By Justin Spittler, editor, Casey Daily Dispatch
The marijuana industry will change forever on June 27.
So much so, it could be years before marijuana stocks are cheap again.
I know that’s a bold claim… But I don’t make it lightly.
So, why do I think this? Well, it’s simple really. On that day, the Federal Drug Administration (FDA) is expected to approve its first ever cannabis-based pharmaceutical drug.
This announcement will signal a major paradigm shift in how the government thinks about cannabis, which could send billions of dollars rushing into marijuana stocks.
In a minute, I’ll tell you how to position yourself for this historic event. But first, let me tell you about the revolutionary drug that is likely to be approved just six weeks from now.
• It’s called Epidiolex…
It’s a cannabis-based drug being developed by GW Pharmaceuticals.
GW is a giant pharmaceutical company based in the United Kingdom. It’s been studying the medicinal benefits of cannabis since 1998.
Epidiolex would be used to treat forms of childhood-onset epilepsy, Dravet syndrome, Lennox-Gastaut syndrome (LGS), and other treatment-resistant forms of epilepsy.
But here’s the thing. Epidiolex doesn’t contain THC, the psychoactive compound in cannabis… It contains cannabidiol (CBD).
As I showed you in this Dispatch, CBD is a compound in cannabis. You can buy it almost anywhere in the U.S. It doesn’t get people high like THC… but it does offer many health benefits.
So, it won’t get children stoned. But it will help them cope with illness.
• On April 19, a panel of advisors to the FDA unanimously voted to approve Epidiolex…
It did so because it found “substantial evidence” of the drug’s effectiveness.
The FDA is now slated to make its decision on June 27—and all signs point to them approving Epidiolex. If they do, Epidiolex will become the first cannabis-based drug approved by the FDA for sale in the United States.
That would obviously be huge news for GW Pharmaceuticals. You see, Epidiolex is expected to generate $1 billion in sales for GW Pharmaceuticals by 2020. That would make it one of the 10 biggest drug launches of the year, according to the market research firm EvaluatePharma.
So, it shouldn’t come as a surprise that the stock popped on the news.
You can see that GWPH’s share price has surged 20% since April 19. It’s now trading at an all-time high.
Now, just to be clear, I’m not recommending GW Pharmaceuticals today. I haven’t looked under the hood yet. I’m simply using it as an example to show you how big this news is for the entire marijuana industry.
You see, an approval of Epidiolex would pave the way for the FDA to green-light other cannabis drugs…
If that happens, marijuana’s days as a Schedule I drug will come to an end. To understand why, you should know what I mean by a Schedule I drug. In short, it means that the government sees no medical value in marijuana.
Now, that may have been true years ago. But it isn’t anymore. If it were, the FDA wouldn’t be getting ready to approve Epidiolex. It also wouldn’t have just approved a cannabis trial for veterans suffering from PTSD (Post-Traumatic Stress Disorder).
• This tells us that the U.S. government is starting to see cannabis in a different light…
It no longer sees cannabis as a street drug. Instead, it sees it as a plant with tremendous medicinal benefits.
I expect the FDA to approve a lot more cannabis-based drugs after June 27. I can also promise you that Big Pharma will start putting serious money into the cannabis space.
We’re actually seeing this happen already.
Johnson & Johnson, one of the world’s biggest pharmaceutical companies, recently invited Avicanna and Vapium Medical to become part of its Canadian JLabs Innovation network. Avicanna and Vapium are two marijuana startups.
Johnson & Johnson brought these two young companies under its wing to help them grow. That tells me that they’re very interested in the space. It also tells me that Big Pharma could start investing billions of dollars in the emerging cannabis market.
This is something you obviously want to get in front of.
So, consider buying marijuana stocks if you haven’t yet. Just be sure to treat them like a speculation.
Be disciplined. Only speculate with money that you can afford to lose. You don’t need to put a lot of money into marijuana stocks to make a fortune in the months ahead.
Buenos Aires, Argentina
May 15, 2018
P.S. Casey Report editor Nick Giambruno has five marijuana stocks in his portfolio set to thrive in the years ahead. He says now is the time to bet on them… before it’s too late.
To help you take advantage of this growing industry, Nick put together a brand-new video presentation that reveals more about why marijuana stocks are set to boom… Click here to watch it now.
Have you bought any marijuana stocks recently? Let us know how it’s going right here.
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