As different as they may seem, there’s some overlap between the cannabis industry and biotech that’s worth understanding as an investor.
Both of the companies I’ll analyze today conduct their business within these overlapping regions.
Epidiolex revenue is ramping up sharply; sales rose by 32% year over year in Q2 to reach $155.9 million.
Aside from its undisclosed programs, it has several other clinical-stage projects investigating the cannabinoid mixture called nabiximols for conditions like multiple sclerosis .
So, if Jazz’s candidates can succeed where other therapies have failed, it’ll be able to claim a market-leading position relatively easily, and that’s exciting.
Before its acquisition of GW Pharmaceuticals, where most of its cannabinoid pipeline originated, the company developed a handful of drugs for applications in oncology and neurology.
Helping other businesses make more money is an effective and time-tested strategy, and that’s exactly what 22nd Century Group does with its cannabis genetics platform.
That’s a hotly desired capability among cannabis growers, as it helps them to get more out of their limited cultivation space without increasing the required labor or cultivation footprint.
Increasing cannabinoid yields could be a major part of the solution to that problem, as less plant matter would be needed to generate the same quantity of cannabinoids.
Companies won’t need to spin up as much new cultivation space to keep up with demand if they can count on higher yields.
If everything goes according to plan, the company will also start to register an increasing amount of revenue from licensing its genetics technologies throughout 2021 and beyond, putting it on the path to profitability.