Can These Canna-Pharma Pot Stocks Make Headway in September?
Pharmaceutical marijuana stocks have been making big headway in the cannabis industry for quite some time. While they may not be as popular as some other pot stocks like Cresco Labs Inc. (OTC:CRLBF) or Charlotte’s Web Holdings Inc. (OTC:CWBHF), they do present opportunity in a specific market. One of the advantages to pharmaceutical pot stocks is that they often are less volatile than pure play cannabis stocks. Companies like Cronos Group Inc. (NASDAQ:CRON), have large ties to the cannabis industry, and therefore are the most volatile.
But, pharmaceutical pot stocks usually have other business outside of the cannabis industry. This means that they have exposure to cannabis, but not enough to make them a pure play company. With that in mind, these companies are subject to volatility in terms of speculation. When any news breaks about a given drug or company, Pharma-pot stocks can see wild price swings. This is not uncommon, but it should be considered before investing. With that in mind, here are two pharmaceutical marijuana stocks that could be ripe with potential.
The Most Popular Pharmaceutical Marijuana Stock
GW Pharmaceuticals Inc. (NASDAQ:GWPH) is one of the leading cannabis pharmaceutical companies. In early August of this year, GWPH stock rose following an announcement about the FDA approval of its drug Epidiolex. Epidiolex is used to treat several rare seizure disorders including Lennox-Gastaut syndrome and Tuberous Sclerosis. In its most recent second quarter, GWPH stock posted revenue of around $111 million. This is due mostly to the sales of Epidiolex. Worldwide, there are currently 50,000 patients who could utilize Epidiolex to treat their respective disorders.
This means that aside from the drug being able to help people, sales may remain strong in the foreseeable future. In addition to Epidiolex, many investors believe that GWPH stock could have solid long term potential. A lot of this depends on one; sales of Epidiolex, and two; whether or not it produces new drugs for sale. In addition, growth for the company depends greatly on whether or not it will receive FDA approval for new drugs it produces. With a strong market position, GW Pharmaceuticals remains an incredibly interesting pot stock to watch.
A Less Popular Pharmaceutical Pot Stock to Watch
AbbVie Inc. (NYSE:ABBV) is another popular pharmaceutical pot stock, but one that is not as popular as GWPH. As of late 2019, ABBV stock was gaining due to the company’s 59 medical cannabis patents. Currently, AbbVie remains the largest holder of medicinal marijuana patents in the world. Although it is not a producer of cannabis, its role in the cannabis industry puts it in the category of marijuana stocks.
The company has worked on the production and sale of Marinol, which is a drug used to treat nausea in those undergoing cancer treatment. Because of the success of this drug, ABBV stock has seen a great deal of attention in the past year or so. But as usual, ABBV stock can be quite volatile due to its position in the cannabis industry. Similar to GWPH stock, AbbVie has a shot at growth if it can continue to produce new drugs for sale in the market. If it only continues its sales of Marinol, it should remain in good shape for the foreseeable future. With that in mind investors should continue to keep a close eye on AbbVie Inc.