Cannabinoids – Investors See Green
Momentum Public Relations
The current debate in Canada around legalizing or decriminalizing the use of marijuana is highlighting potential for mainstream investors to capitalize on opportunities being created by companies who are pioneers in developing medical products made from cannabis. The recent election of the Trudeau government has triggered anticipation that important reforms and regulatory changes will be introduced to fulfill promises that were included in the Liberal Party’s platform.
Scientists today have a better understanding of how the various molecules and compounds in cannabis trigger a response in human beings. This is permitting new classes of pharmaceutical products to emerge offering investors opportunities that eclipse the returns that can be generated in some of the more mature pharmaceutical segments.
InMed Pharmaceuticals (IN:CSE) http://www.inmedpharma.com is a leader in a growing segment that is seeking to identify new bioactive compounds in cannabis plants that may interact with certain genes that cause specific diseases or medical conditions. Their pioneering research is opening the door to new therapies that meet the needs of patients who suffer from a variety of illnesses including debilitating dermatological conditions and ocular nerve disorders like glaucoma. These new therapies are expected to generate substantial returns for investors.
Marijuana, in its many different forms, contains a variety of active ingredients. One of these ingredients, perhaps the most well known entity, is a cannabinoid known as tetrahydrocannabinol or THC. This is the primary psychoactive compound of cannabis. THC was first synthesized by Dr. R. Mechoulan at Jerusalem University in 1964. Since that time researchers have identified and isolated at least 85 different cannabinoids from cannabis, each with its own effects. Opportunities to investigate these effects and produce useful therapies is creating a potential pipeline of commercially viable pharmaceutical products as a result of the evolving public perception, advances in scientific knowledge and changes in laws and regulations
For most of the 20th century, marijuana was classified as an illegal drug in most jurisdictions in North America and Europe. It’s use, in a number of forms, was partially revived in the 1960’s as part of a counter cultural movement. Despite a well documented history of medical applications that date back to 2500 BC, the more recent mainstream public perception of cannabis was limited to publicity that highlighted the various negative consequences of smoking marijuana. This perspective, and the laws that were enacted that criminalized the possession of quantities of cannabis in any form, created an environment that impeded serious scientific investigation of its potential medicinal properties.
The use of cannabis in medicine is not a recent phenomenon. It actually pre-dates recorded history. There is clear evidence that a number of medicinal properties were well understood by Chinese emperors, Egyptian Pharaohs and Greek Philosophers. It was used by physicians in ancient times to treat ailments as diverse as glaucoma, gout, indigestion and anxiety. Eventually a debate about its use emerged among physicians. Around 900 AD two highly respected Islamic doctors had widely disparate opinions on the usefulness and efficacy of marijuana.
Eventually cannabis emerged in North America, primarily in the form of hemp. Two of the founding fathers of the United States of America, George Washington and Thomas Jefferson, both highly curious scientist-farmers, carefully documented experiments that they conducted in growing hemp and investigating a variety of medicinal uses for it.
At the beginning of the 20th century there was a movement to regulate and classify any product that made a medical claim. In 1906 President Teddy Roosevelt signed the Wiley Act into law. This legislation became the foundation for future food and drug related regulation. The objective of politicians and the medical community was to regulate or ban products that made health related claims but lacked any scientific credibility or were proven to be dangerous.
Marijuana, and its chemistry, was not well understood in that era and efforts were made to determine if it had helpful medicinal properties or if it was highly addictive. By the 1930’s there was considerable discussion around marijuana. In 1940 a committee of medical practitioners was established by the state of New York to study its use and effects. This was known as the “LaGuardia committee on the use of marihuana” (note the different spelling). The report that was produced in 1944 did not provide a clear recommendation on restricting its use. It did suggest that there was no evidence that that it was addictive or led to other more serious addictions.
“The practice of smoking marihuana does not lead to addiction in the medical sense of the word. The use of marihuana does not lead to morphine or heroin or cocaine addiction.” – LaGuardia committee report on the use of Marihuana (1944)
Nonetheless, the fact that cannabis was not treated as a legal compound led to an underground trade for recreational purposes. This discouraged investigation by medical researchers within the scientific community throughout most of the late 20th century. However, this is changing rapidly in the 21st century.
With accelerated scientific knowledge fueled by technology and communication, cannabinoid science is emerging into the mainstream. Scientists and medical professionals are already participating in trials that are being conducted to test new compounds from cannabinoids. Additional medical advances cannot be not far behind. Additionally, the anticipated change in the regulatory environment can only further fuel opportunities.