Medipure: Shaping the Future of Medical Marijuana

Medipure Pharmaceuticals Inc., based in Vancouver, Canada is emerging as the next big player in the medical marijuana industry.

So much so, that investors are closely eyeing the Canadian political scene for upcoming legislation changes in July 2018.  It’s expected that July will mark the official legalization of marijuana for recreational use in Canada, and this will likely make a good deal of progress in making the road less bumpy for increased access to cannabis for therapeutic purposes.

While cannabinoids are found in a handful of existing medicines around the world, Medipure is working on a full spectrum of valuable medicinal uses. Areas of current focus include post-traumatic stress disorder (PTSD), Anxiety and mood disorders, persistent dermatological conditions like psoriasis and dermatitis and of course, medical marijuana as a relief from pain.

Already in the early clinical trials, the company has three very promising products that could make big waves in the industry as cannabis companies have already shown impressive growth over the last year.

Pain Relief and Management

Pain relief is, by far, the biggest medicinal market in the world — and for good reason. It can strike anybody. Pain can be a symptom of a disease, such as arthritis. In many cases, it’s the result of an aggressive treatment, such as chemotherapy. Then there are the random, unexpected accidents and injuries that can start a lifelong battle of pain management for the patient.  The list is almost endless.

The debilitating nature of enduring pain makes it difficult for patients to function normally. Unfortunately, many widely prescribed medications are also addictive, like those derived from opioids, making their use a double-edged sword. While they are prescribed because they are highly effective, many patients, as well as the medical community at large, fear possible addiction.

Medipure’s cannabis-derived MP-10X formulation is currently in clinical trials to assess the effectiveness it has on pain reduction for cancer patients. Absorbed beneath the tongue to reduce the risk of nausea and vomiting, the early trials are well underway. Success in this area could be expanded to include pain management for other chronic and acute conditions as well.

PTSD and Anxiety

Supporters of legalized marijuana have often touted the naturally calming effects of the drug. For several years, scientists and medical professionals have put this claim to the test, on a deeper, psychological level.

Post Traumatic Stress Disorder, which has only gained proper recognition in recent years, is the result of extreme emotional trauma. Such a disorder is often associated with post-combat soldiers, but it also has devastating effects on victims of long-term child and spousal abuse and sexual assault victims.

Any person who has been overwhelmed by fear in a situation they cannot control, could be at risk for PTSD. First responders and police officers are just as vulnerable to developing PTSD as the victims of violent crimes. Natural disasters, acts of terror, war and shocking accidents are among some of the root causes.

PTSD is accentuated by recurring nightmares and continual reliving of the traumatizing events. Traditionally, PTSD treatment has turned to anti-anxiety medications, for the similar effect they have on persons suffering from Anxiety disorders.

However, the cannabinoids extracted from marijuana has shown success in reducing the painful nightmares and other symptoms. It’s also been used in low doses to help treat recurring anxiety by acting as an anti-stimulant.

Encouraged by existing findings, Medipure is studying the effects of MP-20X to help ease the stress and anxiety that overcome many cancer patients. The development of cannabis based treatments will offer patients more than just a therapeutic remedy, but a chance to feel empowered by their medication rather than dependant on it.

Many patients with mood disorders suffer from a dual diagnosis of addiction to alcohol or street drugs in their attempts to self-medicate and ease their emotional burden. However, one patient in the United States, diagnosed with both depression and anxiety, chose to switch to medical marijuana after years of feeling “like a human guinea pig” according to Psychology Today.

Not only was it successful to improve her outlook and ability to have a life, but it helped greatly relieve the heavy withdrawal symptoms associated with her previous medications, particularly nausea and vomiting.  These types of results have been fairly common in the industry research, indicating widespread efficiency levels in the ability of cannabinoids to treat major illnesses.

The demand for proactive treatments for mood disorders is at its peak. With an estimated 21.4% of American adults experiencing a mood disorder during adulthood, company’s like Medipure are heeding the call with resourceful solutions utilizing cannabis-derived treatments to ease the symptoms without the danger of toxicity or addiction.

