Medical cannabis improves daily life for millions of people all over the globe and this multi-billion-dollar opportunity is still in its infancy.
The biotech sector will be one of the greatest beneficiaries of the legal cannabis movement and we expect this market to see incremental growth over the next decade. The cannabis industry is at a turning point and after spending several years researching cannabis and developing products, companies are beginning to realize the fruits of their efforts.
The cannabis-biotech opportunity is comprised of some of the best capitalized and most mature public companies and we have identified three firms for investors to monitor.
- GW Pharmaceuticals (GWPH) is changing the landscape of the biotech industry and the company already sells a cannabis-derived treatment for multiple sclerosis in 27 countries. Shares of GW have come off its July lows and is trading near $113 after falling below $96 earlier this month. GW is an industry leader and the company has several catalysts occurring in the second half of this year. The company owns the most advanced pipeline of cannabis product candidates and several of these are in late stages of FDA clinical trials (Phase II and III). We are favorable on GW and view the firm as one that investors need to watch as it continues to execute on its pipeline and create value for shareholders.
- Zynerba (ZYNE) is focused on developing and commercializing transdermal synthetic cannabinoid treatments. The company has several catalysts set to occur in the second half of 2017 and we are favorable on the long-term outlook. In late June, Zynerba initiated its ZYN001 Phase 1 clinical program to study the patent-protected, pro-drug of tetrahydrocannabinol (THC) delivered via a transdermal patch. A Phase 2 program for ZYN001 in fibromyalgia and neuropathic pain is planned to start in the second half of 2017. In the coming months, the company is expected to report data for its Phase 2 clinical trial in adult patients with refractory epilepsy and for its Phase 2 clinical trial in patients with osteoarthritis of the knee.
- Insys Therapeutics (INSY) has rallied off its lows from last week and we are cautiously monitoring how the shares trade from here.
credit:420intel.com
