Breaking News – DEA Removes CBD as a Schedule 1 Drug
Written By: Jen Neville
October 3, 2018
Why all the excitement about CBD? "CBD is growing faster than cannabis in the U.S. and will soon be a $22 billion industry. It's been flying under the radar but is set to explode having profound impacts on CPG and Pharma" stated industry expert, Brightfield Group.
Last weeks notice from the Drug Enforcement Administration, Department of Justice added, "With the issuance of this final order, the Acting Administrator of the Drug Enforcement Administration places certain drug products that have been approved by the Food and Drug Administration and which contain cannabidiol in schedule V of the Controlled Substances Act. Specifically, this order places FDA-approved drugs that contain CBD derived from cannabis and no more than 0.1 percent tetrahydrocannabinols in schedule V."
This news sent several CBD stocks moving to the upside including Tilray Inc, also making inroads into Pharma. On September 18th the company announced that "the U.S. Drug Enforcement Administration had granted approval to import a cannabinoid study drug into the United States from Canada for a clinical trial at the University of California San Diego Center for Medicinal Cannabis Research.
The news also continued to say, "Tilray is providing a cannabinoid formulation for the trial in capsule form, which will allow researchers to test an investigational drug product containing two active ingredients extracted from the cannabis plant, cannabidiol and tetrahydrocannabinol. Dr. Fatta Nahab, a board-certified neurologist and director of the Functional Imaging of Neurodegenerative Disorders Lab at the UC San Diego Health's Movement Disorder Center, will serve as the principal investigator for the study. It is expected to begin in early 2019 with financial support from Tilray and the International Essential Tremor Foundation."
Investors have also been betting and winning on the successful marriage of CBD in the beverage market. Stocks like Aurora Cannabis Inc. and India Globalization Capital, Inc. have given investors big wins, with Aurora skyrocketing on a potential Coca-Cola deal and IGC soaring on news that it "plans to create a branded, hemp/CBD-infused version of the formulation that addresses market demand for energy drinks with the inclusion of healthy properties derived from hemp including CBD." India Globalization Capital stock traded over 100 Million shares on Friday and was up over 40%.
For investors wanting a taste of the CBD opportunity but looking for a more inexpensive way to get into the market, Ryan Fishoff, CEO of American Premium Water Corporation stated he is growing his CBD beverage company and "Positioning for Fourth Quarter M&A Activity." According to the news, "the Company had identified four targets, three within the CBD/THC sector, and is currently engaged in active negotiations".
So, from the CBD beverage boom to inroads into the big Pharma market, investors are riding high and looking for the next big application and approval for CBD.