Dermatological Applications

Eczema (Atopic Dermatitis) and Psoriasis are chronic conditions, and have a wide-reaching range. An estimated 20% of American children have Eczema, while, Psoriasis afflicts about 125 million people around the world.

These skin conditions have comparable symptoms, like red, scaly skin. Eczema tends to be itchier, so much to the point a person can scratch themselves into bleeding while asleep. Psoriasis on the other hand, reports burning type sensations.

Both ailments are traditionally treated with topical steroids, which are effective, but come with health risks. Long term use of topical steroids leads to skin atrophy, a thinning of the skin making it more vulnerable to bruising, cuts and so forth. With skin atrophy, the underlying bones, blood and tissue can become noticeable.

Other side effects include fluid retention, particularly in the legs, high blood pressure and weakened and thinning bones. As well, the risk of exposure to others through general contact is more prevalent with any topical medication, putting other family members at risk.

Pharmaceutical Priority

With Dermatitis and Psoriasis being the most widespread dermatological conditions, eliminating the use of steroids for treatments has become a huge priority in the pharmaceutical community. Already, there are hundreds, if not thousands of products on the market, using natural ingredients such as colloidal oatmeal to combat the excessive dryness and dehydration of the affected skin.

Cannabis, particularly hemp seed oil, as a topical treatment, has shown impressive results in not just reducing the conditions of several skin conditions but also making the skin stronger and more resilient.

Following this promising lead, Medipure hopes to get strong results from trials of its own dermatological formula, MP-30X. While there is no cure for either Eczema or Psoriasis, the company is dedicated to providing effective treatment, without the long-term consequences of steroid use.

All eyes will be on Medipure Pharmaceuticals Inc. and its ongoing commitment to provide patients with safe endocannabinoid based treatments that will improve their overall quality of life. While the marijuana plant slowly loses its unwarranted taboo, this company is set to become leaders in the therapeutic use of endocannabinoid medications.

For more information, visit Medipure Pharmaceuticals.

 

 

 

 

 

Paraguay Puts Medicinal Hemp Oil into Practice

Paraguay Puts Medicinal Hemp Oil into Practice

For the 6.7 million people living in Paraguay, the professional medical community can now prescribe a cannabis derived medication, Real Scientific Hemp Oil-X (RSHO-X) and Blue Label (RSHO) should the patient need it.

And best of all, it’s completely legal.

In a country that has long been embattled in trying to prevent the growth and distribution of illegal marijuana, this action is significant and most definitely not one that will be overlooked by the watching world.

Like so many other countries, Paraguay has struggled to adopt some sort of reasonable and effective stance when it comes to marijuana. Long considered an illegal recreational drug, it has been a source of criminal activity for decades. However, that does not diminish the practical medical applications that are unique to the marijuana plant.

Under the watchful eye and careful control of the country’s health ministry, Ministerio de Salud Publica v Bienestar Social, MSPBS, (Ministry of Public Health and Social Welfare), recognized medical distribution companies in the country will be allowed to offer the organic cannabis product to patients who have a warranted need for it.

5-year Price Chart: Medical Marijuana, Inc. (MJNA)

RSHO and RSHO-X have both been registered with the Paraguay government, allowing them to be distributed as medicine in the country. Medical Marijuana Inc. (OTCMKTS:MJNA), the company behind this groundbreaking deal is well known as the first publicly traded cannabis company in the United States of America.

Paraguay has held the unfortunate reputation for many decades as the largest grower of illegal marijuana in South America, and second in the world just behind Mexico. In a report put forth by the United Nations in 2011, Paraguay was credited as supplying a whopping 15% of the world’s supply of marijuana.

For a country that is fully embroiled in the war against marijuana cultivation and trafficking, the transition to recognizing the potential benefits can be a jagged pill to swallow.

RSHO and RSHO-X

In other countries, governments leaders are feeling the pressure from the medical community as well as their citizens to rethink whether or not cannabis is criminal. Meanwhile, Paraguay is contending with an estimated 10,000 to 60,000 tons of marijuana being harvested inside its borders each year. It’s little wonder that farmers of legal crops find themselves planting marijuana, purely for economic reasons.

