Many pharmaceutical companies are concerned about how the legalization of cannabis will affect their business, and some have already begun targeted lobbying to prevent its legalization. Many of these firms have been in the business for decades and have seen the potential threats that legal cannabis poses to their business. This article will discuss how legalization could affect publicly traded pharmaceutical companies.
Big Pharma’s Interest in the Cannabis Industry
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Toggle Table of ContentThe legalization of marijuana is a threat to Big Pharma and the pharmaceutical industry, and they are prepared to fight it. After all, the global pharmaceutical industry is expected to reach $1.5 trillion by 2023. Those sales will dwarf those of cannabis in retail sales in the U.S., which is projected to reach $52.6 billion by 2026.
In recent years, there have been several examples of Big Pharma’s interest in the cannabis industry. Two of these companies are Johnson & Johnson and AbbVie, which have been investing in the cannabis industry. Both companies have a history of developing drugs that address various health problems, and Johnson is pushing the commercialization of medical marijuana. AbbVie has patented fifty-nine cannabis-related patents in the U.S. Aside from this, cannabinoid pharmaceutical companies are emerging in different parts of the world, especially in the U.S.
Harm Reduction
Harm reduction in cannabis is rapidly growing, but what is the best way to treat cannabis users? A harm reduction approach must take a multidisciplinary approach. The first step is to understand cannabis from a biological perspective. This means understanding the various effects that cannabis can have on humans and other organisms.
Syndros is a Synthetic Version of THC
Tetrahydrocannabinol (THC), the primary psychoactive ingredient, is reproduced in Syndros of the cannabis plant. It was approved by the FDA last summer for treating nausea and vomiting in cancer patients and weight loss in AIDS patients. Despite being approved by the FDA, Syndros is still classified in the same Schedule as cocaine and morphine, two drugs with high abuse potential.
Syndros is used as an oral solution or capsule and is approved to treat nausea and anorexia associated with AIDS and cancer chemotherapy. However, there is a risk of side effects if combined with other medicines.
Legalization Affects the Stock Market Returns of Publicly Traded Pharmaceutical Firms
Researchers from California Polytechnic State University and the University of New Mexico recently analyzed the stock market returns of 556 publicly traded pharmaceutical firms to see how legalization affected them. They found that stock returns for drug makers declined by 1.5 to 2% on average ten days after legalization. The impact was doubled for recreational legalization.
The researchers concluded that legalization would decrease pharmaceutical sales by more than 2% in the first year after legalization. This reduction is statistically significant, considering the shifts in pharmaceutical sales. Furthermore, the researchers used data from the pharmaceutical industry to estimate how much money would be lost if medical marijuana were legalized in all fifty states.
Cannabis is Used to Treat a Wide Range of Conditions
Cannabis is used to treat a variety of medical conditions, including cancer. It is used orally and has chemical components that act on receptors in the body. These compounds are known as cannabinoids. Some researchers have found that they may have benefits in treating cancer-related side effects, including nausea and vomiting.
The FDA warns companies that market unproven marijuana-derived products. The study included 49,343 men ages 19 and 21 who enrolled in the military. They were followed for 42 years. Heavy Cannabis use was associated with a 2.5-fold increased risk of testicular cancer. However, the study relied on indirect measures of Cannabis use, and it did not collect data on use after conscription or on subtypes of testicular cancer.
Delta-9-tetrahydrocannabinol is the primary psychotropic component of cannabis. Which is extracted from the plant. Other cannabinoids, including CBD, are also found in cannabis. They have been found to reduce inflammation, pain, and other symptoms of various conditions.