Tuesday, January 20, 2009

Marijuana Stocks


On Thursday, January 22, CNBC will be presenting a program called Marijuana Inc., which goes into depth about the big business of marijuana. But besides the illegal uses of marijuana, there are many medical uses. For example, the Journal of Neuroscience reported that the active ingredient in marijuana can be used in the treatment of Alzheimer's disease. Researchers found that cannabinoids can help prevent mental deterioration through the reductions of Alzheimer's related inflammation.

Even members of the government are starting to change their tune on the drug. Bob Barr, a former Republican congressman from Georgia, who had historically opposed medical marijuana use, has done a complete turnaround and now supports the adult use of medical marijuana. He is now a lobbyist for the Marijuana Policy Project.

So are there any public companies that can benefit from the marijuana sector? There seems to be a grass roots effort to get this budding industry growing, or maybe it is just a pipe dream.

A couple years ago, a Canadian company, Cannasat Therapeutics Inc. (CTH.V), went public, which trades on the Toronto Venture Exchange. The company has been involved in the development of cannabinoid-based pharmaceutical products, which are utilized in the treatment of neuropathic pain, chronic pain, depression, anxiety and movement disorders. In addition, the company had owned, but recently sold, part of Prairie Plant Systems Inc., the only Canadian government licensed grower and distributor of medicinal cannabis. Cannasat is a very low cap stock and should therefore be considered very speculative.

Cannasat had entered into a collaborative agreement with IntelGenx Corp. (IGXT.OB) a few years ago to develop cannabinoid-based product based on IntelGenx's proprietary drug delivery technologies. IntelGenx is a very low cap stock and should therefore be considered very speculative.

Its rivals include U.K.-based GW Pharmaceuticals (GWPRF.PK), which makes Sativex, an oral spray created with tetrahydrocannabinol and cannabidiol, and is approved in Canada for treatment of multiple sclerosis related pain and spasticity. This is a very low cap stock and should therefore be considered very speculative.

Amigula Inc. (AMJL) claims to be the world's first publicly traded marijuana company. They grow and distribute medical cannabis under a license from the Canadian government, which patients with multiple sclerosis, epilepsy, arthritis, glaucoma, AIDS, anxiety and stress use for pain, nausea, and lack of appetite. They also own 51% of Medical Cannabis Inc. This is a very low cap stock and should therefore be considered very speculative.

Pharmos Corp. (PARS) is a New Jersey based biopharmaceutical company which makes CB2-selective cannabinoids for inflammatory/autoimmune diseases. Their synthetic cannabinoid compounds, Cannabinor, has completed a Phase 2a clinical trial for pain relief with an intravenous formula. This is a very low cap stock and should therefore be considered very speculative.

Solvay SA (SVYSY.PK) is a Belgian pharmaceutical company that makes Marinol, which is made from Dronabinol, a pure isomer of THC, the main isomer in Cannabis.

Although a small part of the business, Valeant Pharmaceuticals International (VRX) makes nabilone, another form of synthetic THC, which is available commercially in Canada as Cesamet, and which has also received FDA approval.

On the other end of the spectrum, there is Psychemedics Corporation (PMD), which is a Massachusetts based provider of testing services to detect abused substances from the analysis of hair samples. It uses mass spectrometry to detect presence of marijuana, and other drugs. This is a very low cap stock and should therefore be considered very speculative.

If you like drug stocks, maybe you should consider Highest Yielding Big Pharma Stock, Gene Therapy Stocks, and Anti-Depression Drug Stocks.

Author does not own any of the above.

By Stockerblog.com

Picture courtesy of Wikipedia.

5 comments:

eltone said...

The delay in legalizing Cannabis the safest, most effeicient and effective drug that safely controls chronic nausea and vomiting, is just putting off the inevitable. A worsening economy, sub-standard health care, etc. Good Lord, Even Henry Ford realized the vast economic potential of Hemp in the early 1900's when he built a car literally from the 'ground' up. The door panels, fenders and bumpers all made from "Resin Stiffened Hemp Fiber." The interior cloth from Hemp fiber plus it's fuel was ethanol from the Hemp Seeds. Now with these multi-billion dollar industries from Medical Marijuana/Hemp what the heck are we waiting for???

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eric said...

Upon reading your article at http:http://www.stockerblog.com/, I found your material very insightful and of very high quality. I wonder if you are interested in contributing to our website, www.gurufocus.com.


We are operating a website (www.gurufoucs.com) dedicated to follow the Investment Gurus's methodologies, styles and positions. We have a significant following in the value investing community. We also offer research data such as 10-year fianancials and 10-year historical valuation for investors to make investment decisions.



We don't have specific requirements on articles' length or format, but they must be based on solid research, and not promotional.



We do require columnists disclose their positions if they discuss certain companies in their columns.
We expect that our columnists write at least one article a month. Please note that columnists are not compensated monetarily.



You can contribute in one of the four ways:

1. send us the articles via email attachment

2. follow the submit an article link in our website

3. authorize us to copy and paste when the article becomes available on your website

4. allow us to subscribe to a RSS feed and authorize us to copy and paste.



In each of the four ways, we will preserve the author attibution and provide a link to the original location in your website. This will help the columnists build reputations and their business. Some of the articles will also appear on Google News, Google Finance, and Yahoo News, further enhancing the traffic to your website.

We are looking forward to hearing from you



With best regards!

Eric

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