As evidence of cannabis‘ numerous advantages grows, so does interest from Big Pharma, the worldwide pharmaceutical business. The entry of such behemoths will fundamentally disrupt the cannabis market, which was formerly deeply stigmatized but is now a potentially game-changing source of growth for a slew of businesses.
CB2 Insights provides us with today’s infographic, which examines how and why the infamous Big Pharma is interested in the budding cannabis business.
What exactly is “Big Pharma”?
The word refers to a group of the world’s major pharmaceutical corporations considered particularly prominent. To give you an idea of their magnitude, the top 10 Big Pharma corporations have a combined market valuation of $1.7 trillion, with Johnson & Johnson being the largest at $374 billion.
Big Pharma has stayed away from the cannabis market so far, citing regulatory concerns as a deterrent. As more patents, partnerships, and funded clinical trials come to fruition, the sleeping giant’s takeover gradually intensifies.
Is it possible to sell marijuana over the counter?
For almost 6,000 years, the cannabis plant has been utilized in medicine. However, there is still a lot of dispute about its function in today’s healthcare. Cannabidiol (CBD), a type of cannabinoid that comprises approximately 40% of the cannabis plant’s extract, is currently the subject of nearly 400 active and finished clinical trials worldwide.
Cannabis relies on CBD’s therapeutic characteristics, and current research suggests it could help with a variety of ailments, including:
- Epilepsy
- Schizophrenia
- Multiple sclerosis (MS) is a disease that affects people
- Migraines
- Arthritis
Side consequences of cancer
As of 2019, cannabis is allowed in 33 states and the District of Columbia for medical purposes. Some experts promote it as an alternative to narcotic medications because of its potential for pain management. One research of 13 states found that opiate-related mortality has decreased by nearly 33% in the six years since medical cannabis was allowed.
Data is becoming increasingly crucial in evaluating the potential of cannabis, both as a viable medical therapy and as a recreational product, as the market matures. The move away from anecdotal evidence and toward big data will shape future policy and usher in a new era of consumer education.
The Pharmaceutical Industry’s Foray into Cannabis
Further legalization of cannabis will pressure Big Drug’s bottom line, stealing more than $4 billion in annual pharma sales. In fact, with an estimated 24 million patients, medicinal cannabis sales are expected to exceed $5.9 billion in 2019.
Major global pharmaceutical corporations own seven of Canada’s top ten cannabis patent holders, a trend that is not unique to the country.
It’s no surprise that numerous pharmaceutical corporations, including Novartis and Tilray, have already developed solid agreements with cannabis companies to research and distribute medical cannabis in legal areas across the world.
The missing link is data.
While the corpus of information regarding cannabis’ multiple applications continues to expand, clinical evidence is essential for general adoption.
Data-backed products will be a defining criterion for significant corporations entering the market in large numbers. Finally, Big Pharma’s participation could help increase public awareness and confidence in cannabis as a legitimate treatment choice for various diseases, marking the industry’s next important milestone.