The Cannabis Plant’s Biggest Moment Ever and 10 Stories From New Cannabis Ventures

This is a copy of the June 24th edition of our weekly Newsletter, which we have been publishing since October, 2015.


Barring an unexpected decision from the FDA, GW Pharma, which will hear from the agency by Wednesday, will make history this week when it receives approval for Epidiolex, its oral CBD solution that treats the seizures caused by rare forms of epilepsy. While the FDA has approved synthetic THC previously, this will be the first FDA-approved drug derived from the cannabis plant.

Epidiolex approval will be not only a victory for GW Pharma but also a major milestone for the legalization movement. For years, cannabis has been seen by the federal government as dangerous and having no medical benefits, but clearly that is not the case, according to the advisory committee that reviewed Epidiolex and recommended that the FDA approve it.

We have seen some confusion about what might happen if Epidiolex is approved.After FDA approval, the DEA can take up to 90 days to schedule it, and then the company will begin to market it. Some have mistakenly concluded that the DEA must reschedule cannabis, but this is not the case. The approval of Epidiolex will have no direct impact on the current Schedule 1 status, but it sure seems like it would be great evidence in a court case should someone sue the federal government.

Investors have made bets on GW Pharma, and it’s not clear how much the approval is priced in, but the more interesting exercise is to assess how FDA approval of a cannabis-derived pharmaceutical will impact the overall industry. Some fear, incorrectly we believe, that this could be a threat to the dispensary model, but this ignores the history of fish oil, which has pharmaceutical and over-the-counter products that coexist. We think that the success of GW Pharma will spur investors to fund other companies pursuing the FDA path. This is already happening to some degree, but we think the approval of Epidiolex will accelerate the trend.

To learn more about Liberty Health Sciences, visit the company’s Investor Dashboard that we maintain on its behalf, click the blue Follow Company button in order to stay up to date with their progress.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:

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Alan & Joel

Exclusive article by Alan Brochstein, CFA
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

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