Despite these overwhelming problems, or possibly because of them, the ninth most populated country in South America has somehow managed to take some small steps in recognizing that not all weed is bad weed.

Marijuana was taken off the dangerous substance list and an allowance was made for possession of up to 10 grams for personal use. Still, neither of these are quite as significant as allowing a cannabis-based drug into the country for legal distribution and use for medical purposes.

While the term medicinal marijuana is dropped into many conversations, protests and arguments, there are only small derivatives of the plant being purposed for pharmaceutical use.

Flag of Paraguay

The marijuana plant, as a whole is not likely to be approved for medical use any time soon. However, the plant contains chemicals called cannabinoids, over a hundred different types of cannabinoids as a matter of fact.

Cannabinoids are also part of the human body’s chemical makeup, participating in such cognitive functions as time perception, memory and thinking, but also contributing to the use of senses; sight, sound, taste, touch and smell, not to mention appetite and pain control.

So, a plant that produces so many different cannabinoids can definitely play a role in the care and treatment of the body. Cannabidiol (CBD) and tetrahydrocannabinol (THC) are two of the chemical properties taken from the marijuana plant to be used for medical treatment. THC is the part of the marijuana plant that leaves people feeling euphoric or high, thanks to its psychotropic properties.

CBD is less exciting for recreational users as it doesn’t have any of the feel good, mind-altering properties, but it does provide relief from pain, inflammation as well as reduces seizures associated with diseases like epilepsy.

The three approved medicines on the world market using these cannabinoids are Sativex (containing both THC & CBD) and Epidiolex (containing CBD). RSHO and RSHO-X have the distinction of offering the full spectrum benefits of Real Scientific Hemp Oil, but with two formulas, one with CBD and THC and the X version, that eliminates the THC.

The significance of Paraguay putting a medicinal hemp oil into the hands of practitioners is a benefit to the many patients who had previously been denied such resources. In a country with obviously jaded views about marijuana, the recognition and inclusion of the medical use of marijuana is a gateway for other countries to give up unwarranted opposition to a plant that provides many opportunities for enhancing treatment, well being and quality of care.

Stock Finance: Massive Upside Seen In Cure Pharma Shares

Stock Finance: Massive Upside Seen In Cure Pharma Shares

Stock markets are headed toward their newest record highs in the S&P 500 and Dow Jones Industrials, and economic news has been great if you are a long-term investor with exposure to the equities benchmarks.  But if you are an investor that looking for true growth potential, your task is much more difficult.  This is why industry selections within your portfolio allocations are important now more than ever, and this means a more creative approach is warranted with stock markets at these levels.

When looking to identify industry sectors capable of sustainable growth, there are not many options that have the potential to surpass forecasts that have been made with respect to the entrance of medical cannabis into the world of pharmaceutical treatments.  

Impact of Recent FDA Warnings

Recently, there have been media stories highlighting FDA warnings for companies to stop making unproven claims that marijuana has the capability of curing cancer, saying that they will not allow “companies to market products that deliberately prey on sick people with baseless claims that their substance can shrink or cure cancer.”  Furthermore, the reports have gone on to say that the FDA is “not going to look the other way on enforcing these principles when it comes to marijuana-containing products.”

Stock Standouts in the Sector: Cure Pharmaceutical

On the surface, this might look like a negative for investors with heavy exposure in the medical marijuana industry.  But the latest declines in prices really allow new buying opportunities to unfold if you are looking to build stock exposure at current levels.  One of the most interesting names in the space is Cure Pharmaceutical Corp. (OTCMKTS: CURR), which has made significant advancements in its product pipeline as a means for identifying the true capabilities of cannabinoids in treating various forms of cancer.

