Should Big Pharma Buy Into the Medical Marijuana Industry?

Source: Flickr user Mark

Few stories were as captivating to investors as medical marijuana in 2014. The promise of using marijuana to treat common conditions like cancer pain and uncommon indications like epilepsy created a flurry of investor interest that sent shares in marijuana stocks soaring.

However, just because medical marijuana's use is intriguing doesn't mean that these companies will deliver on investor's optimism. Most marijuana drugmakers are small companies that may struggle to come up with the financing necessary to usher treatments through expensive clinical trials. That could suggest that they need to ink licensing deals or be acquired by big pharmaceutical or biotechnology companies. Whether or not big drugmakers would be interested in pursuing such opportunities is an important question, so we asked two Motley Fool analysts for their opinion. Read on to learn whether they think big cap companies should buy into the medical marijuana industry.

Brian Orelli: Should big pharma get into the medical Pacific yew tree industry? How about medical poppy business?

Trick question. They already are.

Bristol-Myers Squibb's (NYSE: BMY  ) cancer drug Taxol was discovered in the Pacific yew tree. Opiate pain killers such as morphine and codeine are found in opium poppy. There are plenty of other examples of useful drugs that were derived from plants as well.

It's pretty clear there are useful chemicals -- cannabinoids called CBD and THC -- in marijuana. GW Pharmaceuticals' (NASDAQ: GWPH  )  Sativex, which is a mixture of CBD and THC, is approved in a few countries to treat spasticity in patients with multiple sclerosis and cancer and its CBD-based drug candidate Epdiolex appears to be helping pediatric epilepsy patients without any other options.

There are certainly risks associated with cannabinoids, but for indications where there's a high risk of death and no other options, the risks become secondary to the benefits.

I don't see any inherent reason why big pharma shouldn't be trying to study the same pathways except for the stigma of marijuana. Companies could get around the issue by synthesizing the active compound directly rather than deriving it from the plant. AbbVie's (NYSE: ABBV  ) Marinol, for instance, is synthetic THC, which is FDA approved to increase appetites of patients with AIDS and is also used off-label for cancer patients.

Leo Sun: Investing in medical marijuana doesn't make sense for the biggest pharma companies because it's simply not that profitable.

For example, GW Pharmaceuticals' (NASDAQ: GWPH  ) flagship cannabinoid medicine, Sativex, has been approved or recommended for approval in 24 countries as a treatment for severe spasticity caused by multiple sclerosis. Despite that impressive geographic reach, Sativex only generated £3.4 million ($5.3 million) in revenues in the first nine months of fiscal 2014.

GW's pipeline of treatments includes drugs targeting potential type 2 diabetes and schizophrenia indications. While there are a number of interesting opportunities in its pipeline, it's still too early and unproven for me to feel confident in its pricey valuation -- over 20x trailing-12 month revenue.

And with cannabinoid drugs like Sativex not selling well, combined with pricey valuations for current so-called 'marijuana stocks', I don't see a compelling reason for big pharma to throw money into acquiring these drugs or their developers. Big pharma needs, well, big revenue streams to move the needle -- and these cannabinoid drugs just haven't provided that, at least not yet.

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Brian and Leo do not have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Marijuana firm's arrival stirs fear of clinics-for-hire

A New York company is putting down roots in Minnesota by building up a network of doctors and clinics to put patients in line for medical marijuana — a business model that state officials had hoped to avoid.

MarijuanaDoctors.com is coordinating with doctors in Minnesota to set up clinics designed to give patients the sign-off required to register with the state to buy the new medicine. The first clinic, in Bloomington, filed its business registration forms this week. The company's chief operating officer, John Nicolazzo, said three others will get started on Monday, with a dozen total planned.

Nicolazzo told The Associated Press on Thursday the company is merely trying to fill a void in Minnesota, where many doctors, clinics and hospitals are wary of taking part in registering patients for an expected July launch. His company has already done much the same in other states preparing medical marijuana programs.

But the state is on the lookout for quick-approval operations that may skirt the state law meant to ensure patients are certified to get medical marijuana only from doctors with whom they have a medical history. One doctor helping Minnesota write regulations for its program said he thought the clinics spearheaded by MarijuanaDoctors may be "preying upon anxious people who want an answer today."

Nicolazzo rejected the suggestion that the clinics working with his company would violate any state law.

