The Big Pharma Takeover of Medical Cannabis
As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless companies.
Today’s infographic comes to us from CB2 Insights, and explores how and why the notorious Big Pharma are interested in the nascent cannabis industry.
Who are “Big Pharma”?
The term refers to some of the largest pharmaceutical companies in the world, considered especially influential as a group. To give a sense of their sheer size, the market cap of the top 10 Big Pharma companies is $1.7 trillion—Johnson & Johnson being the largest, with a market capitalization of $374 billion.
So far, Big Pharma has watched the cannabis industry from the sidelines, deterred by regulatory concerns. What we are seeing now is the sleeping giant’s takeover slowly intensifying as more patents, partnerships, and sponsored clinical trials come to fruition.
Could Cannabis be Sold Over the Counter?
The cannabis plant has been used in medicine for 6,000 years. However, there is still considerable debate around the role it plays in healthcare today. There are currently almost 400 active and completed clinical trials worldwide surrounding cannabidiol (CBD), a type of cannabinoid that makes up 40% of the cannabis plant’s extract.
Cannabis relies on CBD’s therapeutic properties, and recent studies suggest it may be useful in combating a variety of health conditions, such as:
- Multiple sclerosis
- Cancer side effects
As of 2019, 33 states and the District of Columbia have legalized cannabis for medical use. Its potential for pain management has led some experts to recommend it as an alternative to addictive painkillers, with one study of 13 states showing opiate-related deaths decreasing by over 33% in the six years since medical cannabis was legalized.
As the industry evolves, data is becoming increasingly important in understanding the potential of cannabis—both as a viable medical treatment, and as a recreational product. The shift away from anecdotal evidence towards big data will inform future policies, and give rise to a new era of consumer education.
Big Pharma’s Foray into Cannabis
Further legalization of cannabis will challenge Big Pharma’s bottom line, and poach more than $4 billion from pharma sales annually. In fact, medical cannabis sales are projected to reach $5.9 billion in 2019, from an estimated 24 million patients.
Seven of Canada’s top 10 cannabis patent holders are major multinational pharmaceutical companies, a trend that is not unique to Canada.
|Company Rank||🇨🇦 Canadian Patents||Company Rank||🇺🇸 U.S. Patents|
|1. Novartis||21||1. Abbvie||59|
|2. Pfizer||14||2. Sanofie||39|
|3. GW Pharmaceuticals||13||3. Merck||35|
|4. Ericsson||13||4. Bristol-Myers Squibb||34|
|5. Merck||11||5. GW Pharmaceuticals||28|
|6. Solvay Pharmaceuticals||7||6. Pfizer||25|
|7. Kao Corporation||7||7. Hebrew University of Jerusalem||19|
|8. Ogeda SA||7||8. Roche||17|
|9. Sanofi||6||9. University of Connecticut||16|
|10. University of Connecticut||6||10. U.S. Health and Human Services||13|
It comes as no surprise that many pharmaceutical giants have already formed strong partnerships with cannabis companies, such as Novartis and Tilray, who will develop and distribute medical cannabis together in legal jurisdictions around the world.
Data is the Missing Link
While the body of knowledge about the many uses of cannabis continue to grow, clinical evidence is key for widespread adoption.
Products backed by data will be a defining criteria for major companies to come into the market en masse. And ultimately, Big Pharma’s entry could accelerate public understanding and confidence in cannabis as a viable option for a range of ailments, and mark the next major milestone for the industry.
Cultivating Cannabis: The Journey from Seed to Harvest
The estimated $63.5 billion green rush has led to increased revenues in cannabis cultivation—positively impacting other industries
Cultivating Cannabis: The Journey from Seed to Harvest
Cannabis is emerging from the shadows of strict regulation, prompting the growth of a global market worth almost $25 billion today. This green rush has led to increased revenues throughout the entire cannabis supply chain—most notably in cannabis cultivation.
Such growth is rippling across industries such as energy and agriculture technology, with innovation allowing for greater scale.
Today’s infographic from Water Ways Technologies follows the journey of the cannabis plant, and explores cutting-edge technology that will fuel the future of cannabis cultivation.
Breaking Down the Cultivation Process
Cannabis is an annual plant, meaning it naturally goes through its entire life cycle in one year. However, this cycle is shortened to 3 months in commercial cultivation to improve productivity.
Plants can be grown from either a seed or a clone. The cloning method guarantees consistency, cost savings, and provides genetic stability from a disease-free source. All of these factors contribute to its popularity with commercial growers and the medical cannabis community.
Each stage requires different variables to ensure the highest standards are being met.
- 1: Creating a Mother Plant: 3 months, 4 times a year
Mother plants create an endless supply of clones, making this stage the most crucial. The mother plant starts as a seed, chosen for desirable qualities that the grower wants to replicate—like aroma, flavor, and yield.
- 2: Making a Clone: 7-10 days
Growers then take clippings from the chosen mother plant, and dip each one in water and fertilizer. They are then soaked in rooting fluid and placed in a plug (individual cell), before entering an incubator.
The clippings remain here until they finish rooting. The incubator maintains the plant’s moisture by facilitating leaf absorption.
