Weed Week: Europe or North America, where’s the place to be for ASX cannabis stocks?
Health & Biotech
Health & Biotech
Link copied to
In 2021, which of Europe and North America is the place to be for ASX cannabis stocks?
A few years ago there would’ve been no question that it was North America with Canada legalising recreational cannabis as well as hopes the US could soon follow.
But a fizzing of that “boom” in Canada has allowed Europe to catch up. Europe is increasingly hosting some of the world’s biggest cannabis companies and deals and it has a population nearly double that of North America.
Additionally it hosts 200,000 pharmacies and Green Entrepreneur predicts Europe will overtake the US in the number of medical cannabis trials in the next two years with clearer regulatory frameworks.
And if you look at ASX stocks that have gained the most in the past six months hardly any are focused on North America. Many, however, are focused on Europe.
But don’t count North America out yet.
The recent earnings season showed that cannabis companies over there are pulling bigger and bigger revenues and (where applicable) profits.
With Alabama legalising medical marijuana there are now only 13 more states for medicinal cannabis for state legislators to green-light.
The chairman of Curaleaf said his company’s prospects for growth in the United States have “never been stronger”.
Shareholders of Cronos (ASX:CAU) have had little to celebrate since listing in late 2019 but shares received a boost earlier this week with a sales update.
It began selling medicinal cannabis products in July last year and has never looked back – achieving 200 per cent quarter on quarter sales revenue growth.
Medlab Clinical (ASX:MDC) has also gained in recent days after revealing a major decision it had made for an upcoming Phase III clinical trial of its NanaBis pain relief candidate.
After feedback from a number of regulators, Medlab has opted to use a synthetic cannabinoid formulation. The company has told shareholders it will allow NanaBis to be produced at an industrial scale to the highest quality and consistency.
At Stockhead, we tell it like it is. While ECS is a Stockhead advertiser, it did not sponsor this article.