Weed Week: Wait till cannabis is legalised federally in the US – big pharma are already dreading it
Health & Biotech
Health & Biotech
Cannabis is legal across 35 states (including Washington DC) in America. While federal legalisation has not yet happened – big pharmaceutical companies already fear that day.
Osagie Imasogie is the founder and chairman of Pennsylvania-based Ilera Healthcare, which is merging with Zelda Therapeutics (ASX:ZLD) to form Zelira Therapeutics. The move is to be voted on today at the latter company’s AGM.
Yesterday he told a broker lunch when cannabis was legalised federally in the US, big pharmaceuticals had a lot to lose.
“There is a $[US]330 billion ($486.4 billion) annual drug spend in the US. This year $US4.86 billion of that has switched from traditional pharmaceuticals to cannabis based drugs,” he said.
“It’s not a theoretical debate as to whether or not we’ll take market share – it has already happened.
“And 90 per cent of people who switched from a traditional product to a cannabis product said it was better than the original.”
Speaking of the US, it’s thanksgiving today and turkey’s on the table.
You could have ordinary gravy, or cannabis gravy. Kiva Confections has created the latter although it’s currently only available in California.
Kiva has promised would-be customers it can take effect within 15 minutes, and its perfect for restoring a good mood after awkward conversations. If you’ve missed the boat, it will be releasing cannabis-based cocoa in time for Christmas.
In Australia, Sydney-based importer and distributor Greenfield MC Global launched a crowdfunding campaign. The company hopes to raise between $500,000 and $1.5m – with a minimum investment of $242.
This week’s biggest jumper was MMJ Group (ASX:MMJ). It owns 26 per cent of Canada-listed cannabis play Harvest One which released its financial results on Tuesday.
It made $4.1m in revenue in the September quarter – 142 per cent higher than the same quarter last year.
MGC Pharmaceuticals (ASX:MXC) is now pushing into Latin America. It is launching a joint venture with BrasilInvest Group to distribute its products into Brazil.
The Latin American market is estimated to reach $US8.5 billion by 2028.
Australian Primary Hemp (ASX:APH) signed a collaboration MOU with Mycelium Biotech Services (MBS). The two firms will develop new products with the benefits of APH’s hemp and MBS’ mushroom-filled protein power.
Botanix Pharmaceuticals’ (ASX:BOT) US partner Purisys has been able to convince the Drug Enforcement Agency to de-schedule synthetic CBD – but it’s a one-off exemption and not an industry wide shift.
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