Scientific publications are multiplying – exploring many more therapeutic applications for conditions such as diabetes and arthritis – and finally providing clinical proof to some of the effects that have been observed for years.
There are several reasons: first, it’s slow and expensive to produce and extract from cannabis plants, second, it is hard to control its dosage: a 2020 FDA study found that more than half of consumer CBD products differed greatly from what was written on the label.
So if the technology is ready and regulations are favorable, why isn’t it already done? One key reason is that the production requires particular biomanufacturing facilities, and they are not evenly distributed around the world.
Europe has been a pioneer in pharmaceutical, chemical and food industries.
On the regulatory front, the European Court of Justice recently clarified that CBD wasn’t a narcotic under European law, and the European Commission designated CBD as a novel food in 2019.
Investors are taking notice, ranging from dedicated early stage funds to larger VCs.
For now, the industry got its headstart with traditional cannabis farming, and one can only guess if the biomanufacturing approach lives alongside it or overtakes it.