Over the last two years, there have been a number of reports released which discuss the medical benefits of cannabidiol (CBD), which is non-psychoactive cannabinoid found in the cannabis plant. Researchers have identified at least 85 active cannabinoids in cannabis and CBD accounts for up to 40% of the plant’s extract. CBD is considered to have a wider scope of medical applications than tetrahydrocannabinol (THC).
Even though there are known medical applications associated with CBD, cannabis is classified as a Schedule I substance under the Controlled Substance Act. Schedule I substances are those that meet the following criteria:
- The drug or substance has a high potential for abuse.
- The drug or substance has no currently accepted medical use in treatment in the United States.
- There is a lack of accepted safety for use of the drug or substance under medical supervision
Medical benefits of cannabidiol
Research has shown that cannabis has medical benefits. GW Pharmaceutical (GWPH: NASDAQ) manufactures the first cannabis-derived prescription drug that is sold in over 25 countries! Some of CBD’s medical applications are:
- Inhibits cancel cell growth
- Promotes bone growth
- Reduces seizures and convulsions
- Relives pain
- Relieves anxiety
- Reduces vomiting and nausea
- Suppresses muscle spasms
- Slows bacterial growth
Increased demand for cannabidiol (CBD)
The DEA’s initial 2015 aggregate production quota for marijuana was 125,000 grams. In April 2015, the DEA proposed an increase for marijuana’s production quota. The agency proposed increasing the quota to 400,000 grams. The DEA said the increase was due to increased demand for cannabidiol (CBD), a non-euphoric chemical found in marijuana.
The DEA has not only received increased demand from companies who want to research cannabis. The agency also received increased demand from the National Institute on Drug Abuse (NIDA).
In mid-June, in a Federal Register posting, the DEA said it will further increase the production quota for marijuana to 658,000 grams.
Authored By: Michael Berger
Michael Berger is the president and founder of Technical420, an independent research firm focused specifically on the cannabis sector. He was working for the equity research department at Raymond James Financial Inc., when he recognized a need for a service that provides up-to-date research and analysis on companies that operate in the cannabis industry. Mr. Berger studied finance and economics at Florida State University and is working toward achieving his CFA charter.
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