The cannabis market has earned a reputation among enthusiasts as a potential key to unlocking improved treatments for serious diseases, like cancer. That said, the US Food and Drug Administration (FDA) issued a warning on Wednesday (November 1) for all companies to restrain from marketing “products derived from marijuana” as cures or treatments for cancer.
The warning comes in the wake of certain companies claiming their products are able to treat or cure cancer. While the FDA accepts that cannabidiol (CBD) is used for several types of products in the market, the agency hasn’t approved it as part of any “any drug product for any indication.”
Cannabis analyst at 420 Investor Alan Brochstein told INN in an email, companies need to be “very careful” to not make any health claims with their products.
Alongside the general warning, the FDA issued official complaints against four business relating to the misleading marketing of their products. Greenroads Health, Natural Alchemist, That’s Natural! Marketing and Consulting, and Stanley Brothers Social Enterprises LLC, all received these complaints.
Brochstein told INN he is not aware of any time a publicly traded cannabis company has been called out by the FDA. Brochstein also said he is generally skeptical of companies in the public market focused on CBD.
In its notice, the FDA shared examples of the types of claims it intends to prevent, including lines claiming CBD “combats tumor and cancer cells.” The agency also included a claim saying “non-psychoactive cannabinoids like CBD (cannabidiol) may be effective in treating tumors from cancer – including breast cancer.”
Established hemp company receives warning
Brochstein further noted the warning sent to Stanley Brothers Social Enterprises LLC, relating to the CW Hemp company, selling products based on “hemp genetics,” whom he called “pioneers.”
The FDA signaled the “Everyday Dietary Supplement,” “Everyday Plus Dietary Supplement,” “Everyday Advanced Dietary Supplement” and “Charlotte’s Web Gel Pen” products as the direct target of their complaint against Stanley Brothers Social Enterprises LLC.
In its letter addressed directly to Joel Stanley, chief executive officer of the company, the FDA said these products would be classified as “new drugs” with no prior approval.
“When people are allowed to illegally market agents that deliver no established benefit they may steer patients away from products that have proven, anti-tumor effects that could extend lives,” FDA commissioner Scott Gottlieb said in the statement.
CW Hemp did not immediately reply to a request for comment by INN.
Lack of data has prevented more significant advancements for medical cannabis
In a previous interview with INN Dave Berg, chief technology officer for software company Strainprint, which collects data on cannabis strains for consumers, said the molecular composition of cannabis has made it complicated to study in a more traditional way.
“[I]t’s been very difficult for people to study cannabis in a clinical way, but there’s been a ton [of] observational data that clearly people have said ‘you know this is great for my arthritis, this is great for my tendonitis, this helped me through my cancer treatments or others.’
A lack of medical research data has slowed down discoveries relating to the medical elements of CBD and tetrahydrocannabinol (THC).
“There’s no really strong observational data set that allows us to make proper decisions,” Berg added.
Back in August the deputy commissioner for policy, planning, legislation, and analysis for the FDA Anna K. Abram sent a notice requesting comments on the benefits of CBD alongside other substances.
“CBD has been shown to be beneficial in experimental models of several neurological disorders, including those of seizure and epilepsy,” the document indicated.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).