The Hottest Cannabis Investment in 2017

With all the progress that cannabis legislation has made, investors are looking into profiting from a piece of the cannabis pie. Dispensaries are opening and currently operating in states that have legalized cannabis use in some form. Cannabis use for medical or recreational purposes is legal in 26 states and the District of Columbia.

Here are a few companies in which many investors are sinking their monetary teeth.

Insys Therapeutics (NASDAQ:INSY) had its cannabis-based drug, Syndros, approved by the Food and Drug Administration (FDA) last year. U.S. Drug Enforcement Agency (DEA) has not scheduled Syndros under the Controlled Substances Act yet, nonetheless. Insys stock took a 30 percent dip in March.

Insys had to file for an extension to submit earning results to the Securities and Exchange Commission (SEC) to allow its board of directors’ audit committee to perform an extensive internal review. The company has stated that its earnings numbers (net revenue and pre-tax income) are only off by $5 million.

As the company states that this is a small issue that can quickly be corrected, Insys remains a promising company in which to invest.

Cannabis distributor, Medical Marijuana Inc. (NASDAQOTH:MJNA), is also subject to dips and spikes based on how likely the Trump administration will enforce federal laws against cannabis use.

Attorney General Jeff Sessions has explicitly stated his distaste for cannabis use. Mr. Sessions told a crowd of law enforcement officials that it was just as dangerous as heroin. However, President Trump’s Press Secretary, Sean Spicer, has reaffirmed the White House’s support for medical use of cannabis, just as Republican presidential candidate Trump supported it throughout the campaign trail.

Thus for the four years of Trump’s administration, this stock could be headed for lots of volatility. However, as more people are using cannabis, studies substantiate its medical effectiveness, and more states introduce bills to legalize cannabis, MJNA, one of the biggest cannabis distributors in the country is a great long-term buy.

As peer-reviewed studies find the cannabis’s effectiveness in treating depression, pain, and other ailments, GW Pharmaceuticals (NASDAQ:GWPH) finds itself in a promising spot. GWPH will not be as susceptible to erratic market moves each time White House representatives make remarks on cannabis enforcement. It solely develops a product for medicinal purposes; however, its plant-derived cannabidiol (CBD), Epidiolex, is still awaiting FDA approval. It is very likely that Epidiolex is approved based on recent research findings asserting its effectiveness.

Our best recommendation in this environment is Insys. Experts predict Insys will sell $200 million of Syndros each year. Doctors regularly prescribe dronabinol to treat anorexia for AIDS patients, and cancer patients undergoing chemotherapy. Syndros, dronabinol in liquid form, is a lot easier to ingest, so it’s very likely that patients will use more of the drug.

As long as Insys’ internal audit does not reveal anything too serious the stock is set to recoup its losses expeditiously. Investors should buy the stock now as it dropped after the SEC granted the extension. The scheduling of the drug by the DEA is widely expected to work for the stock.

Cannabis Testing Market To Be Worth $1.4 Million by 2021

Cannabis Lab Testing

The Cannabis Testing Market is set to be worth 1,416.3 million USD by 2021 from $822.0 Million USD in the year 2016, according to recent estimates. Markets & Markets, a global research firm based in India, published the report on the basis of a Global Forecast made by Product & Software (GC, LG, Column, Accessories, Standards, Spectroscopy (Atomic, MS)), Service (Heavy Metal, Potency, Genetic Testing, Pesticides) and End User (Research, Pharmaceutical, Lab) Companies. Additionally, this market will grow to a CAGR of 11.5% during the forecast period of 2016-2021. Moreover, early buyers can expect to earn a 10 percent customization based on the report.

Understanding The Cannabis Testing Market:

This market is primarily categorized based on region, product & software, end user and service. On the basis of product & software, this market is divided into consumables, software and analytical instruments. The segment of consumables will grow with a maximum compound annual growth rate (CAGR) at the time of the forecast period because of repetitive usage and recurring requirements.

In 2016, North America accounted for the biggest share in the global cannabis testing market. Europe had the second biggest share. These same regions will ensure the highest CAGR’s at the time of the forecast period. North America is the main region for the growth of this market because of the growing number of laboratories for testing cannabis, the increasing awareness in relation to medical cannabis, the presence of outstanding players in North America, as well as the rise in funding for the cannabis industry.

Prominent players for testing cannabis software ad products include Shimadzu Corporation of Japan, Agilent Technologies, Inc. of the US, PerkinElmer, Inc. of the US, AB SCIEX LLC of the US, Millipore Sigma of the US, Restek Corporation of the US, Waters Corporation of the US, LabLynx, Inc. of the US, and Accelerated Technology Laboratories, Inc. of the US. The outstanding players for service of cannabis testing include CannaSafe Analytics of the US, Steep Hill Labs, Inc. of the US, SC Laboratories of the US, Digipath Labs, Inc. of the US, and PharmaLabs, LLC of the US.

Target Audiences Include:

Laboratories for cannabis testing

Cannabis associations

Cannabis LIMS/software vendors

Manufacturers of analytical instruments

Academic universities and institutes

Venture capitalists

Consulting and research firm

Estimation for Expansion:

This estimate is inclusive of the computer software and equipment cost that will be used for testing cannabis – highly priced gas and liquid chromatography machines – along with the expense for hiring trained and skilled workers who will administer the investigations and interpret the results. This could be one area where the growth might be inhibited as research analysts believe that there aren’t many skilled professionals to perform lab testing of cannabis.

Finally:

While this report happens to be one among the 60,000 market reports that Markets & Markets publishes every year, it will surely create havoc in the cannabis testing market. It can also be safely assumed that sooner and not later, there will be an increase in the demand for reliable and accurate cannabis testing to get access to clean cannabis, which will be likely be followed by revelations of several contamination scandals.