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Weeding out opportunities in the cannabis sector

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  • Medical cannabis was legalized in the UK in 2018
  • Regulatory limits mean that investment options remain speculative

Pot is no longer as taboo as it used to be. The UK legalized medical cannabis in 2018. In doing so, it joined a number of other countries – including Canada and several US states – that allowed the once stigmatized product to be used to treat pain and certain diseases.

The Financial Conduct Authority (FCA) further legitimized the industry when it paved the way for medical cannabis companies to list on the London Stock Exchange last September. A series of initial public offerings (IPOs) followed, giving private investors the opportunity to buy into this, at first sight, burgeoning movement.

Concerns remain, however, that strict rules will limit the commercial activities of cannabis companies and the enthusiasm of potential shareholders.

A report published in April found that “the regulatory landscape for medicinal cannabis is currently troubled”. The Maple Tree Consultants and Mackrell Solicitors paper stated that “the recognition of the medicinal properties of cannabis in the UK has come relatively late”. This, along with a “restrictive and cautious approach”, means that “the UK risks missing out on the commercial and industrial benefits of this rapidly developing sector”.

One of the main difficulties is that cannabis producers with offices outside the UK could be breaking the Crime Investigation Act. Recreational cannabis remains a criminal offense in the UK, although it has been legalized in other countries. The FCA says it needs to be convinced that the activities of medical cannabis and cannabis oil companies with overseas business would be legal if conducted in the UK.

Business growth requiresres regulatory relaxation

Maple Tree believes that post-Covid-19 pandemic medical cannabis “has the potential to revolutionize patient care and boost the UK economy” – and suggests estimates that the domestic market could be worth over £ 2.4 billion by 2024 .

As things stand, the UK relies on overseas supplies and imports 100 percent of its cannabis-based medicines prescribed to patients, despite producing significant amounts of medicinal cannabis itself.

Developing its own sector would theoretically secure supply chains for patients in need while encouraging cannabis users to use official channels to access the product for medical reasons. Prohibition Partners, a cannabis-focused research firm, found that in the UK in 2019, 1.4 million people used cannabis for the treatment of chronic diseases, while only 153 prescriptions were issued for cannabis-based drugs.

Overall, Prohibition Partners estimates the global medical cannabis market could be valued at £ 48.3 billion in three years. However, this growth depends primarily on a further relaxation of the regulatory framework. It will also be based on data showing the effectiveness of cannabis as a serious therapeutic.

To this end, the “Project Twenty21” was launched last year to create the greatest evidence for the effectiveness of medical cannabis in the UK. Drug Science, the organization behind the project, hopes their findings will “provide evidence of NHS funding when the benefits of medical cannabis treatment have been shown to outweigh the potential risks.”

An update to the study last month suggested that legally prescribed cannabis clinically significantly improved the quality of life for people with conditions such as multiple sclerosis and epilepsy.

Pharma investments are still emergingent

But can a grassroots UK cannabis industry really make it into the mainstream arena, or has the hype overtaken reality? The significant transaction activity this year suggests that many are predicting big things for the sector.

For starters, in February Jazz Pharma (US: JAZZ) has agreed to acquire GW Pharmaceuticals – a UK-based Nasdaq-listed company – for $ 7.2 billion. GW’s lead product, Epidiolex, an oral cannabidiol solution, is used to treat patients with rare diseases characterized by severe, early-onset epilepsy. Epidiolex was the first herbal cannabinoid drug ever to be approved by the US Medicines Agency. Before the company moved to the US, the company was one of Aim’s storm successes – when it was removed from the stock market in 2016 to trade exclusively on the Nasdaq, the share price had more than quadrupled.

Others are now hoping to follow in the company’s footsteps, including Oxford cannabinoid technologies (OCTP), which was listed on the Central London Market in May. “We see ourselves as the next GW Pharmaceuticals,” said Neil Mahapatra, CEO of OCT.

“Like us, GW is one of the few companies in the cannabis sector that does not require any real further development of cannabis law for its business model to be successful,” he adds. “That’s because [we] leverage these existing channels of drug development, clinical trials, and regulatory approval […] to develop our products. “

OCT aims to develop cannabinoid drugs “for the safe, effective, and ineffective treatment of painful conditions”. It intends to use the £ 16.5 million raised on its IPO to move its four leading drug programs further into development and its two leading programs into clinical trials.

