How the Cannabinoid Industry is Evolving with Growing Biotech Influence

The impending marriage of the biotech industry and the legal (i.e. medical) cannabis industry is looking like it will be a long and happy marriage. As the use of legal marijuana grows globally, the medicinal (as opposed to recreational) revenues will continue to grow and become the dominant share of the legal marijuana market. According to Grand View Research the global legal marijuana market size is expected to reach USD 73.6 billion by 2027. It is anticipated to expand at a CAGR of 18.1% during the forecast period. Increasing legalization of cannabis for medical (as well as adult-use) is expected to promote growth. On the basis of type, the medical segment held the leading revenue share of 71.0% in 2019, owing to the growing adoption of cannabis as a pharmaceutical product for treating severe medical conditions, such as cancer, arthritis, and Parkinson's disease and Alzheimer's disease among other neurological conditions. Moreover, increasing need for pain management therapies along with growing disease burden of chronic pain among elders is expected to boost the product demand. Active companies in the markets this week include: Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), CanaFarma Hemp Products Corp. (CSE:CNFA), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Aphria Inc. (NASDAQ: APHA) (TSX: APHA). Recent reports also show that biotech companies are focusing on medicinal uses based on cannabinoids and that joining could result in even more increases in revenues. An industry insider article said: "Many companies in the biotech industry are researching cannabis extracts. It is a green field for them because some medicines containing cannabinoids have been legalized for the treatment of specific diseases, and conditions like pain, anxiety, and insomnia. They feel the use of cannabis extract for medicinal purposes has not been exhausted." It continued: "Some of the reasons why the biotech industry is excited about cannabidiol include: It is a New sector – being an entirely new field gives an equal chance to each company to come up with great products; Invention – in the tech world, invention is a key motivation.