The DEA has given Epidiolex, the CBD-based pharmaceutical derived from cannabis that was approved by the FDA for the treatment of rare forms of epilepsy in June, Schedule V status according to the Office of the Federal Register.

The developer of the pharmaceutical, GW Pharma (NASDAQ: GWPH), had suggested previously that it expected to receive Schedule IV or better, so the outcome was favorable. Schedule V, according to the DEA:

Schedule V drugs, substances, or chemicals are defined as drugs with lower potential for abuse than Schedule IV and consist of preparations containing limited quantities of certain narcotics. Schedule V drugs are generally used for antidiarrheal, antitussive, and analgesic purposes.

GW Pharma stock posted an all-time high last week in advance of the finalization of its approval, as the DEA was required to provide a scheduling within 90 days of FDA approval.

The company, which owns the global rights to Epidiolex, has stated that it will begin sales immediately upon scheduling.

Breaking News by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email