Its main connection will be from a spin-off of. in-licensed Pfizer (USA: PFE) in Japan. The active ingredient “has real blockbuster potential for a number of indications in neuropathic and visceral pain,” explains Mahapatra. It can be prescribed as a potential drug for a number of pain indications without the psychoactive effects of getting high.

According to OCT, its focus is on the total addressable pain market valued at $ 42.5 billion. However, this is not the immediate target market for its products, which are initially targeting a market worth around £ 1.55 billion. “That will expand as our pipeline grows to cover other indications,” Mahapatra estimates at around 19 billion pounds.

As things stand, the company – whose shares have plummeted 16 percent to a market capitalization of £ 42 million since going public – doesn’t expect to commercialize its first drug before 2027.

Newcomers and tobacco iOfficial

Other cannabis related companies listed in London include MGC Pharma (MXC) and based in Israel cannabis (KNB).

Clinical research at MGC, which launched in February, is focused on CannEpil for epilepsy and CogniCann for Alzheimer’s, as well as the development of other early-stage formulations. The company is also conducting studies for a product called CimetrA in hospitalized Covid-19 patients.

Kanabo was also floated on the stock exchange in February through the reverse takeover of the special purpose vehicle (Spac) Spinnaker Opportunities. As a research and development company, it sells a range of cannabidiol (or CBD) free products without THC (non-psychoactive) and develops various medicinal cannabis products.

It’s not just new kids on the cannabis block. Long-established tobacco companies have also thrown their hats in the ring and given their existing shareholders exposure to the industry. FTSE 100 listed British-American tobacco (BAT) announced in March a £ 126 million investment and strategic collaboration with Canada-based Organigram (CA: OGI), representing a 19.9 percent interest per share in the company. Organigram develops and sells recreational and medicinal cannabis products in Canada, where the drug was legalized in 2018.

peer Imperial brands (IMB) signed a £ 75 million R&D partnership in 2019 with Canadian company Auxly Cannabis, while the producer of Marlboro Altria (US: MO) bought an interest in Canada’s cannabinoid company Cronos (CA: CRON) for $ 1.8 billion in the same year.

All of these dealmaking activities could add shine to the investment case for cannabis-related businesses, but this is an arena that is still highly speculative. And that’s before the fact that easing regulations could lower the barriers to entry and let more companies join the battle, which could increase competitive pressures.

But as the direction of travel in Europe is clearly towards gradual decriminalization, this could be one of the great investment growth stories of the next decade. Just don’t expect the room to light up right away. HC

There is an ETF for that

For those looking to spread their bets across this emerging field, a fund option is an option Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR), which previously invested in GW, Arena Pharmaceuticals and Cara Therapeutics. It is always worth remembering that thematic funds have their own nuances and should always be weighed against various options available.

Surname market Mkt Cap Millions (local) Price change (YTD) Sales CAGR% (5 years) According to R&D sales in% (3 years)
British-American tobacco United Kingdom 63905.10 2.84 14.47 0.46
Jazz Pharma US 10860.59 8.42 12.28 13.35
Kanabo group United Kingdom 75.52 340.86 N / A N / A
MGC Pharma United Kingdom 60.73 N / A N / A 381.05
OrganiGram Canada 1178.02 133.73 144.83 0.99
Oxford cannabinoid technologies United Kingdom 40.34 N / A N / A N / A
Source: fact set
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CBD

Aforé™ by Dr. Few Announces New CR Emulsion

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Through rigorous clinical testing and an innovative ingredient profile developed by Dr. Few discovered, the Aforé CR Emulsion uses the wrinkle-reducing power of retinol, while the addition of CBD soothes irritations and increases tolerance for all skin types.

“CBD alone has shown promise in cosmetic medicine when properly incorporated and combined with synergistic ingredients,” shares Dr. Few with. “CBD is naturally anti-inflammatory and promotes healing. I believe that the anti-inflammatory and antioxidant properties of CBD are an essential part of protecting the skin and contributing to the graceful aging of all skin types. “

A groundbreaking clinical study led by Dr. Few shows the effectiveness of adding CBD, a natural anti-inflammatory ingredient, to the 0.2% retinol base solution, which maintains anti-aging properties but with fewer side effects. The 42-day study shows significant reductions in static and dynamic wrinkles, fine lines, hyperpigmentation, and pore size in 100 percent of the patients who used the CR emulsion, with no patients reporting significant irritation during the 6-week study.

