Where to invest that cash, Medical Marijuana Or Recreational Marijuana?
The marijuana stocks is broadly divided into two parts, this is where every other divisions fall under, the medical cannabis stock and the recreational cannabis stock. What’s the difference you probably ask? Its the same stuff used in both stocks, right? Right, you’re right, but there’s a slight deviation in their uses as well as their outcome. Both stocks are quite promising for an investor’s investment due to their different applications.
Medical Marijuana Market
By 2027, the medical marijuana market will be about 33%, with the remaining 67% going for recreational marijuana. Now as the future comes the prospect of the medical marijuana stock looks quite investment – yielding. The recreational market slumped from a 100% in 2013 hold down to a 71% lead on the medical market in 2017, though this may be to the fact that only two states legalized the sale of the recreational marijuana stock.
The medical marijuana market has still not seen the influx of major pharmaceutical companies, but yet the lead gained on the recreational marijuana market is bringing the wide berth to a narrow gap. Their influx will see a major rise in the use of marijuana to produce drugs containing cannabinoid drugs. However, companies like Tilray Inc., Cara Therapeutics, Corbus Pharmaceutical, Zynerba Pharmaceutical and GW Pharmaceuticals have begun research into this and are already making and paving ways for others.
GW Pharmaceuticals for a case study spent $8.1 million more on research and technical development because of the expenses on Epidiolex, the first drug approved by the FDA that contains cannabis chemicals. This also gave birth to a $1.1 million increase in their revenue due to the boost of their new drug Sativex, which is a mouth wash based on cannabinoid chemicals.
The production of Cannabis-based-drugs (CBD) by the sane company lead to a $6.6 million in capital expenditure. You want a safe market for investing, the medical marijuana stock is one of those few, because with the rate of legalization going on, it seems the medical marijuana will receive a lot if favour than the recreational marijuana. The drawback for this though is the long term before it comes into actualization, GW Pharmaceuticals spent 19 years researching on Cannabis Based Drugs before they finally created one, in other words, those who invested had to wait 19 years or less for their investments to pay off. Currently only four drugs which have cannabinoid chemicals have been approved by the FDA to be used as treatment of which Epidiolex is one, this drugs are being used to treat types of neurological disorders.
Advantages of the Medical Marijuana Stock
Use of Cannabinoid to solve medical issues: What is Cannabinoid? Cannabinoid is a non-psychoactive chemical of the Cannabis plant. Cannabinoid can be used to treat rare, severe forms of epilepsy in children and also is currently used to treat Post Traumatic Stress Disorder in returning war-heroes.
Use of Cannabinoid as replacements: Cannabinoid has been reportedly used to replace painkillers in states that have implemented the medical legalization of marijuana.
Use of Cannabinoid as a game changer: In the European Stock Exchange, Cannabinoid is a game changer in their market, dominating in the marijuana market.
In our next article, we’ll be looking towards the recreational marijuana stock and why you should invest in it.