Stock valuations in CURR are currently trading -75% below its 52-week highs, marking a steep discount in what is thought by many to be a broadly overvalued market.  The S&P 500 has already made gains of roughly +20% this year, and so the extended valuations in the broader market do not support the argument for new buy positions.  So when we add this to the fact that key players in the emerging marijuana sector are trading at significant discounts, there is a strong possibility for substantial upside when gaining stock exposure at current levels.

The current trends could reverse sharply, however, once the FDA realizes the breadth of research that has been done to suggest strong efficacies in the use of cannabis in treating cancer.  In a collaboration with the Technion Israel Institute of Technology, the strategic course taken by Cure Pharma lies in researching the ways different cannabinoid compounds can be used to treat various subtypes of cancer.  With this research, the two companies will offers ways to predict how to match a cancer subtype with an effective cannabis extract (to optimize treatment).

With these efforts, Cure Pharmaceutical has the chance to clarify the antitumor effects of phytocannabinoids and terpenes on various cancer-driving mutations and pathways, as well as further revealing the mechanisms of the cannabinoid-mediated antitumor effects. This will allow the identification of new drug candidates as well as create the ability to optimize cannabis treatment options for patients, furthering efforts toward the creation of personalized medicine.

Cure’s Industry Diversity and Product Innovations

Another important factor is that Cure Pharmaceutical has developed innovative product technologies that will likely have a significant impact on the way most people consumer medicine.   The broad diversity within the company can be seen with its proprietary dosage and delivery systems known as CureFilm™.  Drug compliance is one of the most problematic issues facing biotech companies today, and CureFilm™ can be applied to a broad range of molecules to improve drug efficacy, safety and the overall patient experience.  Cure aims at targeting new chemical entities and marketed drugs from traditional pharmaceutical actives to emerging cannabinoid molecules.  Cure’s delivery systems can offer unique strategic advantages — and with the stock price trading at extremely cheap levels, it appears as though the upside for investors could be quite substantial.  

Cure Pharma has proven its commitment to commercializing innovative therapies that address significant clinical unmet needs, and this points to an undervalued company when viewing the stock on its price charts. For investors, this is a story that is unlikely to fade from the headlines any time soon.  While the FDA is telling companies to stop saying that cannabis can adequately treat (or even cure) cancer, there are innovative biotechs that are now capable of proving otherwise.  Once these trends start to become more apparent, industry innovators like Cure Pharma could see significant rallies in their share prices.

MJNA: Set To Unlock Value For Shareholders

MJNA: Set To Unlock Value For Shareholders

Medical marijuana is among the fastest growing industries in the U.S., and what is even more interesting for investors is the fact that these trends are showing no signs of slowing down anytime soon.  Over the next few year s, many more states are expected to legalize (or consider legalization) of recreational marijuana.  Rising demand, and improved technology in the growing and production of marijuana is now being conducted at an industrial scale. Retail sales are expected to hit $30 billion by 2021, and the legal U.S. marijuana industry (including both medical and recreational) was already worth over $7 billion in 2016.

For investors, this creates some interesting questions as marijuana stocks in some regions have doubled in value over the last year.  In just the last month, shares of Canada’s largest licensed marijuana producer have gained 30%.  For the same period, the Canadian Marijuana Index gained about 26% after the government announced plans to further boost the industry.  But these gains have not translated to all stocks in the U.S. markets, and this suggests that it may be time to start buying into these companies while they are trading at these lower levels.  One undervalued stock to watch is Medical Marijuana, Inc. (OTCMKTS:MJNA), which is one of the best-positioned companies in the sector.

Riding High on Subsidiary Successes

Unlike many other marijuana companies that focus on developing few products or a handful of cannabinoid-based drugs, MJNA is a holding company with investment in several cannabidiol product companies.  Its largest strength is its portfolio diversity. Thanks to its investment in subsidiaries like HempMeds, KannaLife Sciences and Axim Biotechnologies, it enjoys access to retail CBD product sales.

MJNA, which is the first-ever publicly traded cannabis company in the U.S., had its largest-ever revenue month in July of 2017. The milestone was backed by strong sales from subsidiaries such as HempMeds Mexico and Kannaway.  “MJNA is on track for a banner year in terms of gross sales revenue figures,” CEO Dr. Stuart Titus said in August.

