Big pharma moves into Cannabis. As Darren Winters explains, the global pharmaceutical industry, known as Big Pharma, is now seriously eyeing the cannabis market as evidence of cannabis increases.
It is anticipated that as big pharma moves into cannabis it will transform the cannabis industry
The cannabis business has been heavily stigmatized. So big pharma moves into Cannabis is a potential game-changing source of growth for many companies that had previously kept away from the sector.
Big Pharma is some of the largest companies and they make up a few of the most influential lobby groups which can influence government policies.
Darren Winters breaks down that, in terms of size, Big Pharma has a massive market capitalization of $1.7 trillion—Johnson & Johnson being the largest, with a market capitalization of $374 billion.
Big pharma moves into cannabis after a period of watching the cannabis industry from the sidelines
The cannabis plant has been used in medicine since time immemorial. Some estimate it to be as long as 6,000 years.
However, there is still considerable debate around the role it plays in healthcare today.
Big pharma moves into cannabis centers around Cannabis relying on CBD’s therapeutic properties
There is growing evidence to suggest that CBD may be useful in combating a variety of health conditions, such as Epilepsy, Schizophrenia, Multiple sclerosis, Migraines and Arthritis.
Already 33 and States in the US and the District of Columbia have legalized cannabis for medical use.
So big pharma moves into cannabis has been driven by the wide legalization of cannabis in the US for pain management.
Some experts are now recommending cannabis as an alternative to addictive painkillers.
In 2017, more than 70,000 people died from drug overdoses, making it a leading cause of injury-related death in the US. Moreover, of those deaths, about 68 percent involved a prescription or illicit opioid. Adults between the ages of 25 and 54 years old have the highest rates of opioid overdosedeaths.
The legalization of cannabis is anticipated to have an impact on Big Pharma’s bottom line.
Cannabis sales are expected to eat into more than $4 billion from pharma sales annually.
Medical cannabis sales are projected to reach $5.9 billion in 2019, from an estimated 24 million patients.
So Big Pharma moves into cannabis could be a move to capture a growing market share of the cannabis business as a viable medical treatment and as a recreational product.
Seven of Canada’s top 10 cannabis patent holders are major multinational pharmaceutical companies.
Big Pharma moves into cannabis is likely to be accelerated with products supported by medical data. Watch this space.