About the introduction of the product, Dr. Few: “When I first started visiting patients in Beverly Hills, I was exposed to cannabis and became very curious about its potential benefits. Just because an idea emerges outside of traditional medical avenues doesn’t mean it is irrelevant. I realized that very little work was being done to research the medicinal properties of cannabidiol on the skin. That was enough for me to take one more look and take the clinical research and final development linkage. ”

Developed through years of clinical curiosity and research, the CR Emulsion was created through the combination of ingredients that act on complementary biochemical pathways important for maintaining skin health and preventing skin aging. By combining solubilized CBD and retinol (along with other carefully selected peptides), retinol’s proven ability to improve cell turnover and reduce the depth of fine lines and wrinkles is maintained, while medical-grade solubilized CBD counteracts irritating effects (such as redness or peeling) that would otherwise occur.

In addition to its impressive anti-aging properties, CBD also helps maintain the skin’s barrier function, antioxidant and anti-inflammatory activity, and optimal sebum production. In particular, the CBD used in this study is water soluble. Most commonly, CBD is dissolved in coconut oil or medium chain triglyceride oil (MCT), which can clog pores or make skin look greasy or dull.

The CR emulsion is commercially available for $ 299.95 at aforebeauty.com.

ABOUT BEFORE
Afore is the beginning of a new approach to beauty and skin care. Literally translated as “beginning” or “before”, Aforé aims to restore your skin and keep it in a condition from before – from sun damage, from environmental pollution and from signs of aging. With Dr. Julius Fews innovative Four Dimensional Beauty approach, Aforé condenses the best of clinically validated, proven formulas into simple skin care programs. Formulated, tested and prescribed by Dr. Julius couple, Aforé was ultimately designed to bring natural beauty to all skin types. From the first impression to the daily interaction, Aforé makes natural beauty your beginning.

www.AforeBeauty.com
@AforeBeauty

SOURCE Aforé By Dr. Apartment

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Global market for cannabis is booming

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By PKBalachandran

Colombo, December 6th (Ceylon Today): The global market for cannabis and its products is booming, with many nations deregulating or lifting the ban on weed. The UN Narcotics Commission (UNCND) reclassified cannabis as a “therapeutic product” in December 2020 to facilitate this process.

In a letter for the Trade Promotion Council of India website, Indian trade specialist Suhyl Abidi says the world market for cannabidiol (CBD), a chemical found in cannabis, will grow by 21.8% in value, from $ 5.49 billion (in 2019) to $ 26.25 billion by 2027.

“This is being driven primarily by the increased use of CBD in medical applications, supplements, beverages, and skin care. CBD products have been advertised for a variety of health problems such as anxiety, insomnia, drug addiction, and acne, ”says Abidi.

Yes, the use of hemp cannabis is stigmatized. However, that’s because it’s being mistaken for marijuana, which is high in tetrahydrocannabinol (THC), Abidi says. Cannabis contains two psychoactive compounds, tetrahydrocannabinol (THC) and cannabidiol (CBD). The high levels of THC in marijuana are responsible for getting it “high”. Legal hemp has to contain 0.3% THC or less, which is not enough to get you high, says Abidi.

CBD is a therapeutically important derivative of cannabis and is sold in the form of gels, gums, oils, nutritional supplements and extracts. Abidi says that hemp seeds are known as a “superfood” that can boost immunity.

The cannabidiol market is likely to see significant R&D investment in the developed world. The first cannabidiol drug, Epidiolex, was approved by the US FDA, confirming some of the therapeutic benefits of cannabidiol.

Madness in the USA

In 2019, CBD became one of the top 40 best-selling ingredients in mainstream US retail stores for the first time. CBD sales were $ 36 million, making it the ninth largest nutritional supplement ingredient sold. Sales of CBD rose a remarkable 872.3% from 2018 to 2019 – the largest increase among the top 40 mainstream ingredients, Abidi points out.

It is estimated that 64 million US adults have tried CBD in the past two years. Among respondents, the most common reason they took CBD was to relax and relieve stress / anxiety. 64 percent rated CBD as “extremely or very effective”.

Abidi cited “World’s Top Exports” to say that exports of cannabis oils from all countries totaled $ 2.9 billion in 2019. That was an increase of 23.3% for all cannabis oil exporters from 2015. India was the second largest exporter with 320.8 million US dollars (11.1% share) of sales, after China, which in 2019 was 964 million US dollars (33rd , 4% share) exported.

