Cannabis stocks fall
On June 3, the overall cannabis sector was bleeding, with the Horizons Marijuana Life Sciences ETF (HMMJ) falling nearly 3% and major stocks Tilray (TLRY), Canopy Growth (WEED), Aurora Cannabis (ACB), and Aphria (APHA) down 7.8%, 4.4%, 4.1%, and 3.7%, respectively.
On May 31, the FDA had a public hearing with the intention of soliciting information about the effects of CBD-derived (cannabidiol) products. FDA Commissioner Ned Sharpless didn’t have many positive things to say about CBD.
According to CNBC, the commissioner stated, “There are real risks associated with [THC and CBD] and critical questions remain about the safety of their widespread use in foods and dietary supplements, as well as other consumer products — including cosmetics, which are subject to a separate regulatory framework.” This statement spells bad news for those hoping to gain market access to the United States, which holds much larger promise than Canada.
Several companies have been working on a wide variety of products that feature CBD derivatives, especially after the country legalized hemp. The latest comments by the FDA have likely put a damper on the hopes of these companies. The commissioner has admitted that there’s still a lot the FDA doesn’t know about CBD, adding to the complexity of its legalization.