Last year was a good year for the recreational and medical marijuana industry, with major pharmaceutical companies entering the medical space. Many believe that this year will be even better for pharmaceutical marijuana, given the strides the industry has taken.
For instance, huge pharmaceutical marijuana mergers and acquisitions deals were sealed last year, including GW Pharmaceuticals’ acquisition by Jazz Pharmaceuticals. which was valued at $7.2 billion. Pfizer also entered into an arrangement to purchase Arena Pharmaceuticals for $6.7 billion while Dermapharma Holding SE purchased C3, Canopy Growth’s subsidiary for about $93 million dollars. In addition to this, Teva Pharmaceuticals also entered into a distribution deal with Cannbit-Tikun Olam.
Companies involved in the recreational marijuana industry also pivoted toward pharmaceutical marijuana applications, with Curaleaf purchasing Emmac Life Sciences in a $286-million-dollar arrangement. Major players such as Tilray-Aphria and Aurora also pivoted toward pharmaceutical cannabis, with most Canadian marijuana firms and multistate operators also recording significant growth in the recreational cannabis market. Even Philip Morris International, a multinational tobacco and cigarette manufacturing company, has shown interest in the pharmaceutical market side with investments such as Syqe Medical.
Additionally, Big Alcohol and Big Tobacco have signaled operational interest in the adult-use market in moves such as British American Tobacco investing in Organigram Holdings and Constellation Brands investing in Canopy Growth.
Towards the end of 2020, the United Nations voted to reclassify marijuana, which enabled cannabis pharmaceuticals to enter the global space. Currently, the potential use for marijuana in pharmaceutical applications is a primary driver for legalization in Europe and is accepted in most parts of the globe now.
Recreational marijuana has also swept through most of South and North America, with some rumblings in Switzerland, Portugal, Malta, Luxembourg and Germany in the European Union. Europe is currently demonstrating the most advancement in pharmaceutical marijuana while Canada and the United States dominate sales in the recreational marijuana market, making up about 80% of the global revenue in the market. However, it has yet to be decided whether medical marijuana applications will become accepted internationally as tested and registered pharmaceuticals that physicians across the globe can prescribe.
The policies imposed on marijuana also present hurdles for the recreational and medical marijuana markets that need to be dealt with, both in the U.S. as well as globally. Despite this, 2022 may be a good year for the marijuana industry as more nations as well as states in the U.S. advance reform policies and pharmaceutical firms make more advancements.
As cannabis pharmaceutical companies grow their footprint in the sector, other industry companies such as Red White & Bloom Brands Inc. (CSE: RWB) (OTCQX: RWBYF) are consolidating their positions in the different states where they have operations as the industry awaits federal marijuana policy reforms.
NOTE TO INVESTORS: The latest news and updates relating to Red White & Bloom Brands Inc. (CSE: RWB) (OTCQX: RWBYF) are available in the company’s newsroom at https://cnw.fm/RWBYF
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