Kannaway, which offers cannabidiol (CBD) hemp botanical products, is performing exceedingly well, and is contributing significantly to MJNA’s revenue. “We look forward to setting new revenue performance records as our company continues to grow and enter new markets. We are especially excited about Kannaway’s European expansion set for Q4, 2017,” Kannaway CEO Blake Schroeder while announcing the milestone in August.

Growth Trends

Since March 2016, Kannaway has witnessed incredible growth. It was the same time, when it officially started its relaunch in expanding into new CBD oil and lifestyle products. Since then, the company has appointed numerous brand ambassadors and has achieved results numbers that equal almost 25 times growth. The company even hired Justin Stephens as its new Director of Member Support to see that its brand ambassadors get high-quality experiences, and the results can be seen in the numbers. It wouldn’t be wrong to say that, for Kannway, its brand ambassadors are its backbone and a supportive factor behind the company’s accelerating success.

Further, MJNA has worked really hard to completely turn around the company, to include the creation of an Advisory Board. This Advisory Board has helped the company in improving almost all of its operations (i.e. stock investment programs, brand recognition strategies, order entry flow, promotional events, company messages to the public, product innovations, compensation plans, and website outreach.  Further, to promote the subsidiary and its products, MMJA has helped organize several events like the Red Carpet event in April this year in Long Island, NY. Previous events in San Diego, Phoenix and Denver were also a huge success.

Kannway has also initiated weekly webcasts and developed a cannabinoid education series of videos to popularize its products. To expand its target audience, the company also added Spanish support along with e-wallet options for commissions. Kannaway has grown from a small support staff to a professional team of industry experts, due in large part to internal changes at the company, new product launches, and expansions into new markets.  

Recently, the company has accelerated its efforts to expand in the European markets, which is an area of the globe that is often overlooked within the industry.  Last month, the company hosted several events in Europe with the main objective of introducing Kannaway to the region’s consumer base.  MNJA also has big investments in Axim Biotechnologies, which has a sizable pipeline. The company has a half-dozen products in the preclinical and clinical phases, and an approval here would mean access to a massive user-base of patients with illnesses like restless leg syndrome, dementia, multiple sclerosis, irritable bowel disorder, psoriasis, and glaucoma.

Further, MJNA recently announced that it would move forward with its efforts to expand in athletics. The World Anti-Doping Agency (WADA), which coordinate and monitor use of drugs in sports, has taken off cannabidiol (CBD) from its list of banned substances in 2018. According to Euromonitor International, sports nutrition market was worth $11 billion in 2015, and is expected to grow to $14 billion by 2019.

In addition, a recent move by the Lesotho government to grant Africa’s first official marijuana license, is another positive for the industry, which is already witnessing a rapid growth with no signs of slowing down. Apart from Africa, Canada may soon legalize recreational marijuana – the most promising offshoot of the legal marijuana industry. Also, the public perception towards marijuana has changed greatly in the past couple of decades. According to Gallup’s national poll, only 25% of respondents in mid-1990s wanted marijuana legalized nationally, compared to 60% in 2016. The higher the acceptability, higher are the chances that it is approved by the government.

Undervalued Stock Signals

Last year, MJNA enjoyed big gains but on a year-to-date basis, the stock is down over 65%.  These moves have taken some analysts by surprise given the strength of the industry, the diversity of MJNA’s product line and the stock’s massive discount to the company’s net asset value.  The current market capitalization of $207 million can be viewed alongside the company’s net asset value of $428.5 million to determine the true nature of the bullish outlook, as the opportunities for strong returns become more and more apparent.

It should also be remembered that, on the whole, marijuana stocks in some regions have been under significant selling pressure.  Political obstacles from the Trump administration explain some of these trends but the broader polling numbers throughout the country support the legalization of marijuana.  Rising concerns over the possibility that the Trump administration may not treat marijuana providers well is one reason for the pullback.  It must be noted that efforts of Trump Administration, even in theory, to curtail the industry would not the restrict the sales of Medical Marijuana products, which include cannabidiol (CBD) oils, as they come with ingredients that are excluded from the Controlled Substances Act.