However, export growth in some smaller countries was many times higher. For example: Vietnam (plus 529.5%), Madagascar (plus 232.2%), Morocco (plus 218.1%) and the Netherlands (plus 124.5%).

Abidi says governments in developing countries should provide the right direction, policies, and regulatory framework for the medical cannabis industry to thrive. The excessive regulatory stranglehold on the opium industry has steadily reduced the number of licensed growers, which has significantly reduced exports, he emphasizes. Using India as an example, he says: “In 2016 India exported 98 tons. But in 2018 it was 48 tons, in 2019 it was 14 tons according to ITC Trade Map data. “

When Rajitha Senarathna was Sri Lanka’s Minister of Health, Ayurvedic practitioners had told him that they were not getting the high quality cannabis needed for their medicines. He had requested licensed cultivation of cannabis.

Panacea for Lanka

Be that as it may, currently, dollar-hungry Sri Lanka is having to grow and export cannabis and its formulations to tap the burgeoning overseas market. According to the Central Bank of Sri Lanka, the country’s external debt rose from $ 47 billion in the first quarter of 2021 to $ 50 billion in the second quarter of 2021. Currency reserves have now dropped to $ 2.3 billion.

Against this background, the Lankan Minister of Indigenous Medicine, Sisira Jayakody, informed parliament on November 30th that the government had decided to pass a law within three months that would prohibit the cultivation of cannabis for both the local production of medicines and also allowed for export.

“High quality medicinal cannabis can be used to treat cancer, neurological diseases, mental disorders, as a pain reliever, and also in the beauty culture industry. It can be used in treating COVID. But it was forbidden when we were under British rule, ”said Jayakody.

Earlier, at a meeting in a rural area, President Gotabaya Rajapaksa announced that he would advocate the cultivation of cannabis for medicinal purposes as it is part of traditional Sri Lankan medicine. On October 7th, 2020, Prime Minister Mahinda Rajapaksa announced to parliament: “Our government is considering applications to legalize cannabis.”

The challenge

However, the change in cannabis policy could encounter inclement weather. As of now, the cannabis trade in Sri Lanka is illegal. The government will take possession and sale of the substance with fines and imprisonment.

The Poison, Opium and Dangerous Drugs Act states: “No one may sow, plant, cultivate, maintain, possess or collect poppy, coca or hemp plants or the seeds, pods, leaves, flowers or plants without permission from the Minister have any part of such a plant in their possession. “

The law further states: “No person may (a) collect, prepare, process, sell or offer for sale, manufacture, store, receive or have in his possession, distribute resins obtained from the hemp plant for the preparations or extracts or use from the hemp plant commonly known as bhang, hashish or ganja, or any other preparation from which this resin is separated. “

The medical profession also seems to be against it. According to the Sri Lankan National Council of Mental Health (NCMH), cannabis “abuse” can have severe psychological and sociological consequences. “Cannabis use is associated with apathy, sedation and disinhibition. cognitive dysfunction and poor self-care. Cannabis use can also increase the risk of psychotic disorders and lead to a poor prognosis for those with a proven susceptibility to psychosis. The prevalence of cannabis use is higher among people with psychosis in our country, ”says the NCMH. However, the NCMH recognizes the medicinal benefits of cannabis-based preparations. This is because these are made according to strict Ayurvedic principles.

The reaction of the Buddhist clergy to the government’s proposal remains to be seen. There could be opponents that the government would have to administer. Perhaps the clergy would understand the government’s case, as they too are interested in surviving Ayurveda, which needs cannabis.

In South Asia

Cannabis and its derivatives are banned in India under the Narcotic Drugs and Psychotropic Substances (NDPS) Act 1985. However, India voted in the UN Narcotics Commission (UNCND) in December 2020 to decriminalize cannabis. Hence, measures to decriminalize it should follow in India.

Last year, Pakistan allowed cannabis to be grown as an export crop, as the country is also short of dollars. Afghanistan will also follow, as it suffers from a severe dollar shortage due to the global boycott of the Taliban regime.

In Bangladesh, all narcotics, including marijuana, were made illegal by the Narcotics Control Act of 1990. Under the law, the cultivation, production, processing, transportation, transportation, import, export, supply, purchase, sale, possession, preservation, storage, display or use of any type of narcotic drug, including marijuana, are illegal. However, the law permits the manufacture, processing, import, export, supply, purchase and sale of narcotic drugs for any licensed medicinal product or for the conduct of any scientific research, provided this is done under license.

