The medical cannabis industry will reach more than $54 billion in size by 2029, according to Data Bridge Market Research, representing a 22.1% compound annual growth rate. In addition to patients turning to state medical cannabis programs, researchers continue to uncover evidence that cannabinoids could help treat a wide range of medical conditions.
BioHarvest Sciences (CSE: BHSC) (OTCQB: CNVCF) (FSE: 8MV), a pioneer in developing plant bioreactors that scale the production of active ingredients, recently announced a binding letter of intent with Royal Emerald Pharmaceuticals (REP) to supply cannabinoids to pharmaceutical companies, research institutions, and other DEA-regulated entities in the United States.
Royal Emerald Pharmaceuticals is one of only seven bulk manufacturers that the DEA allows to grow cannabis in the U.S. for FDA-approved drug-related studies.
Why It Matters: Cannabis is Reshaping Pharma
Cannabis legalization presents an existential threat to pharmaceutical companies. For instance, researchers found that more than half of nearly 3,000 self-reported cannabis users used non-prescribed cannabis to replace a prescription drug. These included pain medications, antidepressants, and arthritis medication, among others.
However, many of these individuals turn to cannabis due to the lack of efficacy in conventional pharmaceutical treatments. Research suggests that the availability of cannabis-based pharmaceuticals could become a boom to these companies, helping them provide viable alternatives to individuals that would otherwise turn to illegal substances.
REP and BHSC can offer these pharmaceutical firms consistent medical-grade cannabis products along with signature compositions patented for addressing specific indications. By growing plant cells in bioreactors, BHSC has precise control over the composition of different cannabinoids and can produce biomass at a highly attractive margin.
A Unique Technology Unlocks Value
BioHarvest’s unique technology, in which vital plant cells are grown in bioreactors, has the potential to produce different major and minor cannabinoids at increased levels of control and consistency. This could help researchers develop cures for challenges such as ADHD, pain management, sleep disorders, and anxiety that were unattainable before.
In fact, the company announced breakthrough results from its bioreactors in early November, when it produced hemp trichomes with 100x to 200x the density of plants. The CBDV and THCV contents alone in these trichomes could be game-changing, as they sell for $35,000 to $50,000 per kilogram in the open market (due to their low concentrations in hemp plants).
But for researchers, these results suggest that BHSC could scale up production of hundreds of rare cannabinoids. Each of these has the potential to treat various medical conditions, opening the door to researchers and drug makers. In addition, the company can fine-tune the mix of cannabinoids, enabling researchers to analyze the “entourage effect” in various combos.
Looking Ahead
BioHarvest Sciences (CSE: BHSC) (OTCQB: CNVCF) (FSE: 8MV) has found a way to produce rare cannabinoids in large quantities. These cannabinoids have the potential to be used to treat various medical conditions. With an agreement in place with REP, the company is well-positioned to help pharmaceutical companies and researchers unlock their potential.
For more information, visit the company’s website or complete the form below to download their investor presentation.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