MJNA Stock Outlook

A recent report by Brightfield Group suggests cannabidiol (CBD) will be a billion dollar market in about three years. In 2016, sales of CBD are estimated to have hit $170 million. MJNA is poised well to benefit from this and this creates a positively outlook for long investors at these levels.

The company is doing well when it comes to selling CBD hemp oil products, and the company selling those even to the government.  In August, the company announced that HempMeds Mexico, its Mexican subsidiary, entered into a purchase contract for CBD hemp oil products to the Mexican government. This was the first purchase by a Mexican government of the CBD products, and also the first sale by MJNA to a government.  The Mexican government purchased CBD hemp oil products to treat citizens for Lennox Gastaut-Syndrome and Refractory Epilepsy.

Revenue growth also indicates that the company is on uptrend, something that we believe is not yet reflected in the stock price. If we look at the past five quarters, the revenue growth has been on uptrend (except for one quarter). And, if we compare Q2 2017 with the same quarter last year, the revenue has grown by 229%. Further, revenue for the first half of 2017 compared to the same period last year was about 185%. These are some remarkable numbers.

Another number indicating that the stock is undervalued is its asset value. As of 30th June 2017, total assets value for MJNA was 428.42 million, which is well above its market cap (currently near $220 million). This shows that MJNA’s asset or its productive capacity is not yet reflecting in its market cap. This indicator is almost exclusive to MJNA. For instance, if you look other stocks like Insys Therapeutics Inc (NASDAQ:INSY), Canopy Growth (OTCMKTS:TWMJF), Cara Therapeutics (NASDAQ:CARA) and others, they all have a market cap that is greater than their respective asset value.  

Portfolio Diversity

Medical Marijuana’s portfolio diversity is another factor that should get investors excited about the stock. Such diversity, a rarity in the marijuana industry, allows the company access to retail CBD product sales along with an opportunity to benefit immensely if Axim’s and KannaLife’s cannabinoid-based products are approved in clinical trials. Axim’s lead product, a marijuana-based chewing gum, is currently in testing phase for the treatment of certain diseases. If the product succeeds in getting regulatory approval, it would unlock more value for those holding MJNA.

 

Cannabis Investors Report: Growth of the Medical Marijuana Industry

Cannabis Investors Report: Growth of the Medical Marijuana Industry

According to the 1961 United Nations Convention on Narcotic Drugs, cannabis is defined as the fruiting or flowering tops of the cannabis plant from which the resin has not been extracted. The term medical marijuana refers to the whole unprocessed marijuana plant or basic extracts, which is used to treat certain diseases and illness. 

At a global level, medical marijuana market size stood at USD 7.2 billion in 2016 and is projected to grow to USD 55.8 billion by 2025. More than 23,000 studies advertise the benefits of medical marijuana for those facing diseases from Alzheimer’s disease to diabetes to chronic pain, and cannabis is becoming conventional. Supported by an enormous body of scientific research, public opinion and progressive cannabis laws, cannabis is getting the status it deserves as a ground-breaking medical solution for various health problems.

Medical Marijuana Markets

Key players functional in the global medical marijuana industry are Teva Pharmaceuticals USA, Inc., Pfizer, Inc., CannaGrow Holdings, Inc., Novartis International AG, Canopy Growth Corporation, Inc., AbbVie, Inc, Insys Therapeutics, Inc. and GW Pharmaceuticals, plc, among others.

The medical marijuana market is undergoing growth due to increasing awareness regarding different medical applications such as pain appetite enhancement, management and reducing eye pressure.

Medical marijuana is broadly classified into two types, namely Cannabis indica and Cannabis Sativa which originate from the countries of the south Asian region, western hemisphere and central region. The number of countries which are authorizing the use of medical marijuana in several parts of this world is growing and is a key factor driving the use of cannabis in therapeutic applications.

