Cannabis Sector Heads To Next Phase Of Legalization, Many Variables At Play

 | Jun 04, 2019 10:45

Within the fast-paced and rapidly expanding marijuana industry, the anticipation of the second phase of legalization—the approval of what is collectively referred to as the next generation of cannabis products, pot-infused foods, beverages and topicals—is adding to the frenzied pace of activity in both Canada and the United States. And both investors and consumers are watching closely.

For proof, you only have to look at the amount of attention two recent events, one in the U.S., the other in Canada, have generated. Last Friday in the United States, the U.S. Food and Drug Administration (FDA) held a full day of hearings in Maryland on cannabis products and compounds that can be used in everything from baked goods, drinks, dietary supplements, skin-care products, oils and dog food. The hearings, which amounted to an open fact-finding mission, were short on conclusions, raised a lot of questions, but primarily served as a big public step forward on the march toward legalizing these products.

Testimony focused mainly on CBD oil, the non-psychoactive extract from marijuana that is touted for its medicinal and therapeutic benefits. More than 100 individuals—researchers, doctors, health professionals, manufacturers and legalization opponents—provided their views and insights.

Because CBD oil is listed as a drug in the U.S., it falls under the FDA’s purview, and cannot be added to food or beverages. The FDA did, however, acknowledge what it termed “strong public interest” in the substance as a wellness product, which is touted for its anti-inflammatory properties, and for treating pain and anxiety, and pledged to work toward approving regulated use. Late last year, the FDA approved its first cannabis-based drug, Epidiolex, to treat seizures in children. It is manufactured by GW Pharmaceuticals (NASDAQ:GWPH).