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The Big Pharma Takeover of Medical Cannabis

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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:

  • Epilepsy
  • Schizophrenia
  • Multiple sclerosis
  • Migraines
  • Arthritis
  • 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 PatentsCompany Rank🇺🇸 U.S. Patents
1. Novartis211. Abbvie59
2. Pfizer142. Sanofie39
3. GW Pharmaceuticals133. Merck35
4. Ericsson134. Bristol-Myers Squibb34
5. Merck115. GW Pharmaceuticals28
6. Solvay Pharmaceuticals76. Pfizer25
7. Kao Corporation77. Hebrew University of Jerusalem19
8. Ogeda SA78. Roche17
9. Sanofi69. University of Connecticut16
10. University of Connecticut610. U.S. Health and Human Services13

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.

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Healthcare

Innovation in Virology: Vaccines and Antivirals

Vaccine development has grown six-fold since 1995. Learn how virology, the study of viruses, is driving innovation in the healthcare industry.

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Bar chart showing the number of vaccines approved or in development over time to highlight innovation within virology. The number of vaccines approved or in development jumped by 13% from 2020 to 2021.

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The following content is sponsored by MSCI

Innovation in Virology: Vaccines and Antivirals

The COVID-19 pandemic affected millions of people worldwide and brought renewed focus to virology—the study of viruses.

However, impact made by viruses extends far beyond the SARS-CoV-2 virus that causes COVID-19. There are 24 viruses that have each infected more than 80 million people globally, from hepatitis to influenza. 

In this graphic from MSCI, we uncover innovation in vaccines and antivirals and the related market opportunities.

What is a Virus?

A virus is a microscopic infectious agent that replicates within living cells. It may cause disease in its host. New viruses can emerge at any time as a result of mutation, or when viruses transfer from animals to humans.

Through virology, scientists are continuously finding new ways to fight against infectious diseases. Two main types of anti-infectives are available: vaccines and antivirals.

Rapid Innovation in Vaccines

Vaccines are substances designed to prevent people from getting infected with a disease or experiencing serious symptoms. 

The number of vaccines has increased dramatically over the last three decades. From 2020 to 2021 alone, the number of approved vaccines or clinical candidates jumped by 13%.

YearVaccines Approved or in Development
1995240
1996262
1997309
1998323
1999374
2000415
2001462
2002472
2003509
2004531
2005564
2006610
2007606
2008704
2009751
2010866
2011893
2012880
2013943
20141075
20151179
20161374
20171397
20181340
20191356
20201388
20211567

Data is a snapshot in time and reflects all vaccines ever approved (and not taken off the market) plus all vaccines in development as of the noted year (for which a trial has not been canceled).

Not only that, it’s possible to have shorter approval timelines. COVID-19 vaccines were approved within 11 months, much more quickly than the 2000-2020 average of 10 years.

In the time between an outbreak and vaccine development, antivirals can play a vital role.

Antivirals: The Second Line of Defense in Virology

Antivirals are drugs that slow or prevent the growth of a virus and treat disease symptoms. They are especially important tools for diseases that do not have an associated vaccine.

In 2021, there were nearly six times as many approved antivirals as there were in 1995. Not only that, antiviral uses have grown to include the potential prevention and treatment of HIV, COVID-19, and a number of other diseases.

YearApproved Antivirals
in the U.S.
Reasons for
Using Antivirals
19951012
19961012
19971212
19981313
19991613
20001813
20011913
20022013
20032113
20042113
20052213
20062313
20072413
20082613
20092714
20102714
20113014
20123015
20133415
20143715
20154116
20164416
20174716
20184917
20194917
20205319
20215720

The potential prevention (prophylaxis) and treatment of the same virus are counted as separate uses. Data is cumulative and reflects all antivirals ever approved (and not taken off the market) and all reasons ever approved for using antivirals (that have not been rescinded).

Innovation in virology—and the potential for future developments—is leading to a growing industry.

Expanding Market Opportunities

With opportunities growing and approval times shortening, more companies are entering the market.

YearCompanies Developing Vaccines/Antivirals
199566
199673
199780
199881
199987
2000111
2001125
2002140
2003154
2004144
2005146
2006163
2007167
2008196
2009203
2010230
2011237
2012255
2013277
2014289
2015310
2016362
2017392
2018374
2019370
2020383
2021484

Data is a snapshot in time and reflects all companies developing vaccines or antivirals as of the noted year. If a company stops being active in the space or ceases to exist, they are removed from the total.

As they work to develop new vaccines and antivirals, companies are conducting clinical trials for many diseases beyond COVID-19 such as respiratory infections and sepsis.

Virology is leading to a number of groundbreaking technologies and therapies, transforming healthcare along the way.

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Explore the MSCI Virology Index now.

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