administrations to achieve significant improvements by Day 43, suggesting its differentiated advantage as a new treatment option for social anxiety disorder that could transform existing treatment paradigms.
See More
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- Fed Nomination Hearing: Trump's nominee for Federal Reserve chair, Kevin Warsh, will face the Senate Banking Committee for confirmation, emphasizing the need for Fed independence from political influence, a stance that may affect his confirmation prospects amid Trump's push for lower interest rates.
- Market Volatility: The Nasdaq Composite ended its longest winning streak since 1992, while the S&P 500 also retreated, as market uncertainty grew due to Trump's military threats against Iran; however, small-cap stocks showed resilience, with the Russell 2000 reaching new highs.
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See More
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- CEO Transition Impact: Apple announced that hardware chief John Ternus will replace Tim Cook as CEO in September, with Cook moving to executive chairman; this shocking news is viewed positively as Ternus faces the challenge of bridging the AI gap with competitors.
- Fed Nomination Hearing: Kevin Warsh, Trump's nominee for Federal Reserve chair, will face the Senate Banking Committee for confirmation, emphasizing the need for Fed independence from political influence, a stance that may affect his confirmation process.
- Market Volatility: The Nasdaq Composite ended its longest winning streak since 1992, while the S&P 500 also retreated, as market uncertainty grew due to Trump's military threats against Iran, although small-cap stocks showed strong performance.
- UnitedHealth Group's Strong Performance: UnitedHealth Group's first-quarter results exceeded expectations, leading to a more than 7% stock price increase and an upgraded earnings outlook for 2026, driven by improved management of medical costs, which is crucial for its profitability.
See More
Atai Beckley Shares Surge 21% Following Trump’s Psychedelic Treatment Review Acceleration
- Regulatory Review Acceleration: President Trump has directed U.S. health regulators to expedite reviews of psychedelic treatments for severe mental illnesses, potentially allowing drugs with breakthrough therapy designations to complete reviews in as little as one to two months, significantly shortening the time to market.
- Stock Surge: Atai Beckley (NASDAQ: ATAI) shares jumped over 21% following the announcement, with a market cap of approximately $1.8 billion, reflecting investor optimism about the psychedelic drug market's future.
- Breakthrough Therapy Progress: Atai Beckley is developing a nasal spray, BPL-003, for treatment-resistant depression, which has received breakthrough therapy designation and showed promising results in Phase 2 studies, with Phase 3 trials expected to begin later this year.
- Industry Outlook: Industry leaders believe Trump's executive order validates the importance of psychedelic research and could accelerate the delivery of new drugs to patients, thereby bringing new hope and opportunities to mental health treatment.
See More
Trump Signs Executive Order to Accelerate Psychedelic Research
- Research Acceleration Policy: President Trump's executive order aims to expedite research on psychedelics like psilocybin and MDMA, although it does not alter drug scheduling, reflecting a focus on a medical-first framework that may pave the way for future cannabis rescheduling.
- Positive Market Reaction: Following the signing of the order, psychedelic developers like AtaiBeckley saw stock prices rise approximately 25%, indicating a positive market response to the policy shift and growing investor confidence in the psychedelic sector.
- Safety Concerns: The inclusion of ibogaine in the order raises safety concerns due to its potential cardiac risks, despite its applications being studied for PTSD and addiction, highlighting significant barriers to commercialization.
- Industry Outlook: While the psychedelic industry lacks a commercial market, the rise of clinical-stage developers suggests that the executive order provides crucial support for the legitimacy of psychedelics, potentially fostering broader acceptance of plant-based alternative medicines in the future.
See More
Trump Directs Acceleration of Psychedelic Drug Reviews
- Stock Surge: Atai Beckley's shares jumped 21.59% to close at $0.87 following Trump's directive to accelerate psychedelic drug reviews, reflecting strong market confidence in new drug development.
- Regulatory Acceleration: Trump's executive order aims to shorten the regulatory evaluation timelines for certain psychedelic drugs, with the FDA potentially completing reviews for breakthrough-designated therapies in as little as one to two months, expediting market entry.
- Optimistic Industry Outlook: Industry leaders assert that Trump's order validates the significance of psychedelic research and is expected to facilitate faster access to promising new treatments for patients, addressing the growing mental health needs.
- Clinical Trial Progress: Atai Beckley's investigational nasal spray BPL-003 has received breakthrough therapy designation and demonstrated promising results in Phase 2 studies, with plans to initiate Phase 3 trials later this year, further solidifying its leadership position in the psychedelic market.
See More
AtaiBeckley Reports Significant Efficacy of EMP-01 in Social Anxiety Disorder
- Significant Clinical Efficacy: EMP-01 demonstrated a clinically meaningful reduction of 38% and 32% in symptoms on the SPIN and SAFE scales, respectively, indicating its potential to improve patient quality of life significantly.
