Breaking It Down
The global cannabis market alone is growing at a positively alarming pace, clocking in a projected 32.92% compounded annual growth rate (CAGR) to reach a staggering size of US$123,750,000,000 by 2027. Thanks to the Biden Administration and ongoing progressive changes in the law, cannabis is slowly but surely making its way to federal legalization, aligning with their neighbors to the north.
Although the growth of the global medical cannabis market is growing more slowly, at a projected 20.25% CAGR, what’s most impressive is the size. In 2027, the market for global medical cannabis is expected to reach US$82,190,000,000; approximately two-thirds of the global cannabis market size.
This chunk is significant because it proves that the majority of cannabis use is directly linked to its medical benefits, which leads us to our favorite conclusion…
With extremely modest beginnings in 2019, at just a US$60,000,000 market size, the global cannabis pharmaceuticals market has been skyrocketing.
A staggering 76.8% CAGR through until 2027 moves the size of this industry to US$5,800,000,000 – nearly 10,000% from 2019.
Noting that pharmaceutical grade THC and CBD can be extracted, purified and manufactured into legitimate medication opens the door for many previously under-treated conditions.
- Other various neurological conditions
This is why the bulk of our attention, when it comes to Biotech and Cannabis, is directed towards this industry. The room for growth is exponentially larger.
Let’s Talk Potential
After taking a look at the market caps of companies currently working within the global cannabis pharmaceuticals market, it’s extremely attractive to find established companies trading under the billion-dollar mark.
With products currently ongoing clinical trials to treat a US$30,000,000,000 health problem in the States alone, and a proven commercial product already retailing in Canada, Cardiol Therapeutics (CANADA: CRDL) (U.S.: CRTPF) (EUROPE: CT9) is on its way to change how people treat certain conditions… for the better.
The benefit of creating a pharmaceutical-grade, ultra-pure synthetic version of CBD, is that it appeals to a much wider demographic of patients. THC, known for its prominent psychoactive effects, is not recommended for certain types of people: patients who are too young, too old, or at inherent risk of mental health conditions such as bipolar and schizophrenia can benefit from the health benefits of CBD, unlike its psychoactive cousin, THC.
When you have the same business model, and a cost-advantage to your peer that recently got bought out for US$7,200,000,000 – people are bound to start realizing that you’re onto something.
Early-stage with room to grow? Check.
Team and board full of medical and healthcare professionals? Check.
Cost-advantage to your peers? Check.
Promising clinical trials? Check.
A product already on the shelves? Check.
All the signs are pointing to the direction of opportunity, which is something we are always looking for.
Disclaimer: Cardiol Therapeutics is a communications client of Edge Investments, and we own shares in the company.