FDA’s Actions Blew Up Cannabis Stocks
Food and Drug Administration announced it was going to develop a framework to regulate CBD and provide the updates in September. That caused an immediate growth of cannabis stocks.
Some examples are:
- Cronos: CRON, -2.98% CRON, -2.77%, 3.4% growth
- The Horizons Marijuana Life Sciences ETF: HMMJ, -0.97%, 1.6% growth
- Aphria: APHA, -3.79% APHA, -3.38%, 1.2% growth, and others.
Amy Abernathy, the FDA’s chief information officer, tweeted that the agency was going to work on numerous CBD questions. She also highlighted that it was an essential problem for farmers and other parties involved in the industry.
Jefferies Tomkins, a Canadian company that obtained licenses for outdoor growing, got its slocks up by 3.2% after winning them. In its public note to customers.
Initiatives such as this are encouraging with regards to medium-term medical outlook.
Jefferies Tomkins
After a long period of putting off, FDA’s CBD-regulating action plan started on May 31. Back then, it started to accept comments from 100+ speakers at a public hearing. The FDA is still dealing with the comments that have been coming since then.
Many businesses are looking to launch new CBD products, pushing the FDA to come up with the rules. At the moment, stores are allowed to sell only topical CBD products and oils. It’s forbidden to sell CBD-infused food and drinks because at the moment, it’s a core ingredient in the first and only approved CBD-based drug Epidiolex.
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