With the first public hearing on CBD’s by the FDA, there was a sharp fall in the prices of cannabis companies’ stocks. The company Canopy Growth saw a fall of 4.6% in its shares, Cronos Group’s stocks fell by 5.5%, while Aurora Cannabis sank down by 5%, Tilary by 2.8%.
The Risks Of CBD Not To Be Overlooked
The hearing would invite public opinion starting July 2nd. They are still researching the safety of allowing CBD in food products. This is a lengthy process and implantation seems to be a long road ahead. CBD, a non-psychoactive compound, helps in relaxing body without causing any high. The medicinal benefits include curing inflammation, anxiety, etc. With such therapeutic benefits, medicinal CBD has also been made available for consumption by pets. However, not many of these claims are backed by definite researches or results.
The medicinal benefits cannot overshadow the risks of using such drug compounds in food and beverage products, says Ned Sharpless, the FDA’s acting commissioner. The sudden demand surge cannot be met with little to no knowledge of the effect of CBD-infused products. This would be the first time allowing a drug into the dietary habits of the public in general. The legalization of hemp had caused widespread confusion regarding CBD’s legal status (CBD can be derived from both cannabis as well as hemp). The then commissioner of FDA said that the agency would look into the confusion and come up with regulations surrounding CBD.
The sudden explosion in CBD demand made cannabis companies rush to offer new CBD infused products. Take, for example, Canopy Growth, which bought over a London based skin care company named This Works for $55 million cash, causing the stock’s price to shoot up. The plan is to provide increased CBD products and expand its customer base. To strengthen this cause, the firm also occupied a New York facility in order to set up a hemp-production plant.
Level brands, a marketing firm, is also planning to launch CBD supplements under Health and Wellness brand. Tiraly, on the other hand, is on its way to retail CBD based beauty and health products.