Cannabis is a hot industry at the moment and it is demanding the attention of a lot of investors. Some of the cannabis stocks on the ASX have performed remarkably during 2020 on the back of innovative product candidates.
The cannabis market is estimated to grow by over 30% into a $40 billion market by 2023. Much of this will be led by the USA and Canada. During September 2020, the TGA down-scheduled cannabidiol (CBD). This allows Australian patients to purchase CBD products from a pharmacist over the counter.
Govern how cannabis stocks have performed recently, the tailwinds in the industry, and the market size that has been increasing, here are some of the top cannabis stocks on the ASX
The Moorabbin based company that is an innovator and developer of medicinal cannabinoid pharmaceutical products with global export capability. IHL is currently undertaking 4 significant clinical programs to develop 4 uniquely formulated products in its relentless pursuit of FDA registration and market exclusivity over the following indications:
Obstructive Sleep Apnoea (‘OSA’)
Traumatic Brain Injury (‘TBI’)/Concussion
Sepsis Associated Acute Respiratory Distress Syndrome (‘SAARDS’)
Temporomandibular Joint Disorder (‘TMJD’)
All of these markets have high total addressable markets and Incannex comes with immense potential.
Creso Pharma Limited is an Australia-based company engaged in developing cannabis and hemp-derived therapeutic-grade Nutraceuticals and Medical Cannabis products with a range of applications in both human and animal health.
This ASX cannabis stock has a global presence already and holds assets in Australia, Canada, and the USA. This year, the company continued expanding its global presence and it purchased a stake in the emergent Israeli cannabis space. Additionally, Creso Pharma obtained a second purchase order from a South Africa-based subsidiary of Lupin (NYSE:LUPIN). This brought a lot of attention to the stock among Australian investors.
Little Green Pharma has been manufacturing medical grade cannabis products in Australia since August 2018. The medical cannabis preparations provide various THC and CBD profiles and are currently available as LGP Classic medicinal cannabis oils. These medicinal cannabis oils are manufactured from a whole plant (full spectrum) extract together with medium-chain triglyceride (MCT) oil.
They have been granted a Good Manufacturing Practices license by the Therapeutic Goods Administration. With the new grant, Little Green Pharma now holds more than 20 state and federal operating authorisations.
According to the announcement, the company is now the only ASX medicinal cannabis share able to manufacture TGA GMP-grade medicinal cannabis flower and oil products in-house for delivery into Australian and European markets. Little Green Pharma is an ASX cannabis stock to keep a close eye on.
Bod is a Sydney based cannabis company with a global presence. They collaborate with manufacturing firms to provide GMP pharmaceutical grade medicinal cannabis. Bod’s products are now available in Australia and the UK. Recently, they received an order from its exclusive global partner, Health & Happiness Group for 4 Swisse Wellness branded hemp seed oil products that will be sold in Italy.
Bod has thus also entered the Italian market with a deal that is worth over $1 million. They continue to push their sales and marketing efforts and are introducing 9 new products into the UK and European market. With manufacturing now underway, we expect them to hit the shelves in the coming months.
The medical marijuana industry has undergone a reckoning with reality over the last couple of years which has resulted in more realistic valuations than in the early, exuberant days post legalisation. With so many cannabis stocks on the ASX, it is important to consider what products are closer to commercialisation and how big the markets are for the treatments that are being rendered. Find out what cannabis stocks our analysts are recommending by contacting Shares in Value