While the world is still marveling at the bold step that Canada took to legalize recreational marijuana and the resources that the recreational market is likely to command with that legalization, analysts are suggesting that the real money is most likely to be made in the medical cannabis arena.
The medical cannabis market is predicted to be worth approximately $50 billion by 2025. This is a huge jump from what the value of the medical cannabis market was in 2017 (just over $8 billion).
The huge potential for the medical marijuana takes on a bigger positive outlook when one considers the rate at which several countries around the world are legalizing the medical use of cannabis.
The UK plans to allow doctors to start prescribing marijuana in November this year. Malaysia is working out how to permit the medical use of cannabis. Denmark and Luxembourg are also taking steps to legalize medical cannabis.
The rate at which the list of countries where medical marijuana is allowed is growing much faster than the rate at which recreational cannabis can be expected to be decriminalized around the world.
The stigma attached to recreational cannabis use is one of the major reasons why one would be well advised to put their money on medical cannabis instead of thinking of investing in the recreational marijuana sector.
It is significant that the FDA approved a marijuana-based drug in June for the treatment of childhood epilepsy. That was the first time that the U.S. agency approved a cannabis-based drug in a country where the federal government still looks at marijuana as a schedule 1 substance (substances with no medical use and a high likelihood of being abused).
Pharmaceutical companies have also been courting Canadian cannabis industries in order to discuss possible partnerships in developing the medical cannabis sector further. For example, the Canadian division of Swiss-based Novartis International AG has reached an understanding with Tilray Inc. to develop cannabis delivery systems and products jointly.
It should be noted that the pharmaceutical industry carefully weighs the prospects in a given sector before making a commitment. This is because lots of resources are usually invested in R & D before a product ever has a chance to reach the market.
The moves by pharmaceutical firms to partner with cannabis companies is therefore an indicator that the long-term prospects for medical cannabis are solid and major investments can be made into the sector. American marijuana companies like NUGL Inc. (OTC: NUGL) and SinglePoint, Inc. (OTCQB: SING) can only pray that the regulatory climate in the U.S. improves quickly so that they aren’t left behind as the medical cannabis industry evolves rapidly.
More from CannabisNewsWire
About CannabisNewsWire
CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
To receive instant SMS alerts, text CANNABIS to 21000
For more information please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com