Cannabis Industry Not Worried by Federal Pushback

02:56 08/07/2018

According to recent data published by Arcview Market Research in partnership with BDS Analytics, the United States' legal cannabis market is projected to reach USD 11 Billion in consumer spending in 2018, then hit over USD 23 Billion by 2022.

The data indicates that despite the Federal prohibition, the U.S. legal cannabis industry experienced 31% growth in 2017 as it reached USD 8.5 Billion. Arcview estimates that the continuing state-by-state roll-out of medical-use programs and adult-use (recreational) legalization, will bring nationwide spending in the U.S. to USD 23.4 Billion in 2022 all while growing at a 22% compound annual growth rate over that five-year forecast period.

The cannabis industry is becoming highly competitive as businesses are exploring strategies to stand out from among the crowd. Lowering energy costs can be one factor to focus on. "Data is the basis to any business' ability to optimize, if not to measure efficiency and profitability. In the cannabis industry, where electricity is the second highest expenditure in a cultivation operation, lowering energy costs can make the difference in whether a business survives in this increasingly competitive environment. Wholesale pricing has now dropped by over 50% in most key markets across the United States; having the ability to manage cost could not be more timely for both new and existing businesses touching the plant," said Giadha Aguirre De Carcer, New Frontier Data CEO and Founder.

Two stocks in the cannabis arena with recent news are:

Tilray Inc. (NASDAQ:TLRY) TLRY  is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids currently serving tens of thousands of patients in ten countries spanning five continents. The Company recently announced that a study featuring Tilray 2:100, a medical cannabis oil containing high amounts of cannabidiol (CBD) and conservative amounts of tetrahydrocannabinol (THC), has shown promising results for children with drug-resistant epilepsy (DRE) due to Dravet Syndrome. The findings of the Phase II trial, which was designed and conducted by researchers at The Hospital for Sick Children in Toronto (SickKids), were published today in the peer-reviewed medical journal Annals of Clinical and Translational Neurology. Tilray 2:100 contains the highest concentration of cannabis-extracted CBD in a medical cannabis product available through Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR). Tilray 2:100 has a target concentration of 100mg/ml CBD and 2mg/ml THC for a total cannabinoid amount of 4,000mg CBD and 80mg THC in each 40ml bottle. As the first study of its kind to examine with rigor the dosing and tolerability of a mixed cannabinoid product containing both CBD and THC in children with DRE due to Dravet Syndrome, these results set the foundation for further work to advance successful treatment and outcomes for this population of children who until now, had little hope for better health outcomes.

Zynerba Pharmaceuticals Inc. (NASDAQ:ZYNE) ZYNE  is the leader in pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders. The Company recently reported its financial results for the second quarter ended June 30th, 2018 and provided an overview of recent operational highlights. As of June 30th, 2018, cash and cash equivalents were USD 43.1 Million, compared to USD 52.1 Million as of March 31, 2018. Research and development expenses for the second quarter of 2018 were USD 8.5 Million, including stock-based compensation of USD 0.8 Million. General and administrative expenses for the second quarter of 2018 were USD 3.4 Million, including stock-based compensation expense of USD 1.0 Million. Net loss for the second quarter of 2018 was USD 12.0 Million with basic and diluted net loss per share of USD (0.89). The Company initiated and is currently enrolling patients in CONNECT-FX (Clinical study of Cannabidiol (CBD) in Children and Adolescents with Fragile X), a pivotal, multi-national, randomized, double-blind, placebo-controlled study evaluating the efficacy and safety of ZYN002 in three to 17-year old FXS patients with full mutation of the FMR1 gene.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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