Today the FDA is holding a hearing to determine how the regulatory body will manage the rules and restrictions surrounding CBD.
Attending the hearing will be a number of cannabis advocates, including manufacturers, consumer, health care providers and other analytics to provide a sweeping overview of the impacts that CBD and the many products derived from it, can play in the open marketplace.
Recently estimates on Wall Street state that the current $1 billion CBD industry could grow to $16 billion by 2025, depending in the level of regulation.
Last year the FDA and the DEA both approved for the first time, a CBD-based drug, Epidiolex, for the treatment of childhood epilepsy.
CBD has anecdotally been associated with many health benefits including combating pain, anxiety, inflammation and opioid withdraws.
Since the 2018 Farm Bill was passed in December of 2018, legalization the production and Hemp and Hemp based products, including hemp-derived CBD oil, hundreds of new products have popped upon the marketplace in everything from food and beverages to supplements and skin creams.
As the market and public interest in CBD products has grown, many cannabis companies have enjoyed enhanced stock performance as well as driving a number of billing dollar mergers and acquisitions.
In February former FDA Commissioner Scott Gottlieb suggested the agency would take a flexible approach to monitoring CBD products. But Gottlieb left the FDA in April. His successor has not yet been announced. Ned Sharpless, the acting FDA commissioner, is leading the meeting Friday.
The results of today’s meeting could have lasting impact. If the FDA decides to strictly regulate CBD, the scope of products using the compound could become restricted, hence placing a burdensome bottleneck on the overall market.
Given that possibility a number of major cannabis stocks took a hit in trading including Tilray, Canopy Growth and Cronos.
HT – BI