A FAST GROWING OPPORTUNITY LED BY THE RAPID ACCEPTANCE OF MEDICAL MARIJUANA’S GROUND BREAKING BENEFITS

In the USA since 2016, Medical Marijuana has been legalized in over 29 states for medicinal purposes.

In June 2018, the Senate of Canada passed the Cannabis Act, which would legalize marijuana. The Act will be effective starting on October 17th 2018. In Ontario, over 80 stores are expected to open by 2019, with this figure doubling by 2020.

Across Europe, Physicians and the general medical community are increasingly realizing the huge benefits of Medical Marijuana.

CANADA - OUTPUT IS GROWING

HEALTH CANADA - MEDICAL CANNABIS SALES AND PRODUCTION DATA

According to Health Canada, Medical Marijuana production is growing. Sales of dried cannabis have increased from approximately 1,750kg in 2015-Q1 to over 6,000kg in 2017-Q3. Equally of importance is the emergence of cannabis oils at approximately 300kg in 2015-Q4, which has increased to over 9,200kg in 2017-Q3. There is a strong correlation between the production of cannabis oils and dried cannabis, and the sales of cannabis oils and dried cannabis; all factors are increasing. In this sense, The opportunity to tap into the growing supply and utilize this for medicinal benefits has been increasing quarter by quarter since 2015. This is at such a level even before the complete Canadian legalization of cannabis.

Deloitte predicts that 2018 will be a critical year for the Canadian cannabis market, with a total market size of cannabis valuation estimate of $22.6B USD. Testing labs and infused product makers to create medical treatments will make large components of this market size.

USA CASE STUDY - MARIJUANA LAWS IN THE US

CBD and other properties of Medical Marijuana have shown promising applications across many disease indications. Companies are investing efforts into evaluating CBD’s effects in the areas of Cancer, Chronic Pain, and various Neurological issues; This trend is projected to continuously grow.

Note: Vermont and Washington, DC, do not allow marijuana sales for recreational purposes.
In the US since 2016, marijuana has been legalized in over 29 states to be used for treating chemotherapy and pain.

Source: https://www.vox.com/cards/marijuana-legalization/where-is-marijuana-legal

This trend has been followed in Canada which is now on track for Recreational Marijuana legalization by the end of 2018, and across Europe where physicians and the general medical community realize the huge benefits of Medical Marijuana.

Large Pharmaceutical companies are developing innovative CBD treatments in various delivery forms. Clinical trials are currently ongoing and gaining traction, and pharmaceutical companies can expect further benefits from Medical Marijuana and the fast paced growth in technology.

EUROPE

Presently Medical Marijuana is legalized in France (2013), Germany (2017) and Italy (2013). In the UK, a bill to legalize Medical Marijuana will be debated in Parliament in July 2018. Presently, marijuana remains under the control of the UK Home Office - the arm of the government that includes antiterrorism efforts, the prison system and domestic surveillance. Medical Marijuana is not legalized in Spain. However, pharmaceuticals derived from marijuana are legal and have been approved in the EU5, for example Marinol, Sativex and Cesamet.

A FAST GROWING OPPORTUNITY

CBD and other properties of Medical Marijuana have shown promising applications across many disease indications. Companies are investing efforts into evaluating CBD’s effects in the areas of Cancer, Chronic Pain, and various Neurological issues; This trend is projected to continuously grow.

TOTAL MEDICAL MARIJUANA MARKET 2017-2027 (REVENUE-USD BILLIONS)

Source: Fuld+Company Analyst Report, Market and Competitive landscape for Medical Marijuana and Synthetic Cannabinoid

CANNABIS PHARMA COMPETITIVE LANDSCAPE

Clinical trials are currently ongoing and gaining traction, and pharmaceutical companies can expect further benefits from Medical Marijuana.

Cannabinoid Pain Management Competitive Landscape (Market Data: 01/07/2018)

Company Candidate Phase Indication(s) Market Cap Private/Public

GW Pharmaceuticals

Sativex (Nabiximols) Launched (Canada, UK, Limited EU countries) Chronic Cancer Pain $44.96 B USD Public

MedReleaf

MRCP001 Phase 2 Pain Not Available Private

Insys Therapeutics

Nanoencapsulated Dronabinol Phase 2 Neuropathic Pain $68.12 M CAD Public

GB Sciences Inc.

Oral Cannabinoid Nanoparticle Discovery Neuropathic Pain $43.58 M CAD Private

Nemus Biosciences

CDB Analog Discovery Chemotherapy-Induced Peripheral Neuropathy/Pain Syndromes $45.46 M USD Public

Kalytera

Cannabinoid-Naproxen Conjugate Discovery Pain $14.38 M CAD Public

Revive Therapeutics

Cannabidiol Hydrogel Discovery Neuropathic Pain $4.68 M CAD Public

Prana Therapeutics

Bio Nutrient Medicinals P1 Capsules Phase 1 Pain $19.87 M AUD Private

Aphios

APH-0802 Discovery Looking for Partner Cancer Pain Not Available Private Raised $2.4 M (Grant Funded)
All figures accurate as of 11 December 2018