The FDA on regulating CBD
The US Food and Drug Administration is set to hold its first public hearing on May 31 to get information about cannabis-based compounds. The objective is to gain insight into scientific data along with other functions relating to the production and sale of cannabis products.
A step forward
The FDA interest comes on the back of US hemp legalization through the new Farm Bill last year. Following the public hearing, the FDA’s next steps will be closely watched—given that many investors and customers have stayed away from cannabis-based products due to the lack of scientific data on cannabis’s effect.
Canopy Growth (WEED) has been investing in its scientific division to address this concern while Tilray (TLRY) is conducting a joint study with the UC San Diego Health to study the effects of compounds found in cannabis on certain disorders.
Stay tuned to see how the hearing affects cannabis stocks. OrganiGram stock (OGI) was up today 4% while Green Thumb Industries (GTBIF) rose nearly 1%. Check out Green Thumb Industries: Wall Street Ratings and Target Price. In contrast, the ETFMG Alternative Harvest ETF (MJ) was trading nearly flat.