Marijuana stocks are on the rise, not only in the number of available stocks but also in the market itself. With the growing awareness around cannabis and its potential uses not only in the medical field but in our everyday lives, such as cooking and natural preventative maintenance like taking vitamin C daily its no wonder its stock is going up.
Armed with this knowledge you may endeavor to start to invest in cannabis stocks and we are here to help you with making a smart choice in which stocks to invest in. By no means is this a “choose this stock for sure-fire results in the stock market” type of article. But we will show you two stocks that may have great potential to make you money in the future.
GW Pharmaceuticals (NASDAQ:GWPH)
GW Pharmaceuticals is a stand out leader in the cannabis financial sector. The company’s Sativex, a cannabis-based drug used for treating spasmodic symptoms due to multiple sclerosis, is already on the market in fifteen countries and has been approved in another twelve countries. Late-stage clinical trials are under way for Sativex in treating cancer patients not only for pain but also for decreasing the size of cancer cells making inoperable brain tumors, suddenly operable. Another phase-two study of the drug targeting treatment of spasmodic symptoms due to cerebral palsy is also in progress with preliminary results expected to be in mid-2016.
GW Pharmaceuticals is also exploring other potential uses for cannabinoids. The company has two drug candidates in clinical trials for treating epilepsy. Two late-stage studies are in progress for Epidiolex targeting two types of pediatric epilepsy (Dravet syndrome) which are the type of seizures normally triggered by hot temperatures or fever and Lennox-Gastaut syndrome, which does not respond to normal seizure medications. Results from both studies are expected in the first half of 2016. GW Pharmaceuticals also has studies under way with experimental drugs focusing on the treatment of type 2 diabetes, schizophrenia, and glioma (malignant tumor in the nervous system)
Although the company isn’t yet profitable, GW claims some financial positives that most other marijuana stocks can’t. Thanks to Sativex, it has a solid revenue stream, generating over $43 million in the last 12 months. The company’s cash position also looks pretty good, with $355.3 million in cash and cash equivalents. Also on the assumption that the above trials show progress and there is a good chance they will, expect to see this stock soar.
Insys Therapeutics (NASDAQ:INSY)
INSYS Therapeutics’ current financial position looks even better than GW Pharmaceuticals. The company made over $41 million in earnings during the first three-quarters of 2015 on $239.7 million in revenue.
One major drug drives INSYS’ financial performance currently. ‘Subsys’, an opioid itself, used for rebellious cancer pain in opioid-tolerant patients is by far the company’s biggest selling product, accounting for over 99% of total revenue. However, the reasons we feel you should watch out for Insys is not its past success with Subsys but its generic Dronabinol SG, a second-line cannabinoid drug used for chemotherapy-induced nausea and vomiting and anorexia associated with weight loss in patients with AIDS.
Dronabinol SG isn’t making a big financial impact for Insys currently although the company has a couple of developments in the works for the marijuana-based drug. A decision by the FDA is expected by April 2016 for Dronabinol Oral Solution. Insys is also to developing inhaled synthetic pharmaceutical cannabinoid products including dronabinol. Having an oral and inhaled option will strengthen its position in the market as well as potentially change Insys’ most profitable drug from Subsys (an opioid) to Dronabinol (a cannabinoid)
Another drug to keep your eye on with INSYS is their pharmaceutical cannabidiol called CBD, which won FDA Orphan Drug Designation as a potential treatment for Dravet syndrome and Lennox-Gastaut syndrome (that’s the one that is resistant to conventional epilepsy treatments mentioned earlier). This will make competition between GW and INSYS drive up the market on both shares.
These are just two options that are standouts. Keep an eye on them in 2016 and don’t wait too long to get involved investing with cannabis-related stocks and companies.
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