According to IBIS World, the medical marijuana industry of United States has grown at a 16 percent CAGR in 2009 to 2014 and has generated $2 billion in annual revenue. With more that 1.4 million businesses and an increasing number of public companies in space, the investors have multiple options when looking to gain exposure, ranging from small firms developing delivery systems to large firms running clinical trials.
These companies are focused largely on endocannabinoid receptors CB2 and CB1 that are thought to be involved with a range of physiological processes, including memory, mood, appetite and pain-sensation. By using CBDs found in marijuana, they hope to treat a wide variety of medical conditions, such as Tourette’s syndrome, cancers, glaucoma, epilepsy and multiple sclerosis.
So far, it has been identified by researchers about 100 cannabinoids with potential to become the low-cost treatments for such conditions, counteracting the expensive and toxic therapies and drugs developed by more traditional, larger pharmaceutical companies.
Capitalizing on CBDs
The poster child for marijuana therapeutics is GW Pharmaceuticals plc that rose from $8.90 per share following May 2013 initial public offering to more than $107 per share in 2014. Recently, the Sativex clinical trials of company have involved more than 3,000 patients being studied for bladder dysfunction, arthritis, cancer pain treatment and neuropathic pain and many other conditions.
While clinical traits of GW Pharmaceuticals are generally long-term in nature, Cannabis Technologies Inc. aims to shorten time to the market by leveraging its CDP (Cannabinoid Drug Design Platform). This technology is designed to identify new bioactive compounds rapidly within the marijuana plant that interact with particular genes responsible for specific diseases.
GW Pharmaceuticals trades with a $ 1.5 billion compared to the $15 million market capitalization of Cannabis Technologies, which means that it involves greater risks in exchange for higher potential reward. The players in the market include Valeant Pharmaceuticals’ Inc.’s, AbbVie Inc.’s, THC-based Marinol for nausea and Cesamet cannabinoid for neuropathic pain.
Cannabis Technologies has positioned itself for capitalizing on the $2 billion marijuana therapeutics industry with its unique experienced management team and CDP platform. As the company expands its botanical research efforts, the investors are seeking exposure to the growing medical marijuana industry may want to take a closer look at the stock.