The Medicinal Cannabis Industry In May
As the cannabis industry grows the medicinal use of marijuana will play a big role in the future of the market. According to BDSA global cannabis sales reached an estimated $21.3 billion in 2020 an increase of 48% compared to 2019. By 2026 BDSA forecast global cannabis sales could grow to $55.9 billion. Although much of the growth will be seen in the recreational market medical marijuana could have substantial growth potential as well.
Pharmaceutical cannabis is beginning to be used as a remedy for a variety of different ailments. This is producing a rapidly growing market for medical marijuana companies. As 2021 continues and more states legalize cannabis the industry is experiencing significant growth for the next five years. For investors, this could be an opportunity to gain exposure to one of the fastest-growing industries on a global scale.
Primarily medicinal cannabis is becoming an alternative to taking other prescription drugs that have more side effects. Recently New Frontier Data estimated U.S. annual sales of medical marijuana could grow to $16.3 billion by 2025. As a comparison, medical cannabis sales in 2019 were $5.9 billion. In reality, this shows substantial growth potential for the part of the cannabis market.
Researching and Investing In Medicinal Cannabis Market
Another reason why investors should do their due diligence and look into the medical side of the cannabis industry is for the possibility of long-term potential in the area of the market. Traditionally these marijuana stocks have shown much less volatility than the vertically integrated pure-play pot stocks. Because of this medical cannabis stocks could be more suitable for these types of plays. In some cases, these medicinal cannabis stocks also provide a dividend to shareholders giving further long-term incentives.
For the purpose of finding an option in the cannabis sector for top medical marijuana stocks in 2021, we can research some companies. Actually, some of these companies also have other medicines on the market and can give investors exposure to a wider portion of the pharmaceutical market. With this in mind, let’s take a look at possibly 2 of the best medical marijuana stocks to invest in for 2021.
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Medical Marijuana Stocks To Watch:
- GW Pharmaceuticals plc (NASDAQ: GWPH)
- AbbVie Inc. (NYSE: ABBV)
GW Pharmaceuticals plc
GW Pharmaceuticals plc is a leading biopharmaceutical company focusing on the discovery and development of therapeutics from its cannabinoid products. Specifically, the company develops medical cannabis drugs to help treat multiple diseases and has seen significant success with one drug in particular. GW Pharms’ leading product Epidiolex is utilized in the U.S and other parts of the world as a treatment for seizures associated with a variety of serious diseases. At the present time, Epidiolex is one of the only cannabis drugs approved by the FDA in the U.S. and the European Union for medical use amongst doctors.
In its latest earnings report, GW Pharm saw Q4 and full-year total revenue of $148.2 million for Q4 and $527.2 million for the full 2020 year. On April 23rd GW’s shareholders voted to approve the acquisition by Jazz Pharmaceuticals plc (NASDAQ: JAZZ). On April 20th the company received approval for EPIDYOLEX as a treatment of seizures associated with the Tuberous Sclerosis Complex. TSC causes epilepsy in almost 85% of patients with the disease and 60% of those patients don’t respond to other Epilepsy medicines. This represents the 3rd use for Epidyolex in Europe at the moment.
GWPH stock is up 89.66% year to date with a high of $219.18 in April. Closing on April 27th at $218.90 the has traded around these levels since the announcement of the Jazz acquisition. According to analysts at Tip Ranks GWPH stock has a 12-month average price target of $220 per share. But because of GWPG stock’s long-term potential, this is a top medical marijuana stock to possibly add to your cannabis stock 2021 watchlist.
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AbbVie Inc.
AbbVie Inc. is a leading pharmaceutical company delivering innovative medicines to help solve some of the world’s serious health issues today and in the future. In particular, the company focuses on areas of the therapeutic market. Some of these areas immunology, oncology, neuroscience, eye care, virology, women’s health, and gastroenterology. Before becoming AbbVie the prior company Abbott acquired Solvay’s pharmaceutical division in 2010 and took on Marinol a cannabinoid-based medicine. Marinol was the first FDA-approved cannabis drug on the market. Primarily, Doctors prescribe Marinol to patients with nausea and vomiting from cancer medications. Another use for the medicine is also people with AIDs use it to combat lack of appetite.
In its latest financials, AbbVie reported Q4 and full-year 2020 financial results that show strong net revenues of $45.78 billion. Additionally, Abbvie issued its EPS guidance for 2021 of $6.69 to $6.89. Also, the company expects to deliver adjusted diluted EPS for the full year 2021 of $12.32 to 2.52. For the long-term shareholders, the company provides an annual dividend payment of $5.20 per share. In addition, the company has a dividend yield of 4.93%. And Giving ABBV stock more appeal for the long hold.
ABBV stock is up 3.96% year to date with a high of $113.41 in January. Closing on April 27th at $111.44 the stock is up 5.10% in the last 30 days. According to 7 analysts at Wall Street Zen ABBV stock has a 1-year average price target of $123.29 per share. In essence, this would be a 10.63% gain from current market levels. For this reason, ABBV stock could be the top marijuana stock to buy in May 2021.
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