Timothy Leary is dead, but he could be on the outside looking in with a smile on his face as U.S. President Donald Trump’s latest executive order (EO) fuels a surge in investment in companies researching and developing psychedelic drugs to treat mental health issues. The EO resulted in share prices of those companies reaching highs this morning ranging from 9% to more than 62% above Friday’s closing. But the bigger indicator of interest may be in the trading volume, which soared 79% to 600% above the companies’ averages. “We have long believed that the psychedelic space will reach a tipping point this year,” RBC Capital Markets’ Brian Abrahams said, citing trials moving through phase III, with approvals and launches expected to ensue. “The EO this weekend is likely to continue accelerating those tailwinds,” he added.

Psychedelic drug developers’ heyday may be near

With recognition at the federal level and a spate of recent deals to validate the approach, the makers of psychedelic therapies seem to be achieving long-sought respectability. At the end of March, Otsuka Pharmaceutical Co. Ltd. took in-house a neuroplastogen approach to posttraumatic stress disorder by way of the $1.22 billion acquisition of Transcend Therapeutics Inc. Other industry tie-ups have been made lately, too, and Oppenheimer analyst Jay Olson in an April 5 report pointed to “a trend of demand for transformative approaches to neuropsychiatry” such as those tried by companies with approaches to varied indications.

Lilly taking over CAR T-focused Kelonia in potential $7 billion deal

Eli Lilly and Co. is buying Boston-based Kelonia Therapeutics Inc. for as much as $7 billion in cash, including an up-front payment of $3.25 billion, with the rest coming if clinical, regulatory, and commercial goals are reached. CAR T specialist Kelonia brings to Lilly, of Indianapolis, an in vivo gene placement system that deploys lentiviral-based particles that can selectively enter T cells. The lead program, KLN-1010, has reached the phase I stage. It’s a one-time intravenous gene therapy that generates anti-B-cell maturation antigen (BCMA) CAR T cells, targeting the BCMA protein expressed on the surface of cells in multiple myeloma. Early findings were offered at last year’s American Society of Hematology meeting in Orlando, Fla.

Novo’s Forma buyout pays off with potential Pyrukynd competitor

Novo Nordisk A/S reported top-line results from the phase III Hibiscus study of its pyruvate kinase-R (PKR) activator, etavopivat, which was acquired through the 2022 buyout of Forma Therapeutics Holdings Inc. The drug reduced the annualized rate of vaso-occlusive crises by 27% compared to placebo in adults and adolescents with sickle cell disease while also increasing the percentage of patients whose hemoglobin reached greater than 1g/dL. If approved, etavopivat would compete with PKR activator Pyrukynd (mitapivat) from Agios Pharmaceuticals Inc. Shares of Agios (NASDAQ:AGIO) were down $8.81, or 25%, to $26.33 in early afternoon trading.

AACR 2026: Whole genome sequencing unveils blood cancer trajectory

A new study tracking the genomic evolution of chronic myeloproliferative neoplasms (MPNs), has shown that progression to myelofibrosis or acute myeloid leukemia is encoded in mutations that occur years before the transformation is clinically evident. By cross referencing whole genome and targeted DNA sequences of blood cell samples from 30 MPN patients with 7,986 blood counts and long-running clinical histories, it was possible to detect distinct patterns of gene expression that distinguished stable from progressive disease. The research was published April 20 in the journal Cancer Discovery, and presented at the American Association for Cancer Research meeting in San Diego.

AACR 2026: Xuanzhu shares dip despite phase III ALK inhibitor data

Xuanzhu Biopharmaceutical Co. Ltd. reported positive data from a local phase III study of dirozalkib (Xuan Fei Ning), an ALK inhibitor approved in China to treat patients with advanced non-small-cell lung cancer. Company shares (HKEX:2575), however, slid 7.21% on April 20 to close at HK$31.14 (US$3.98). Dirozalkib showed significant efficacy benefits against a first-generation ALK inhibitor, crizotinib (Xalkori, Pfizer Inc.), in a China-based multicenter randomized open-label phase III Diamond-2 study with 275 subjects. The data were presented at the 2026 American Association for Cancer Research in San Diego.

Medtronic leads $100M financing round for Pulnovo

Pulnovo Medical Ltd. secured $100 million in a financing round led by Medtronic plc for its pulmonary artery denervation (PADN) system to treat pulmonary hypertension. The funds will be used to support ongoing clinical development, pursue global regulatory approvals and expand commercial operations. Medtronic and Pulnovo also entered into an agreement that contemplates potential future commercialization opportunities.

Targeted therapies dominate March’s four NME approvals

The U.S. FDA cleared four new molecular entities (NMEs) in March, out of 19 drug approvals in the month. The four NMEs highlight a continued shift toward targeted therapies in rare and specialty indications, such as Denali Therapeutics Inc.’s Avlayah (tividenofusp alfa) for Hunter syndrome.

Mabwell turns to Hong Kong to fund ADC ambitions

Following its 2022 debut on Shanghai’s STAR Market, Mabwell (Shanghai) Bioscience Co. Ltd. is aiming to raise up to HK$1.44 billion (US$184.78 million) in an IPO on the Hong Kong Stock Exchange to advance its Nectin4-targeting antibody-drug conjugate (ADC) 9MW-2821 (bulumtatug fuvedotin). Shanghai-based Mabwell is the first Chinese company to enter the clinic with a Nectin4-targeting ADC, and 9MW-2821 is the first of its kind to show clinical efficacy across cervical, esophageal and breast cancers, the company said.

Also in the news

Allogene, Alloy, Alterity, Aneuvo, Arcellx, Corify Care, Deephealth, Enveric, GE, Gilead, Intelligent Bio Solutions, JATT II, Kerecis, Kura, Leo, Marengo, Merck, Neurona, Orasure, Orthogon, Prelude, Radnet, Rapid Medical, Samsung Biologics, Spyre, Trevi, Tyra, UCB, Ultima Genomics, Ultralight, Vaxart, Zimmer