- Resurgence of the London Stock Exchange’s medical cannabis market
- London-listed medical cannabis companies and their market segments
- The growing presence of CBD in the UK wellness and lifestyle goods markets
Two years ago, the London stock exchange was enthralled by medical cannabis, with companies vying for a public listing.
After the initial euphoria, investors didn’t see many peaks for a year, but recent months have seen a recovery.
Companies are adjusting to adjustments in an industry that is, in a legally sanctioned sense, still in its infancy, with one chief executive referring to this market stage as “Cannabis 2.0.”
Although the United Kingdom is the second-largest medical cannabis market in Europe, its legalization in 2018 has been inconsistent.
Industry expert Prohibition Partners forecasts 47,000 patients this year and 70,000 next year.
Several companies share prices have increased significantly as a result of this development, with Oxford Cannabinoid Technologies’ share price increasing by over 70% in the first few months of the year, Celadon Pharmaceuticals’ share price increasing by 190%, and Chill Brands’ share price increasing by nearly 300%.
The complete range of London-listed medical cannabis companies provides access to a variety of market segments. Including cultivators, biotechs, CBD producers and distributors, and manufacturers of skincare and other consumer goods.
Northern Leaf raised £3 million to float Celadon and Hellenic Dynamics, giving London investors direct access.
Hellenic Dynamics, a Greek company, distributes to European markets through a German company.
Celadon grows medicinal cannabis in a GMP-certified indoor hydroponic facility.
This sanction permitted the commercial sale of its product, resulting in a value increase for Celadon.
Professor Mike Barnes, a neurologist who educates doctors about prescribing medical cannabis, says Celadon is one of a new generation of domestic producers that should provide a significant boost to the UK market by ensuring a more consistent supply.
Prof. Barnes says that the UK’s conservative medical regulatory system hinders medical cannabis expansion.
He acknowledged that the nature of cannabis makes it difficult to regulate like a pharmaceutical tablet. As the nature of each plant is affected by the numerous complex variables that influence cannabis growth.
But GW Pharmaceuticals, which is now owned by Jazz Pharmaceuticals, was the first to develop cannabis-based prescription medications. Epidiolex and Sativex were both authorized in the United States in 2018 and in England in 2019, respectively.
Small-cap biotechs are aspiring to follow in its footsteps for investors seeking the potential reward that comes with higher risk.
Oxford Cannabinoid Technologies (0.93p) is an example of a company whose share price has experienced significant fluctuations as a result of its Home Office growing license renewal and approval for a phase 1 trial of its primary pain relief drug candidate in the UK.
Ananda Developments, which has a UK cultivation facility, is launching two Phase 2 chronic pain research trials.
Broker SPAngel suggested that these trials could give prescribers and regulators more confidence.
MGC Pharmaceuticals (0.29p) is another company that has shifted its focus to pharmaceuticals. In May, patients in the United Kingdom received the first shipments of its CannEpil treatment for drug-resistant epilepsy through the I Am Billy Foundation and the ‘named patient’ request scheme.
This year, Kanabo (2p) developed a cannabis inhalation for European approval.
In addition, a medical cannabis clinic specializing in pain management was recently launched online.
CBD, one of the most well-known chemical extracts from cannabis, is an active constituent in some of these pharmaceutical products. But its greatest presence in the United Kingdom is in the wellness and lifestyle goods markets.
In the United Kingdom, sales of CBD, which can be purchased without a prescription as a dietary supplement or in cosmetics, are anticipated to reach €344 million this year and €383 million by 2027.
Chill Brands (7.4p), a cosmetics company, has regained investor confidence under the leadership of its new CEO, Callum Sommerton. The company’s balance sheet has been bolstered, and its chill.com website now offers third-party products in addition to its own branded CBD oils, tobacco alternatives, and edibles.
Cellular Goods (0.8p), a skincare company, received product promotion on Sephora’s website.
Ultimately, what we are observing in the cannabis industry resembles a pattern frequently observed in new industries as they transform and adapt, with investors needing to keep a close watch on developments to reap the potential harvest.