"Without us, there would be literally thousands of patients who would not be able to locate doctors that are willing to write a medical cannabis rec," he said in an interview. "Without a company out there that is educating doctors ... this program wouldn't see the light of day."

MarijuanaDoctors itself is not applying with the state to certify patients, but working in the background. The Minnesota facilities coordinated by Nicolazzo's company would operate much like the 486 doctors and clinics MarijuanaDoctors has partnered with nationwide.

The company provides initial startup help, access to a backend patient scheduling system and, in some cases, some marketing assistance. In turn, the clinics pay between about $300 and $900 in monthly fees, Nicolazzo said.

Nicollazo said MarijuanaDoctors worked hard to follow Minnesota law. He said each of the 12 groups his company is working with has a specialist in one of the nine conditions that qualify for the program.

The first to pop up was the Minnesota Certification Clinic in Bloomington. Its website — promising "convenient" approval for the program — provided a glimmer of hope for Shelly Rapp. After her 18-year-old son Scott's neurologist declined to fill out the necessary forms to buy medical marijuana to treat intractable seizures, it seemed promising.

But a high charge -- $250 for the first appointment -- and questions about whether the state has approved the clinic has her on edge about the appointment she scheduled later this month.

"If I can get a certification, I absolutely will," she said. "If it's not legitimate, there's no way."

A person who identified himself as one of two state-licensed physicians behind the Minnesota Certification Clinic, but would not give his name, declined an interview with the AP on Thursday.

Manny Munson-Regala, an assistant commissioner at the Minnesota Department of Health, said the state is still reviewing applications from health care providers but couldn't confirm whether the Minnesota Certification Clinic — or any specific group — was still pending.

The state wants to ensure that doctors giving patients the go-ahead are taking care of them in the long term, and not providing "certifications for hire," Munson-Regala said. He urged patients seeking a doctor's approval to ask any provider whether they have been OK'd by the state before paying money at an appointment.

Dr. Charles Reznikoff, a physician who helped Minnesota write its rules for the program, said Marijuana Doctors' model clearly violates the spirit of Minnesota's law. He cautioned patients anxious to try medical marijuana not to leave their doctor in order to get another's approval.

"It shouldn't be just a one-stop visit to be certified for cannabis, and then 'See ya later,'" he said. "Don't leave a doctor you otherwise like because of this. It won't be worth it."

Online research of MarijuanaDoctors and top executives found that four company employees, including Nicolazzo, were arrested in Nassau County, New York, last year after police found marijuana and cocaine in their company van during a traffic stop.

One employee was later fired for carrying the cocaine, which Nicolazzo said the company's executives didn't know about. Nicolazzo said he and another co-founder each served community service for having marijuana.

