Many in the marijuana world have worried a lot about big pharmaceutical companies taking over the industry. While I think that some of those fears are a bit overblown, I definitely am a little concerned too. I think that big pharmaceutical companies are going to flood the industry, and that there's not a lot that can be done to stop it. With that being said, I think that there will always be a place in the marijuana industry for small businesses because they have the products that true veteran cannabis consumers really want.
Yesterday was a big day on the marijuana industry front, especially from a pharmaceutical company standpoint, as the results from a study were released by GW Pharmaceuticals. The results were favorable, and the news sent GW Pharmaceuticals' stock soaring. Per Marijuana Business Daily:
A British maker of cannabis-based drugs revealed some sorely needed good news on Monday, announcing that an epilepsy medicine it created has successfully treated a severe form of epilepsy in children, according to Reuters.
In a clinical study, GW Pharmaceuticals said its Epidiolex syrup reduced the monthly number of seizures in children with Dravet's Syndrome by 39%, compared to a placebo that reduced the seizures by 13%.
The results of the clinical study propelled the Cambridge-based firm's stock price to $81.67 in morning trading on the Nasdaq, a gain of more than 112% over Friday's closing price of $38.46.
On one hand I don't like seeing pharmaceuticals being brought into the marijuana industry. On the other hand, it's my understanding that Epidiolex is a 98% oil-based CBD extract, which is different than a lot of products out there that aren't made form the actual plant. It's worth noting that while GW Pharmaceuticals' stock is way up after the results of the study were announced, they are still digging out of a hole that they have themselves in with recent lack luster sales and not-so-favorable results from studies of other products. So before you run out and invest every penny you have, keep that in mind.