COMPASS Pathways plc (CMPS) saw its stock price soar 5.03% during intraday trading on Friday. The significant move aligns with broader gains in the psychedelic drug development sector.

The surge follows major regulatory developments. The U.S. Food and Drug Administration announced actions to speed up the development of new treatments for serious mental illness, building on a recent presidential executive order. The agency is issuing special priority vouchers to companies developing psychedelic treatments and plans to release final guidance for sponsors.

Specifically for COMPASS Pathways, the FDA granted the company's rolling review request for its new drug application and selected its COMP360 drug candidate for the Commissioner's National Priority Voucher program for treatment-resistant depression. This program provides benefits including enhanced communications and a shortened 1-2 month review time after NDA filing. Concurrently, analyst firm B. Riley initiated coverage of the company with a Buy rating and a $17 price target, citing its progress toward developing the first FDA-approved psychedelic treatment for depression.