The cannabis market once again saw its stocks rise as the DEA completed its latest round of approvals for a cannabis based seizure-drug. The industry on pharmaceuticals within the cannabis space have become some of the most important to the market as they present an alternative way to invest and see the space grow.
Cannabis stocks continued to rise this Thursday after mid-day when the U.S. Drug Enforcement Agency or DEA stated that they would be reclassifying a CBD based drug made by the large pharmaceutical company GW Pharmaceuticals (NASDAQ:GWPH). The British company saw its stock incidentally rise by as much as 7% upon the news hitting the market, but this was swiftly followed by other cannabis stocks rising as well.
The drug known as Epidiolex created by the company has been hailed as one of the best forms of treatment for various types of epilepsy and seizures primarily found in young children. The main ingredient, CBD or cannabidiol, is the non-psychoactive component of the cannabis plant that has been known to have a massive amount of medicinal benefits. CBD for those who don’t know is one of the two main components of cannabis and does not give the user a high like THC or tetrahydrocannabinol. Because of this, it can be recommended for use in children and those who do not want any inebriating effects.
One analyst stated that this announcement “renders the launch set-up fairly straightforward for GW into a market where there is significant unmet medical need and very high pent up awareness/demand.” It is extremely clear that there is a large need as well as a high demand for these types of drugs as they present one of the best alternatives if not the best, to all of the drugs that are on the market right now. Cannabis has been shown to be extremely effective at treating seizures and many patients have stated that simply nothing else has worked for them. The analyst further stated that “we continue to recommend the stock on the basis that we believe the Epidiolex launch can exceed first year expectations.”
The news coming from the DEA is only one of a slew of positivity showing the desire to give patients the treatment they would like to have. Cannabis as an alternative has also been shown to have little to no side effects in general and when compared to the drugs that currently exist to treat these illnesses. The hopes are that this approval and reassignment of the drug will help to trigger the agency and companies to continue on their way to producing and allowing all types of new pharmaceuticals to be made that can help the public with a wide variety of ailments.
Cannabis has been shown to be extremely effective as mentioned prior, but the only issue that remains in the way is that of legislation in favor of the substance from the federal level. The near future will hopefully be filled with more potential for allowing these life-saving drugs to be approved and give patients the care and accessibility they need.
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