Earlier this year, California began legal sales of cannabis products for recreational use and since then, further political changes have been planned. Meanwhile, states reap the benefits from the new growing market.
Fortune reported that, “in order to collect USD 1 Billion a year in taxes, the state will need to reach a projected USD 7 Billion in annual legal recreational cannabis sales.
At that rate, California would easily be the country’s largest legal marijuana market, as the entire legal cannabis industry in the U.S. is expected to pull in roughly USD 10 Billion in total sales for 2017.
That number would almost certainly get a boost in the coming years, as legal markets grow in California and other states, such as Nevada and Massachusetts.”
According to that recent report published by Forbes, Brightfield Group projects that the global cannabis market was worth USD 7.7 Billion at the end of 2017, and is predicted to reach USD 31.4 Billion by 2021. The United States accounts for about 90% of the whole market, but its domination of the market is likely to decrease to approximately 57%, due to the legalization of cannabis products in other nations. Canada is considered as one of the largest markets for cannabis products and the country plans to legalize recreational cannabis later this year. Earlier this year, California voted in favor of recreational cannabis laws, which were officially implemented on January 1st, 2018.
Cannabis related stocks in the news:
Cara Therapeutics Inc. (NASDAQ:CARA) CARA $19.82000 -1.39300% is a clinical-stage biopharmaceutical company focused on developing and commercializing new chemical entities designed to alleviate pruritus and pain by selectively targeting peripheral kappa opioid receptors (KORs). Studies on the effects of cannabis (marijuana) have led to the recent discovery of an endogenous system of ligands in humans involved in a number of physiological processes including pain and inflammation. Cara is developing lead molecules that selectively modulate peripheral CB receptors without targeting CNS cannabinoid receptors. Peripheral CB receptor modulators will be initially developed as a novel therapeutic approach for neuropathic pain, a condition currently without consistently effective therapies.
GW Pharmaceuticals plc (NASDAQ:GWPH) GWPH $140.75000 -0.76800%, a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform. In April that the Peripheral and Central Nervous System Drugs Advisory Committee of the U.S. Food and Drug Administration (FDA) unanimously recommended supporting the approval of the New Drug Application for the investigational cannabidiol oral solution (CBD), also known as Epidiolex®. If approved, Epidiolex would be the first pharmaceutical formulation of purified, plant-based CBD, a cannabinoid lacking the high associated with marijuana, and the first in a new category of anti-epileptic drugs (AEDs).
Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) ZYNE $- -%, a clinical-stage specialty neuropsychiatric pharmaceutical company dedicated to developing and commercializing innovative pharmaceutically-produced transdermal cannabinoid treatments for rare and near-rare neurological and psychiatric disorders.
22nd Century Group, Inc. (NYSE:XXII) XXII $- -%, a plant biotechnology company that is focused on tobacco harm reduction and cannabis research, announced last year, that the Company’s research collaboration with strategic partner Anandia Laboratories, Inc. in Vancouver, Canada, has resulted in new industrial hemp plants that have zero tetrahydrocannabinol (THC), the principal psychoactive constituent in cannabis. “We are delighted that our exciting research with Anandia Labs has created zero THC plants and altered levels of cannabinoids suitable for both industrial hemp and medical marijuana,” explained Dr. Paul Rushton, 22nd Century’s Vice President for Plant Biotechnology. “We anticipate that our zero THC hemp plants will form the basis of a new generation of industrial hemp and medical marijuana varieties. These markets are projected to be multi-billion dollar markets in the near term.”