- Positive Patient Response: At Day 43, 49% of patients were rated as significantly improved on the global impression scale compared to only 12% in the placebo group, suggesting that EMP-01 may enhance treatment adherence through noticeable patient-perceived benefits.
- Good Safety Profile: Among 70 participants, EMP-01 reported no severe adverse events, and a 97% retention rate indicates excellent tolerability and high patient acceptability, laying a solid foundation for future clinical applications.
- Innovative Treatment Regimen: Unlike traditional daily dosing, EMP-01 requires only two administrations to achieve significant improvements by Day 43, suggesting its differentiated advantage as a new treatment option for social anxiety disorder that could transform existing treatment paradigms.
See More
Apple CEO Transition Sparks Market Reactions
- Apple CEO Change: Apple announced that hardware chief John Ternus will replace Tim Cook as CEO in September, with Cook transitioning to executive chairman; this surprising move shocked investors but is seen positively, as Ternus must address Apple's lag in artificial intelligence, impacting the company's strategic direction.
- Fed Nomination Hearing: Trump's nominee for Federal Reserve chair, Kevin Warsh, will face the Senate Banking Committee for confirmation, emphasizing the need for Fed independence from political influence, a stance that may affect his confirmation prospects amid Trump's push for lower interest rates.
- Market Volatility: The Nasdaq Composite ended its longest winning streak since 1992, while the S&P 500 also retreated, as market uncertainty grew due to Trump's military threats against Iran; however, small-cap stocks showed resilience, with the Russell 2000 reaching new highs.
- UnitedHealth Group Strong Performance: UnitedHealth Group's first-quarter results exceeded expectations, leading to a more than 7% stock price increase, driven by improved management of medical costs and a favorable medical benefit ratio, with optimistic earnings outlook for 2026 further boosting investor confidence.
See More
Apple's CEO Transition Sparks Market Reactions
- CEO Transition Impact: Apple announced that hardware chief John Ternus will replace Tim Cook as CEO in September, with Cook moving to executive chairman; this shocking news is viewed positively as Ternus faces the challenge of bridging the AI gap with competitors.
- Fed Nomination Hearing: Kevin Warsh, Trump's nominee for Federal Reserve chair, will face the Senate Banking Committee for confirmation, emphasizing the need for Fed independence from political influence, a stance that may affect his confirmation process.
- Market Volatility: The Nasdaq Composite ended its longest winning streak since 1992, while the S&P 500 also retreated, as market uncertainty grew due to Trump's military threats against Iran, although small-cap stocks showed strong performance.
- UnitedHealth Group's Strong Performance: UnitedHealth Group's first-quarter results exceeded expectations, leading to a more than 7% stock price increase and an upgraded earnings outlook for 2026, driven by improved management of medical costs, which is crucial for its profitability.
See More
Atai Beckley Shares Surge 21% Following Trump’s Psychedelic Treatment Review Acceleration
- Regulatory Review Acceleration: President Trump has directed U.S. health regulators to expedite reviews of psychedelic treatments for severe mental illnesses, potentially allowing drugs with breakthrough therapy designations to complete reviews in as little as one to two months, significantly shortening the time to market.
- Stock Surge: Atai Beckley (NASDAQ: ATAI) shares jumped over 21% following the announcement, with a market cap of approximately $1.8 billion, reflecting investor optimism about the psychedelic drug market's future.
- Breakthrough Therapy Progress: Atai Beckley is developing a nasal spray, BPL-003, for treatment-resistant depression, which has received breakthrough therapy designation and showed promising results in Phase 2 studies, with Phase 3 trials expected to begin later this year.
- Industry Outlook: Industry leaders believe Trump's executive order validates the importance of psychedelic research and could accelerate the delivery of new drugs to patients, thereby bringing new hope and opportunities to mental health treatment.
See More
Trump Signs Executive Order to Accelerate Psychedelic Research
- Research Acceleration Policy: President Trump's executive order aims to expedite research on psychedelics like psilocybin and MDMA, although it does not alter drug scheduling, reflecting a focus on a medical-first framework that may pave the way for future cannabis rescheduling.
- Positive Market Reaction: Following the signing of the order, psychedelic developers like AtaiBeckley saw stock prices rise approximately 25%, indicating a positive market response to the policy shift and growing investor confidence in the psychedelic sector.
- Safety Concerns: The inclusion of ibogaine in the order raises safety concerns due to its potential cardiac risks, despite its applications being studied for PTSD and addiction, highlighting significant barriers to commercialization.
- Industry Outlook: While the psychedelic industry lacks a commercial market, the rise of clinical-stage developers suggests that the executive order provides crucial support for the legitimacy of psychedelics, potentially fostering broader acceptance of plant-based alternative medicines in the future.
See More
