COMPASS Pathways plc (CMPS) saw its stock price surge 9.20% in pre-market trading, continuing a significant rally for the psychedelic medicine developer.

The sharp increase follows an executive order signed by President Donald Trump aimed at opening up access to psychedelic treatments for mental illnesses. The order includes $50 million in research funding and regulatory changes to expedite the approval process for these therapies. Specifically, it allows companies with breakthrough-therapy designations to receive vouchers that speed up regulatory review, which applies to COMPASS Pathways' psilocybin treatment for treatment-resistant depression.

Analysts view the executive order as substantially reducing regulatory risk for psychedelic therapies, with RBC Capital Markets noting it represents "a substantial step towards diminishing regulatory risk in this emerging class of therapies." The order also enables patient access through the Right to Try Act and calls for rapid rescheduling of Schedule 1 drugs that complete Phase 3 trials for mental illness treatments.