Saturday, February 4, 2023
MJ News Daily
  • Home
  • Popular Weed Strains
  • Best Feminized Seeds
No Result
View All Result
  • Home
  • Popular Weed Strains
  • Best Feminized Seeds
No Result
View All Result
MJ News Daily
No Result
View All Result
Home Cannabis News

How Weed Is Affecting Pharmaceutical Profits — And What That Could Mean For Legalization

MJ News Daily by MJ News Daily
September 20, 2022
in Cannabis News
0
How Weed Is Affecting Pharmaceutical Profits — And What That Could Mean For Legalization
1
SHARES
14
VIEWS

RelatedPosts

28 grams of game: Shiest Bubz is legend

Australia to allow magic mushrooms and MDMA for limited medical use

Individual states continue to open their doors to medical and recreational marijuana, and as they do a new frontier of treatment options opens up to all that states citizens who struggle with various conditions. From cancer to Multiple Sclerosis and many other conditions in between, cannabis is starting to help those who, before medical or recreational cannabis legalization, only had access to pharmaceutical medications.

While this is great news for those who previously had limited tools to treat their medical conditions and the pains associated with them, this is causing shortfalls in pharmaceutical stocks that are likely to widen as legalization efforts progress further.

A recent study published in the journal PLOS ONE has data suggesting that when medical and recreational marijuana becomes legal in a state, there is a swift and noticeable dip in pharmaceutical stock profits. While this decrease might not look significant when measuring overall profits of one of the grandest and most profitable industries, the losses this study is suggesting are certainly eye opening and worth some contemplation.

To put things into perspective, you should understand how much of an impact just one legalization can affect overall drug company profits margins. According to the study, “Returns decreased in response to both medical and recreational legalization, for both generic and brand drugmakers. Investors anticipate a single legalization event to reduce drugmaker annual sales by $3 billion on average.” Regardless of how big of an industry it is, $3 billion is not petty cash. Further, this loss occurs each year, and just from one legalization.

RELATED: Big Pharma Loses Billions With Each State That Legalizes Weed, So What Is Their Next Move?

What makes these losses even more dramatic is that they often begin to take effect almost immediately. According to the study, the average stock returns were 1.5-2% lower just 10 days after legalization of cannabis in a given state. This shows that not only is there a very real and noticeable loss in profit, but the losses begin almost like clockwork after a state grants legal access to marijuana.

This financial downturn the drug companies are taking on might have you wondering if and how these powerful companies are responding to this. As the New Atlas reported “The study does note there is evidence that pharmaceutical companies have recognized this threat from legalized cannabis and begun targeted lobbying to prevent broader legalization.”

pharmaceuticals marijuana
Photo by Cappi Thompson/Getty Images

It is no secret that pharmaceutical companies are doing what they can to stop further legalization efforts. In fact, The Guardian first reported on pharmaceutical companies funneling money in an effort to block future marijuana legalization across the country in a 2016 article, and these efforts do not currently show signs of ending. After all, why would they — until the last state has legalized marijuana that is.

Still, one has to wonder if this is a futile battle. Perhaps, rather than fighting off cannabis, pharmaceutical companies can invest more into understanding the many possibilities and benefits of cannabis. It is, after all, still a relatively untapped resource for potential new products.

RELATED: Why Big Pharma Loves The Power Of Synthetic Cannabinoids

As we previously reported, a new study came out this summer showing that cannabinoids can be safer and more effective than opioids for certain types of pain.

If the energy being placed to stop cannabis legalization was channeled into finding more ways to use cannabis to treat illnesses, who knows what great and profitable results could be achieved.

[Original Source]

Previous Post

Police Recruits In This City Will No Longer Be Disqualified For Past Weed Use

Next Post

Idaho Halts Sale of CBD Pet Supplements

MJ News Daily

MJ News Daily

Next Post
Idaho Halts Sale of CBD Pet Supplements

Idaho Halts Sale of CBD Pet Supplements

  • Trending
  • Comments
  • Latest
Study: Medical Cannabis May Result In Less Opioid Dependence For Advanced Cancer Patients

Study: Medical Cannabis May Result In Less Opioid Dependence For Advanced Cancer Patients

August 8, 2022
The Top 6 Ways to Identify Fake Cartridges

The Top 6 Ways to Identify Fake Cartridges

August 25, 2022
Is Delta-8 THC Actually Synthetic Or Natural? (And Why It Matters!)

Is Delta-8 THC Actually Synthetic Or Natural? (And Why It Matters!)

August 26, 2022
What a first-timer should know before visiting an L.A. dispensary.

What a first-timer should know before visiting an L.A. dispensary.

October 14, 2022

The secret of Runts, fake banana terpenes, and approved solvents

0

Toke or Broke? Keeping a Job With a Medical Card

0

Got the Munchies? 5 Recipes You Can Make Right Now

0

How To Say Popular Weed Words And Phrases In Sign Language Part 2

0
28 grams of game: Shiest Bubz is legend

28 grams of game: Shiest Bubz is legend

February 3, 2023
Australia to allow magic mushrooms and MDMA for limited medical use

Australia to allow magic mushrooms and MDMA for limited medical use

February 3, 2023
Surprise, Missouri! State opens adult-use marijuana sales three days early

Surprise, Missouri! State opens adult-use marijuana sales three days early

February 3, 2023
Yale Announces New Cannabis Research Center

Yale Announces New Cannabis Research Center

February 3, 2023

Recent News

28 grams of game: Shiest Bubz is legend

28 grams of game: Shiest Bubz is legend

February 3, 2023
Australia to allow magic mushrooms and MDMA for limited medical use

Australia to allow magic mushrooms and MDMA for limited medical use

February 3, 2023
Surprise, Missouri! State opens adult-use marijuana sales three days early

Surprise, Missouri! State opens adult-use marijuana sales three days early

February 3, 2023
Yale Announces New Cannabis Research Center

Yale Announces New Cannabis Research Center

February 3, 2023

Other MJ Related Sites:

High Yields

420 Daily Newz

Recent News

28 grams of game: Shiest Bubz is legend

28 grams of game: Shiest Bubz is legend

February 3, 2023
Australia to allow magic mushrooms and MDMA for limited medical use

Australia to allow magic mushrooms and MDMA for limited medical use

February 3, 2023
No Result
View All Result
  • Home
  • Popular Weed Strains
  • Best Feminized Seeds

© 2021 MJ News Daily