The Wealthy Biotech Trader (or “WBT”), an investment newsletter focused on showing everyday investors new opportunities in rapidly growing, little-known, biotech, pharma and medical device stocks making news and subsequent market moves, would like to discuss four biotech stocks that could see massive upside potential due to developments in the medical marijuana industry.
The legalization trend being witnessed in the US as well as neighboring countries could propel these stocks:
- 22nd Century Group Inc. (NYSE MKT: XXII)
- GW Pharmaceuticals plc (NASDAQ: GWPH)
- Cannabis Science Inc. (OTC MKTS: CBIS)
- Cannabics Pharmaceuticals Inc. (OTC MKTS: CNBX)
- Enertopia Corp (OTC MKTS: ENRT)
For a glimpse into the kind of surge we’re talking about, let’s have a look at the projections for 22nd Century. Shares were trading at $0.78 on May 5, and Chardan Capital analysts projects the share price to reach $4.50 in less than a year. That’s a return of almost 500%.
Marijuana or cannabis has been known for centuries to treat disease and improve symptoms. The active chemical ingredient in cannabis is called a cannabinoid and there are more than 100 known cannabinoids in the cannabis plant. The two most well-known cannabinoids in marijuana that scientists and researchers believe have numerous medicinal applications are cannabidiol (CBD), which has an impact on the brain, and tetrahydrocannabinol (THC), which has pain relieving properties. The reason modern medicine knows little about the wonder drugs that can be produced from the cannabis plant is because of the Federal ban on marijuana that became effective in the early twentieth century.
Marijuana Regaining Favor
In 1996, California legalized medical cannabis. Over the next two decades, other states followed suit, especially for the legalization of medical marijuana for non-recreational use. With the joining of Pennsylvania earlier this year, 24 states have now legalized use of the marijuana plant for medical purposes.
Also during the course of these two decades, thousands of clinical studies have been conducted to determine the medical uses of cannabis and cannabinoids in different diseases. There is strong evidence of the benefits of medical cannabis in ailments like nausea and vomiting associated with cancer chemotherapy, chronic pain, spasticity in multiple sclerosis, anorexia and cachexia in HIV/AIDS and spinal cord injury.
More recent research has indicated that cannabis helps with epilepsy, pruritus and depression. In March 2016, GW Pharmaceuticals plc (NASDAQ: GWPH) made a breakthrough in the first pivotal Phase III study of its cannabis-derived epilepsy drug Epidiolex in convulsive seizures.
The primary endpoint was achieved with high statistical significance, indicating that Epidiolex reduced convulsive seizures in children suffering from Dravet syndrome, which is a rare and severe form of epilepsy that currently has no FDA-approved treatment.
What Does It Really Mean
While the medical benefits of marijuana continue to be unfolded, there is immense pressure on the Federal government to legalize marijuana. There has already been some breakthrough in this regard. Prior to December 2015, federal cannabis laws took precedence over the medical marijuana laws passed by iphone 7 home button not working various states in the US. This gave federal agents the authority to legally raid medical marijuana dispensaries and seize property even in states where medical cannabis was legal.
With the potential lifting of the federal ban based on momentum gathering from the underlying roll-out of multiple individual states legalizing medical and or recreational, marijuana dispensaries could potentially not longer be under the threat of raids and investigations by federal agents along with a whole host of potential benefits.
Canada is already on the verge, with Prime Minister Justin Trudeau previously announcing that the full legalization of recreational marijuana in Canada is one of his top priorities for Canada, after which Health Minister Jane Philpott has more recently announced that the Canadian government would introduce legislation to legalize recreational marijuana in Spring 2017. Complete legalization in the US is long overdue. This would enable researchers to study the medicinal uses of cannabis in greater depth, and better understand how it impacts the body.
Legalization means so much more to the medical marijuana industry. It would mean no banking restrictions as well as no restrictions on stock exchanges (since these would no longer be illegal businesses). Fewer regulations and increased freedom would greatly boost companies that have cannabis-related products.
Stocks That Could Get High on Marijuana
Here are four stock ideas that are poised to benefit when from the federal government lifts its ban on marijuana:
22nd Century Group Inc. (NYSE MKT: XXII): The company is engaged in the R&D, licensing, manufacturing, and worldwide sales and distribution of innovative and effective patented products. 22nd Century owns or exclusively controls over 200 issued patents and has more than 50 pending patent applications globally. The company’s proprietary genetic engineering technology and plant breeding expertise enables it to upregulate and downregulate cannabinoids in the cannabis plant. 22nd Century is the only company with patents on the genes that completely eliminate THC in plants, the drug that needs to be eliminated in purely medical varietals and commercial hemp varietals of the plant.
The company also has a strategic partnership with Anandia Labs, a leading player in Canada’s cannabis market. The cannabis research collaboration – where 22nd Century holds exclusive rights in the U.S. to the genes required for cannabinoid production in the cannabis plant – holds the promise of lucrative commercialization opportunities. Through its innovative research, the Company intends to cost-effectively produce commercial quantities of marijuana-based cannabinoids – including CBD and CBC – that show great promise in treating neurological disorders and other medical diseases.
Cannabis Science Inc. (OTC MKTS: CBIS): The company is engaged in R&D in medical marijuana. Cannabis Science uses scientific techniques to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products for critical illnesses. The company aims at developing governmentally approved drugs, including CS-TATI1, CS-S/BCC-1, and patented neurological therapy under study or development.
Cannabics Pharmaceuticals Inc. (OTCMKTS: CNBX): Formerly known as American Mining Company, this is a biotechnology pharmaceutical company focused on development and licensing of cannabinoid-based treatments and therapies. Cannabics Pharma develops and markets various therapies and biotechnological tools aimed at providing relief from ailments that respond to active ingredients sourced from the cannabis plant.
Enertopia Corp (OTCMKTS: ENRT): This is a development-stage company that operates through three segments, namely renewable energy, oil and gas exploration and medical marijuana. Enertopia is seeking to produce, cultivate and distribute medical marijuana in Canada under the new Federal Government of Canada’s Marihuana for Medical Purposes Regulations (MMPR) Program.
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