Slowly Does It: Buy Cannabis Oil South Africa

Southern Africa Is Responding To Demand For Medical Marijuana Despite joint efforts to eradicate marijuana from the police in Malawi seems to be losing the battle against wily growers and smugglers. Malawi is the second largest marijuana producer in Africa, which occupies an increasingly significant part of the global cultivation according to the UN. One of the reasons is that tobacco yields less on world markets. BRIAN LIGOMEKA. OCTOBER 30, 2003 Recently six drug smugglers with 28 large bags of marijuana held at a cemetery in Nkhotakota. The charge was apparently on his way to South Africa through a series of trucks, ambulances, ferries and coffins. The six were discovered after villagers began to worry about the desecration of their cemetery. Despite the arrests, the other farmers in Nkhotakota are not likely to abandon the cultivation of cannabis, because it brings much more than tobacco, the main cash crop in the country. Tobacco prices are very low on the world market. What other crop brings me otherwise more money? asks a 42-year-old farmer who prefers to remain anonymous for fear of arrest. To escape the police, most hashish growers sought refuge in the remote mountain areas where there are no good roads. The police have received tips that some major drug groups are hiding their marijuana in the sprawling tea, coffee and sugar plantations. Police spokesman George Chikowi describes how resourceful traders. They carry the stuff in coffins in hearses and ambulances also use them to get past roadblocks and escape checks. Some drug barons buy young police officers and ask them to transport hashish in police transportation. The agents take the risk and use a cemetery as a warehouse or distribution point. According to Chikowi the police want to conduct a total war against the illegal trade and aircraft of the South African police or army hired to destroy marijuana plantations in the remote corners of the country. The police need planes and helicopters because the plantations are not accessible by road. It is their intention for cultivation, consumption, supply and transportation of marijuana that government wants to completely eradicate. For that we need cars and researchers who want to stay a few months in the bush where hashish is grown. Despite transport difficulties the police have already conducted several raids. Late last year they raided farms in the districts of Nkhotakota and Mzimba in the center and north of the country. It destroyed more than hundreds of thousands of marijuana plants, representing more than 61 tons of drugs. A report by the United Nations Development Programme UNDP shows that in Malawi grown to at least 156,000 hectares of marijuana. A study by Peter Gastrow of the Institute for Security Studies in Pretoria on the trafficking of cannabis in southern Africa, says that South Africa is the fourth largest producer of marijuana in the world. In 2000 the South African police, the report lay hands on 718,000 kg - 16 percent of what the world is seized. In 2001, another 496,000 kilos withheld is worth about 55 million euros. The UN found that between 1999 and 2000, nearly a quarter of all cannabis was seized in southern Africa. In 2000, the major global increase was mainly the result of seizures in some African countries, particularly South Africa (718 tons), Malawi (312 tons) and Nigeria (272 tons). The UN concluded that Africa's share had risen in the global catch of about ten to 32 percent and the share of North and South America fell from 80 to 61 percent. Global demand for cannabis thus appears to rise and supply increases correspondingly, especially from Southern Africa. In Malawi, the fight against the cultivation of marijuana also complicated by the rastafaris that has the Government urging to legalize the drug. The rastafaris seek the support of the National Ombudsman of Malawi. Which should help their 'dagga' to get legalized, part of them according to their religion. Nobody should hide behind religion to violate the laws in this country, says the government. But some Rastafarians stated in court that they continue to smoke hashish long as the constitution of Malawi recognizes freedom of religion, although the court aren't wanting to hear any of it. Curiously enough, the Rastafarians have an ally in the ruling party, the United Democratic Front. Joe Manduwa, MP and former agriculture minister asked parliament a while ago to legalize cannabis to increase the foreign income of the country. It is high time that Malawi have resorted to growing marijuana to gain more revenue from abroad. His proposal was immediately scuttled by his colleagues in parliament. Meanwhile cannabis oil still continues to be used as medicinal treatment in the effective cure of cancer throughout the world.