However, it is very unlikely that Bangladesh will allow the cultivation of cannabis as a commercial crop, as Prime Minister Sheikh Hasina has opposed drugs, no matter how mild and harmless they may be. Your government had gone on a rampage to ruthlessly exterminate drug dealers.

END

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What do you know about the benefits of CBD oil for vegan athletes?

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CBD can be a great natural performance enhancing compound for a number of reasons. Here, guest post Areyo Dadar gives us an insight into the benefits of CBD oil for vegan athletes.

For starters, CBD doesn’t show up on drug tests (if below 0.3% THC) – which makes it ideal for competitive athletes; and it has the added benefit of speeding up recovery after intense workouts. Learn more about why CBD oil is great for vegan athletes:

What does CBD do for athletes?

There are several reasons every fitness enthusiast might want to try CBD. Here’s why:

CBD relieves pain

Regular exercise almost always leads to sore muscles, so you need to find a way to speed up recovery. Muscle recovery can have a profound impact on your ability to endure high-intensity workouts and build strength over time. Research shows that CBD uses the endocannabinoid system to relieve pain, reduce inflammation, and maximize performance.

CBD increases stamina

There is a lot of research exploring how CBD can be used to improve performance, especially before a competition. Brain receptors like CB1 and CB2 are used to manage stress levels in the body, and using CBD reduces anxiety to the extent that performance is improved.

Taking CBD just hours before a public event has been shown to reduce anxiety in people with conditions like social anxiety disorder, PTSD, and other similar conditions. The same effect can be used by athletes to improve performance.

CBD is an excellent alternative to prescription pills

Prescription pain relievers cause all kinds of addictions, including changes in hormone levels, which in turn affect performance. Using CBD helps maintain hormonal balance, including lowering cortisol levels – which is important as cortisol slows muscle growth.

Why do vegan athletes use CBD?

As an athlete, you know how important nutrition is for performance, which is why many athletes follow a vegan diet. If animal products are affecting your performance, consider using CBD made from hemp to keep energy levels high and maintain homeostasis.

Hemp is the best source of pure CBD – and that’s because it provides a range of nutrients that help build speed, strength, and mental focus. This is why CBD is particularly useful for athletes:

CBD gives you the perfect 1: 3 ratio of omega-3 fatty acids, including omega-6 fatty acids. These are great for your heart health, blood pressure, and strengthening your immune system. In addition, CBD works in the endocrine system to balance the release of essential hormones and help maintain homeostasis.

CBD is a source of protein. Hemp plants contain all 20 amino acids; which makes it a complete protein chain. Many of the amino acids you get from food are found in CBD.

CBD contains B-complex vitamins, including vitamins B6, B12, riboflavin, niacin, and thiamine. As a vegan, you likely don’t have enough sources of complex vitamins, which is why CBD should play such an important role in your training.

CBD contains high amounts of iron. Vegetarians need a cruelty-free source of iron, and if you don’t want to take iron supplements, taking CBD oil or other CBD products can keep your hemoglobin levels intact and help transport oxygen.

A powerful antioxidant, CBD supports your body by providing vitamin C, vitamin E, flavonoids, and other properties that help in eliminating toxins. Additionally, it helps get rid of free radicals which, as you know, can slow performance and leave you prone to disease and infection as cells become damaged.

CBD for athletes

The amazing thing about CBD is that it can be taken in any form, including powders, supplements, oils, and dozens of delicious CBD foods. Some users prefer to take it as a pill, while others prefer to apply it topically to the muscles and joints after exercise. Topical creams can penetrate the skin to provide essential nutrients to the body, including vitamins and minerals – and they have the added benefit of improving skin condition and preventing acne.

Here are some positive benefits of CBD:

  • A great source of iron;
  • A complete source of protein;
  • Painkiller;
  • Increase Endurance;
  • Works as an antioxidant;
  • Energy booster.

There are a growing number of professional athletes using CBD to prevent sore muscles, and the fact that medical research shows no downside to using the active ingredient (despite connections to cannabis) has led to a shift in perception, since more and more people are accepting the product. Start taking CBD before and after your workout to boost performance and reduce inflammation.

Areyo Dadar
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