Ray Blanco’s Pot Report: Major Buyouts Could Be Looming
I’ve mentioned previously that I believe the recent stock market correction would provide us with buying opportunities in a frothy market for cannabis companies.
Sure enough, that’s exactly what’s unfolding before us.
And nowhere is that truer than in the pharmaceutical business.
We’ve spent a lot of attention on the big trend of legalized weed in recent months. It’s a major shift that’s going to continue to throw off a ton of cash for investors.
But we haven’t talked as much about pharma. And there’s an immense opportunity in the pharmaceutical cannabis space right now.
Tackling Medicine’s Most Persistent Ailments
Study after study notes the incredible anti-inflammatory properties of marijuana.
Some of the world’s most innovative drugmakers are working hard to take those characteristics and turn them into targeted medicine for immune system diseases like cystic fibrosis, rheumatoid arthritis and scores more.
But scientists are only just beginning to get a grasp on the mechanisms behind pot’s potency as medicine.
And one of the areas medical cannabis research is making its biggest strides is with the anti-inflammatory properties of pot.
Breakthroughs in this area of research could lead to a windfall in pharmaceutical profits for companies developing cannabinoid-based drugs.
And the timing couldn’t be more perfect.
Two weeks ago the academic journal Clinical Infectious Diseases published a new study that provides fresh clinical evidence for cannabis’s use in the reduction of systemic inflammation and immune activation.
The study found that HIV patients who were heavy users of medical cannabis had major immune system advantages over those who didn’t use marijuana.
Clearly, the weight of the evidence is stacking up more and more in favor of permissive pot use for medicinal purposes.
Big Pharm’s M&As: Pot Firms Could Be Next
As the evidence continues to mount in favor of cannabis based therapies it’s clear Big Pharm can’t fight the growing tide for much longer.
Instead Big Pharm will do what they’ve always done when they’ve been on the wrong side of a fight: They’ll start buying up the research-stage cannabis drug companies that are actually doing the hard work.
Pharmaceutical merger-and-acquisition deals are up 95% year over year. That’s clear evidence that big drug companies are feeling more confident about buying up smaller firms.
And the major pharma deals in the cannabis space haven’t even started yet. A tsunami of buyouts in the medical marijuana space could be looming very soon.
Stay tuned – things are about to get very interesting.
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Chief Technology Expert, Technology Profits Daily