Pandemic Fallout: 6 Mental Health Stocks To Watch

One of the most devastating long-term impacts of the COVID-19 pandemic may be the toll it has taken on people’s mental health. The next global health crisis may be related to mental health issues such as anxiety and depression, and companies that are focused on mental health could be well-positioned to capitalize on the opportunity.

Troubling Trends: In January 2021, the U.S. Census Bureau Household Pulse Survey found 41.1% of adults were suffering from symptoms of anxiety disorder and/or depressive disorder. That percentage was roughly quadruple the 11% of adults the NHIS found were suffering from similar symptoms in the first half of 2019.

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The pandemic fallout has been particularly harder on younger Americans, who struggled with school closures and loss of income. Among adults aged 18 to 24, 56% reported symptoms of anxiety and/or depressive disorder, while 25% report substance abuse and 26% report suicidal thoughts.

A recent CDC study found the number of emergency room visits for suspected suicide attempts among girls aged 12-17 were up 50.6% from Feb.21 through March 20, 2021 compared to the same period in 2019.

Investing In Mental Health: Mental health care provider Lifestance Health Group Inc LFST completed its IPO earlier in June. Its stock price has already surged from its $18 IPO price to above $28.

In May, Teladoc Health Inc TDOC launched myStrength Complete, an integrated mental health service.

“We believe the runway for employer-sponsored mental health programs is substantial and Teladoc is well positioned to capture a meaningful part of this market given its sizable paid membership base,” Bank of America analyst Allen Lutz said following the launch.

Psychedelics stocks have also become a popular way for investors to trade the rise of mental health wellness and treatment. Mind Medicine (MindMed) Inc MNMD and COMPASS Pathways PLC CMPS are among the few psychedelics stocks listed on major U.S. exchanges that are currently researching mental health treatment.

Intra-Cellular Therapies Inc ITCI produces Caplyta, an FDA-approved treatment for schizophrenia. ITCI is also testing the drug for treating bipolar depression, and it has several other drug candidates in its pipeline focused on depression, dementia and even opioid addiction.

Finally, Acadia Healthcare Company Inc ACHC is a behavioral health company that operates residential treatment centers, psych hospitals, outpatient clinics and therapeutic school-based programs. The company runs nearly 600 behavioral health care facilities in 40 U.S. states, as well as the U.K. and Puerto Rico.

Benzinga’s Take: One of the biggest investment themes of 2020 was COVID-19 vaccine stocks. Unfortunately, while the vaccines have made tremendous strides in containing the virus, the battle against the mental health fallout from the pandemic is likely just getting started.