There’s been no confusion about the topic. Marijuana legalization has enlightened the masses. This hasn’t been just from a recreational “get high” stance but also from medicinal applications as well. One of the key substances that many in the medical community focus on has been cannabidiol or CBD for short. This is one of at least 113 active cannabinoids identified in cannabis. It is a major phytocannabinoid, accounting for up to 40% of the plant’s extract. But why is it important and why will it be something to pay attention to during the birth of this new marijuana / cannabis industry?
When cannabis is consumed, cannabinoids bind to receptor sites throughout our brain (receptors called CB-1) and body (CB-2). Different cannabinoids have different effects depending on which receptors they bind to. For example, THC binds to receptors in the brain whereas CBN (cannabinol) has a strong affinity for CB-2 receptors located throughout the body. By aiming the right cannabinoid at the right receptors, different types of relief are achievable.
So what could this mean for the potential in a heavily dominated, big pharma world? Well, in short, think about the business of prescription drugs. You’ve got treatments to ease pain, treatments to fight inflammation, treatments to curb seizures, and even different therapies for combating the side-effects of the side-effects of certain therapies…and it all boils down to a multi-billion dollar industry that has proven to eventually get patients hooked on the medications; unable to get off of them due to the bodies affinity for addiction.
Cannabis could actually change this completely and there’s now a huge push by biotech driven companies and holistic users to be first in the race to tackle some of the most unique issues the pharmacological world faces right now. The rising cost of healthcare and prescription medication has basically paved the way for cannabis & CBD-centric companies to take advantage of this in a major way. In many cases, because CBD can be derived from hemp, there’s no psychoactive reaction to its use.
This having been said, let’s take a look at a few companies in the space and observe the true potential of this industry.
INMED PHARMACEUTIC COM NPV (OTCMKTS:IMLFF) has been one of the key companies in the research and development space for Cannabinoids. As one of very first biotech companies that entered the Cannabinoid research space, they could be uniquely positioned to capitalize on the anticipated growth of the cannabis-derived pharmaceutical market by creating not just therapies, but efficient scientific procedures to develop those drugs. More importantly, they may also patent new methods in the process that are bankable & universal for other companies. The company’s Chief Medical Officer, Dr. Ado Muhammed is the former Assoc. Medical Director for GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) and was part of the development team that developed Sativex; a cannabinoid-based drug for MS that has been approved in over 15 countries worldwide.
Shares of this company have been on the rise for the last week. In fact since March 24, the price has risen from around 29 cents to as high as $0.72 on Thursday April 6. This move of over 100% within days has been catalized by INMED PHARMACEUTIC COM NPV (OTCMKTS:IMLFF) ‘s execution on its business plan.
Another company that is more in the general retail/over-the-counter market is Ubiquitech Software Corp (OTCMKTS:UBQU). Don’t let the name fool you because through their subsidiary, HempLife Today, they procure and sell their own line of CBD products under the “CannazAll” name-brand. Recent guidance suggests that the company is on pace for a banner year. In fact, the CEO himself (James Ballas) stated in a recent press release, “”With the quality of our products, our marketing, customer support and satisfaction, and our dynamic thinking, we will continue this growth through 2017 and into 2018, which we are already planning big things for, and this is the thinking that will take our revenues to even higher gains as we continue.”
Additionally, those who may not be familiar with CDB products have been given a chance to get a free sample. On Thursday, Ubiquitech Software Corp (OTCMKTS:UBQU) announced that it would be giving away a free trial pack of six CannazALL™ CBD GelCaps to all existing shareholders, their families and friends. Similar to InMed, the company’s stock has coincided with the rise in CBD stocks. Since March 30, shares have increased by as much as 26% during the week of April 2.
Another CBD stock to watch is Cara Therapeutics Inc (NASDAQ:CARA). This has actually been a stock mentioned by CNBC host Jim Cramer. It’s estimated that between 26 and 36 million people abuse opioids worldwide. As the problem becomes more pronounced, Jim Cramer spoke with the CEO of a company that hopes to help solve the epidemic. Cara Therapeutics Inc (NASDAQ:CARA) has been steadily climbing since December and the stock price has managed to skyrocket by 105% ($9-$18.50). Their recent expansions into the pain-relief industry could become a huge catalyst for their growth, especially as the market starts to accept CBD as a healthier alternative to addictive opiate-based painkillers.
Other companies that are in this arena helping to pave the way for new options of pain management (and related) include GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), Insys Therapeutics Inc (NASDAQ:INSY) and Cannabis Sativa Inc (OTCMKTS:CBDS).