Aurora stresses the medical side
Aurora Cannabis (ACB) reported its Q2 earnings yesterday, which gave us a glimpse of recreational cannabis sales activity and what to expect from peers’ (MJ) upcoming earnings. While the recreational cannabis market was in focus for investors during its earnings call, Aurora Cannabis stressed its developments on the medical front.
Establishing a medical angle
During the second quarter, Aurora Cannabis reported a total of 73,579 registered patients across Canada, which grew by 9% from 67,484 patients in the first quarter. During the earnings call, the company’s chief corporate officer, Cameron Battley, called Aurora Cannabis a “medical company at heart.” The company stated that it started 40 clinical trials and seven preclinical studies. The company is pushing to make cannabis for medical use more grounded in science and data.
We believe that the medical cannabis business will be the next wave in the cannabis sector after we are past the Canadian recreational cannabis wave. Our belief stems from the assumption that international markets will first open up to medical cannabis before recreational cannabis. Thus, companies such as Aurora Cannabis (ACB), Canopy Growth (WEED), Tilray (TLRY), and Aphria (APHA) stand to gain provided they are able to create an intellectual property portfolio for medical products.
The company stated that establishing itself as a “highly credible medical operator” will allow it to engage with governments in international markets.
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