Trump Signs Order to Accelerate Psychedelic Drug Research
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 21 2026
0mins
Source: Newsfilter
- Policy Driving Research: President Trump signed an executive order directing health regulators to expedite reviews of psychedelic drugs and increase federal funding, responding to advocates like Joe Rogan, indicating a governmental acknowledgment of the potential medical uses of psychedelics.
- Clinical Trial Progress: Current trials show strong evidence for the use of psychedelics in treating severe depression and PTSD, particularly in patients unresponsive to existing treatments, suggesting these drugs could become viable new therapeutic options.
- Drug Authorization Status: In the U.S., Johnson & Johnson's esketamine nasal spray is approved for treatment-resistant depression, while countries like Australia and Switzerland have authorized psilocybin and MDMA for various uses, reflecting a global recognition of the therapeutic potential of psychedelics.
- Risk Assessment: Despite the therapeutic promise of psychedelics, risks such as acute anxiety and confusion during administration, as well as higher risks when used outside clinical settings, highlight the need for caution in their research and application.
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 223.240
Low
190.00
Averages
218.50
High
240.00
Current: 223.240
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
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.
- Clinical Trial Success: Nipocalimab met its primary endpoint in the JASMINE study, significantly reducing disease activity in systemic lupus erythematosus (SLE) patients at 24 weeks, with a 53.5% SLE Responder Index 4 (SRI-4) response rate in the 15 mg/kg group compared to 46.7% in the placebo group, indicating its potential therapeutic effect.
- Long-term Efficacy: At 52 weeks, 53.6% of patients receiving nipocalimab achieved an SRI-4 response, suggesting strong prospects for long-term disease control, potentially providing sustained management of SLE for patients.
- Efficacy in Targeted Population: The study revealed higher SRI-4 response rates in autoantibody-positive patients at 58.2%, compared to 36.1% in the placebo group, indicating nipocalimab's potential to change treatment strategies for specific patient populations.
- Good Safety Profile: Nipocalimab's safety profile was consistent with previous studies, with no new safety signals identified; common adverse reactions included nasopharyngitis, headache, and urinary tract infections, suggesting its acceptability in clinical use.
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- Stock Surge: Alvotech (ALVO) shares spiked on Thursday following the company's announcement of the resubmission of U.S. marketing applications for biosimilars targeting Johnson & Johnson's (JNJ) Simponi and Regeneron's (REGN) Eylea, reflecting market optimism about its product prospects.
- Product Positioning: AVT05 is designed as an off-patent version of JNJ's arthritis therapy for both subcutaneous and intravenous administration, while AVT06 targets Regeneron's blockbuster eye therapy Eylea (aflibercept) 2 mg, indicating Alvotech's strategic positioning in the biopharmaceutical sector.
- Application Resubmission Context: The FDA previously denied the Biologics License Applications (BLA) for AVT05 and AVT06 due to manufacturing concerns, and the resubmission includes responses to an FDA Post-Application Action Letter and results from an FDA inspection completed in May 2026, demonstrating the company's commitment to compliance.
- Review Expectations: The resubmitted BLAs are expected to undergo a six-month review by the FDA, and a successful outcome could potentially open the U.S. market for Alvotech, further enhancing its growth potential in the biosimilar sector.
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- Market Rotation Trend: Stocks were mixed on Thursday as investors rotated out of AI hardware into healthcare and financial sectors, and while technology stocks showed recent weakness, Jim believes this reflects a broader rotation rather than a deterioration in fundamentals.
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- CrowdStrike Earnings Reaction: Despite CrowdStrike delivering a beat-and-raise quarter, its stock fell roughly 7%, and Jim believes investors are overlooking the rising demand for cybersecurity, expecting significant improvements in future quarters.
- Rapid Fire Review: Stocks mentioned at the end of Thursday's video included Arm Holdings, Corning, Qnity, FedEx Freight, and Capital One, indicating a focus on diversified investment opportunities.
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- Investment Legacy: Warren Buffett has led Berkshire Hathaway to market-beating returns over 60 years by focusing on industries and companies with competitive advantages, and new CEO Greg Abel has pledged to continue this investment philosophy.
- Healthcare Sector Absence: Despite a diverse portfolio, Berkshire Hathaway is almost entirely absent from the healthcare sector, holding only kidney care giant DaVita, which Buffett added in 2011, while Abel closed the position in UnitedHealth Group in Q1 this year.
- Healthcare Investment Opportunities: The healthcare industry offers a wide range of investment options, with aggressive investors potentially targeting high-growth pharmaceutical companies like Eli Lilly, while conservative investors may prefer dividend-paying companies like Johnson & Johnson and Abbott Laboratories for steady earnings growth.
- Independent Investment Decisions: While it is valuable to follow the investment decisions of Buffett and Abel, investors should also consider the high-potential healthcare sector and make independent investment choices to capitalize on growth opportunities in this field.
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- Investment Legacy: Warren Buffett has led Berkshire Hathaway to market-beating returns over the past sixty years, and new CEO Greg Abel promises to continue this successful path, demonstrating stability and continuity in the company's leadership.
- Portfolio Analysis: Berkshire Hathaway's largest holding is Apple, and although Buffett typically avoids tech stocks, he opened a position in Alphabet last year, with Abel increasing it in Q1 this year, indicating a cautious interest in the tech sector.
- Healthcare Sector Absence: Despite a diverse portfolio, the healthcare sector is almost entirely absent, with only DaVita added in 2011, and Abel closing the position in UnitedHealth Group in Q1, reflecting a potential missed growth opportunity in this vital industry.
- Independent Investor Thinking: While Buffett and Abel's investment strategies are worth following, investors should make independent decisions based on their own needs and resources, as the healthcare sector offers diverse investment opportunities, particularly in biotech and pharmaceuticals, which could yield significant returns.
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- Clinical Trial Progress: Johnson & Johnson's new biomarker analyses from the Phase 2 DAHLIAS trial indicate that 163 Sjogren's disease patients showed a 62.5% improvement in ClinESSDAI scores at week 24, significantly higher than the overall patient population's 51.9% improvement, suggesting stronger efficacy in specific patient groups.
- Drug Development Background: Nipocalimab is an immunoselective treatment targeting the neonatal Fc receptor, designed to reduce IgG antibodies driving autoimmune diseases, and has received Fast Track and Breakthrough designations from the FDA, highlighting its potential in treating Sjogren's disease.
- Patient Impact: Sjogren's disease is a chronic autoimmune condition affecting over four million people, with women being nine times more likely to be affected, leading to decreased quality of life and functional capacity, making Nipocalimab's research a beacon of hope for this demographic.
- Future Research Directions: Johnson & Johnson plans to leverage the biomarker data to advance Nipocalimab in the ongoing Phase 3 DAFFODIL trial, aiming to provide more effective treatment options for the systemic management of Sjogren's disease.
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