More than 1.2 million people use medical marijuana for a variety of medical problems, from depression to cancer to epilepsy.  Retail sales for legal marijuana are growing so fast that the industry has to increase their operations. Producing and growing marijuana products are now happening on an industrial scale.

Reasons for Growth of the Medical Marijuana Industry

Investment deals are increasing in scope, size and frequency.  Investors who are unfamiliar with the cannabis market have traditionally been cautious to invest in an industry which is viewed as illegal by the federal government. While this is true for major institutional investors, groups of wealthy individuals and smaller firms are becoming increasingly interested in the cannabis industry.

For instance, in 2016, Tuatara Capital, the private equity firm raised a record amount for the marijuana industry – $93 million in investments for cannabis businesses. Investors who have already invested money into the cannabis industry are planning on investing capital into many marijuana businesses in 2017 compared to 2016 which shows the optimism of the investors regarding the marijuana industry.

Rising Marijuana sales in the US territory

US hold roughly 49% of the cannabis market share in the world. In 2017, it is expected that the overall marijuana sales in the United States at the retail level will grow roughly 30%, hitting USD 5.1 bn-USD 6.1 bn riding on the continued growth in existing (recreational) cannabis markets.

Recreational sales are expected to exceed medical in 2017. Sales in the Medical marijuana industry also are expected to sustain the industry, powered in part by the anticipated launch of MMJ markets in Hawaii and Maryland. Simultaneously, small medical marijuana initiatives in states such as Nevada, Illinois, and New York could post remarkable growth this year.

Mergers and Acquisitions in the Marijuana Industry

The increase in the number of mergers and acquisitions in the medical marijuana industry is one of the crucial attributes that is estimated to boost the industry over the coming years. Some of the current M&A activities in 2016 are as:

  • Gibraltar Industries acquired Nexus Corporation 
  • BioTrackTHC signed a partnership with Cannabase

Legalization of Cannabis

The increasing number of states authorizing medical marijuana and increasing demand for cannabis in recreational and medical applications is some of the essential factors that are likely to boost demand for medical marijuana over the impending years. The mounting research and development activities are also projected to drive the demand for medical cannabis.

Use of Cannabis for treating Chronic diseases

In 2016, chronic pain was the largest medical application segment due to the existence of a mammoth patient base. The increasing occurrence of chronic pain raises the demand for the drug, thus projected to increase the use of medical marijuana for chronic pain management.

Profitability

Despite the massive challenges and obstacles cannabis companies face, the underlying financials of most companies currently generating revenue are strong. About 75% of cannabis companies in all major sectors are at least breaking even, and an impressive 20% of businesses are earning massive profits.

Some additional reasons of note related to the growth of marijuana industry are:

  • Medical marijuana growers continue to benefit from the progressively aging population
  • A growth in per capita disposable income is anticipated to drive demand for cannabis industry products
  • The demand for cannabis in Asia Pacific market is expected to grow due to increased investment in demand and R&D for cannabis in chemotherapy
  • Due to greater consumer acceptance and demand, more companies have entered the cannabis industry

The increasing interest amongst the healthcare providers and academic researchers regarding the therapeutic uses of marijuana and the increasing social acceptance is among the significant factors, which is driving the marijuana market over the coming years.

 

Potential Trend Risks in Cannabis Investments

Stock opportunities for cannabis stocks remain to be on edge because numerous cannabis-derived products are still not widely accepted by health professionals.

One of the main reasons why investing in marijuana stocks is generally viewed to be a dreadful idea is the presence of risks and concerns and various allegations raised against some huge marijuana companies. Insys Therapeutics, in particular, is one of the two companies (the other one being Zynerba) that had gained poor market performance and had experienced loss in sales of about 38%.

At present, Insys Therapeutics is facing allegations about its product, Subsys. Subsys is a synthetic opioid and wasn’t even marketed only for cancer patients but also to health professionals prescribing medications for opioid.

Another thing is the presence of tougher laws to regulate marijuana in the Trump administration. Critics of marijuana expansion are also squashing any legalization idea of the government, making the process longer than usual.