Buying Medical Marijuana | The difference between Hemp and Cannabis Oil

Home » Buy Cannabis Oil   Buy Medical Cannabis Oil - CBD oil   There are several types of cannabis oil available, such as CBD oil, which have been manufactured in different ways, from different cannabis strains or from different parts of the plant. And sometimes different types of oil have been given the same (incorrect) name which doesn't make it easier to choose what medical cannabis oil is best to buy. In this information section we will try to create some clarity.    Difference between cannabis, hemp and marijuana  Hemp and marijuana plants are not the same, but  they belong to the same family so they are both cannabis plants. Therefore, cannabis can be both hemp and marijuana.    THC and CBD The biggest difference between hemp and marijuana is that hemp hardly contains any THC, the psychoactive ingredient that causes a stoned or high feeling. This ensures that hemp plants can be grown, sold and used legally. The extremely low THC content is offset by a higher CBD content. Both cannabinoids have their own medicinal benefits.    What cannabis oil to buy To fully take advantage of the beneficial effects of cannabis, there are different types of medicated oil produced. As a collective name medical marijuana oil, hemp oil or weed oil are also used. In our store and on our website, however, we try to make a clear distinction to minimize confusion.    The names that generate confusion we have mentioned "incorrect names" with orange letters in the schedule below.    Type of oil (Other names / Incorrect names) Status  Marijuana oil THC oil, Cannabis oil, Rick Simpson oil, Hemp oil  Not Legal  CBD oil Hemp oil, Hemp leaf oil, Cannabis oil, Golyoli, Marijuana oil  Legal  Hemp seed oil+  Hemp seed oil plus, HZO+, Hemp oil  Legal  Hemp seed oil Seed oil, Hemp oil  Legal   What is medical marijuana oil?   Medical marijuana oil, also called cannabis- or THC oil, is derived from all parts of the marijuana plant and mostly contain high concentrations of THC. Especially the buds of the plant (which are for sale in coffeeshops in Amsterdam) contain a lot of trichomes where THC is formed. THC-rich oil is not legal and therefore not for sale at Apollyon. But it can be easily made: Make your own cannabis oil    What is CBD oil?   Cannabidiol oil is extracted from all parts (leaves, flower buds, stems) of the hemp plant and therefore also known as hemp oil. Because of the powerful effect and because of the legal status, this oil is increasingly becoming more popular, and is available in various forms. Further down the text more detailed info will follow.    What is hemp seed oil? Hemp seed oil is extracted from seeds of hemp plants and does not have the powerful proportions of marijuana oil and CBD oil, but it does offer tremendous benefits for our body. Seed oil contains many beneficial vitamins, minerals and fatty acids in just the right composition and it ensures a well functioning immune system.    What is hemp seed oil+ Hemp seed oil plus is regular seed oil with extra THC and CBD added, so this product has beneficial properties of both the healthy ingredients of hemp seed,  hemp and marijuana. However, the THC content is remained below the legal limit, so it can be sold legally.    Because of this addition hemp seed oil+ has a slightly medicinal effect and may be well used as an adjunct to treatment with marijuana oil or CBD oil. The hemp seed oil+ is creating a base layer of THC and CBD, whereby you simply need  to use less medical cannabis oil.   What CBD products to buy? In our wide range of CBD the products are first divided into type of product followed by manufacturer or brand name. A distinction is made in cannabidiol oil which you can buy in drops, spray bottles, as an e-liquid or in capsule form. And there is a classification by brand name, such as Mediwiet, RSHO, Hemp Honey, Cannabios or Endoca.    All products that you can find by manufacturers are also divided by type of product, so you can find the same products in both classifications! And to make it extra easy to choose, there are also complete starter kits for sale.   CBD Products CBD Manufactures    CBD Starter Packs  Pure CBD  CBD Drops  CBD Spray  CBD Capsules  CBD Shot  CBD-rich Hemp  CBD Cream  CBD Body Care  CBD Sunscreen  CBD for Babies  CBD for Pets  CBD Edibles  CBD Chocolate  CBD Vaporizers  CBD-E-Liquid  -  -      Mediwiet Foundation  Hemp Honey  Natures Nectar  Elixir of Life  RSHO  Endoca  Cibdex  Hempotion  HempVap  Tast Hemp Oil  Canebe  Casa Luna  CannaPower  Gevitta  CanChew  Cannabios  Trompetol  Cibaderm     Difference in CBD content  In the products themselves is a considerable difference in cannabidiol content. In the schedule below, the products (only the drops, spray, and syringes), are divided into medium and high levels. However, the products with average levels also have powerful effects. It is just testing which product works best for you.   Average percentage High concentrated    CBD Oil Mediwiet  Hemp Oil CBD Endoca  CBD CBDa Oil Endoca  CBD Oil Hempotion  CBD Oil Tasty Hemp  CBD Oil Canèbe  CBD Oil Master Massage  CBD Spray Cibdex  CBD Spray Peppermint Cibdex  CBD Spray Vanilla Cibdex  CBD Vitamin Spray Gevitta      Pure CBD Oil Hemp Honey  Pure CBD Oil Natures Nectar  RSHO Blue  RSHO Gold  CBD Hemp Oil Endoca  CBD Hemp Oil Endoca             CBD-content in capsules  In the capsules, the concentration of cannabidiol classified as follows:   Low percentage Average percentage High concentratie    Canebe capsules  Hemp Seed Oil+ capsules      Cibdex capsules  -      Hemp Honey capsules  Nature's Nectar capsules     Where can you buy medical marijuana oil? The medicinal CBD oil, also called golyoli, and the hemp seed oil+ are both available at Head Shop Apollyon. The hemp seed oil+ is available in 100cc and 250cc bottles.   - Medicinal CBD oil- Headshop Apollyon - Hemp Seed Oil+ (THC + CBD)- Headshop Apollyon - Medical Marijuana Oil   - Mediwiet Foundation (Only Dutch patients)   Buy CBD oil (Golyoli) online CBD oil is processed into various products based on hemp oil so your body stays healthy and ailments and disorders are contested. To buy, click on link --- >> CBD oil << ---    Buy CBD oil in Rotterdam (79 km from Amsterdam CS) Besides the ability to order products online, you can also buy all the CBD products in our store in Rotterdam South (Dordtsestraatweg 434A). The store is located near shopping mall Zuidplein and Ikazia Hospital and is easily accessible by public transport. Free street parking is available.       Wide range CBD oil products  Besides the medicinal oils from Mediwiet, Health Shop Apollyon also offers medicated CBD products from other manufacturers, including RSHO, Hemp Honey, Nature's Nectar, Trompetol and Endoca.