- 3: Vegetation Process: 3-4 weeks
The clones are transferred to growing rooms and placed into a light substance similar to soil. They are moved on to flood benches—large tables that re-circulate excess water and fertilizer—which enable the optimal uptake of nutrients.
During this phase, the clones require 18 hours of light and 6 hours of darkness. There must be a constant analysis of the radiation levels to combat any damage from the artificial light source.
- 4: Flowering: 6-8 weeks
Following the vegetation process, the plants are separated into different flowering rooms. During this phase, buds grow and develop a solid cannabinoid and terpene profile. Terpenes are organic compounds that give cannabis varieties their distinctive aromas like citrus, berry, mint, and pine.
- 5: Post-harvest: 1-3 weeks
The cannabis plant is harvested once it reaches maturity. The flowers are de-budded, trimmed, and set on drying trays in a post-harvest room with low humidity, before they are ready for extraction.
This final stage requires a substantial amount of time and attention to detail, to ensure the best quality and most potent product possible.
Cultivating the Future of Cannabis
Efficiently producing high-quality, consistent cannabis will help meet growing consumer demand. Water Ways Technologies is an agro-tech company helping to propel this growth, by providing cultivators with data-driven insights from their precise irrigation system.
With a strong understanding of the full cannabis life cycle, Water Ways Technologies ensures that adjustments can be made at different stages throughout the growing process, resulting in the highest standards, and wider profit margins for investors.
Visualizing the Boom in the CBD Beverage Market
CBD-infused beverages are considered to be the fastest growing segment in the overall cannabis market. How did this partnership of brews and bud come to be?
Visualizing the Boom in the CBD Beverage Market
It’s safe to say that the cascade of cannabis legislation has sent the world into a constant state of flux. We are witnessing a seismic shift in culture, as cannabis steps out of the black market and into unexpected industries—from big pharma, to beauty, and now to beverages.
According to Zenith Global, the U.S. CBD-infused drinks market will reach an estimated $1.4 billion by 2023, making it one of the fastest-growing segments in the overall industry.
Today’s infographic comes to us from Trait Biosciences, and outlines the magnitude of the CBD-infused beverage segment, along with some of the subsequent challenges and opportunities that will shape the future of cannabis.
CBD and its Benefits
CBD is an abbreviated term for cannabidiol, a type of cannabinoid that makes up 40% of a cannabis plant’s extract. It has become increasingly popular for relieving pain, promoting relaxation, and lifting mood without the psychoactive properties that come with THC (Tetrahydrocannabinol), the other major cannabinoid.
Recent studies suggest that CBD’s properties may be useful in combating a variety of health conditions such as epilepsy, schizophrenia, multiple sclerosis, migraines, arthritis, and even side effects of cancer.
The New Wave of Beverages
CBD-infused beverages will open the floodgates to new audiences who want to consume cannabis in different formats. They have many benefits, that will rival other methods of ingestion:
- Easy to Administer
Beverages are seen as the healthier way to consume CBD, especially compared to smoking.
- More Accessible
They are becoming more easily available in restaurants, bars, supermarkets, and online sites.
There is some evidence to suggest that CBD in caffeinated products can curtail the feeling of being on “edge”.
- Higher Precision
Dosage is controlled and, much like alcohol, consumers will be able to determine how much CBD content they want.
Both alcoholic and non-alcoholic product categories are currently being explored, resulting in some unexpected partnerships, such as Molson Coors—the world’s seventh largest brewer—and Hexo Corp, a Canadian cannabis product company.
Trends Shaping the Future of CBD Beverages
The CBD product landscape is constantly evolving. Demand for CBD-infused beverages will be fueled by three key trends.
- Changing Consumer Preferences: The decline of alcohol sales globally is evidence of changing consumer tastes. Sales are expected to fall further as more people exchange alcohol for cannabis products.
- Product Innovation: Sustainable packaging, transparency around ingredients, more convenient ready-to-drink solutions, and personalized strains are driving the furious pace of product innovation.
- Big Players and Influencers: Growing knowledge and increasing brand/celebrity endorsements are creating an established CBD industry in mainstream culture. Already, singer Willie Nelson and former NFL star Terrell Davis have put their names to two seperate lines of CBD-infused beverages.
As these trends evolve, consumers will benefit from more education around CBD, which could lead to more CBD products, like beverages, entering the mainstream across numerous industries.
What’s Next for the CBD-infused Beverage Market?
CBD purity is a primary focus area of current scientific studies. For consumers, more transparency is needed around ingredients, dosage levels, and product labeling. For example, the state of Indiana now mandates that manufacturers must label CBD products with QR codes that can be scanned to show whether they contain acceptable levels of THC, CBD, pesticides, and other compounds.
Most notably, new methods of CBD infusion will transform the beverages market. Many industry players have used nano-emulsion to infuse CBD. However, these fat-based nanoparticles have been known to accumulate in organs, causing health concerns. That’s why creating water-soluble CBD has been an emerging industry priority.
CBD-infused beverages are poised to become the next big thing and create massive economic growth—despite strict industry regulations. Scientific advancements and changing laws will unlock the potential of the CBD market, potentially disrupting the entire beverage industry.
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