NEW YORK — The United States medical cannabis market was worth valued at $5.44 Billion in 2016 and is expected to nearly quadruple in the next six years, a research company says.
According to Hexa Research the medical marijuana market is on pace to reach $19.48 billion by 2024. The industry is expected to witness swift growth during the forecast period due to the numerous medical benefits of cannabis products and the accelerating pace of legalization of such products in the United States. Hexa says its findings also indicated that the increasing demand for medical cannabis is due to the increasing ageing population.
In 2016, rising number of patients diagnosed with chronic pain has resulted in increasing use of cannabis. The report estimated that the demand for medical cannabis for arthritis will grow at a CAGR of 17.8 percent over the projected period as it forecasted more adults and children will have arthritis. Cannabis infused edibles is also expected to grow at a compound annual growth rate (CAGR) of 17.8 percent over the forecast period.
California’s new recreational cannabis laws went into effect on January 1st, 2018. While California is the largest market, Canada is projected to show strong sales as well. Deloitte’s report estimates the Canadian market will be worth at least $5 billion in sales in 2018.
Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics explained, “Our data shows positive indicators across the board for the legal cannabis industry, in North America and around the globe. The passage of the 2016 ballot initiatives and continued maturation of the existing Adult-Use markets are the primary drivers of the growth this year. That’s nothing compared to what we can expect in 2018 and beyond from Nevada’s tourism, and California and Canada planning to launch Adult-Use sales in 2018.”
Pivot Pharmaceuticals earlier this week announced the acquisition of Thrudermic, LLC , a privately held North Carolina company. Pivot previously announced a licensing agreement with Thrudermic but has decided to exercise its option to acquire 100 percent of TDL. Pivot will pay $1.00 for all of the issued and outstanding units of Thrudermic, and issue an aggregate of 500,000 common shares in the capital of Pivot to Dr. Joseph Borovsky and Dr. Leonid Lurya for their intellectual property portfolio, including patents, good will and know-how in connection with the TDL Transdermal Nanotechnology.
Borovsky, has been appointed Pivot’s Vice President, Product Formulation; Lurya has been appointed executive director of product formulation.
The TDL Transdermal Nanotechnology is intended for the formulation and delivery of dosable bio-cannabis products. On behalf of Pivot, Thrudermic recently filed three additional patent applications related to improved formulation and delivery for new routes of administration of cannabinoids and will increase the number of products in the company’s pipeline.
“Thrudermic is very excited to become part of the Pivot organization. Our lipid-based nano-dispersion technology is well suited for the emerging cannabis industry,” Borovsky said. “Pivot’s goal is to increase cannabinoid bioavailability, drug release rates and improve product stability, and consumers should be able to confidently take correct and accurate doses to help meet their health and wellness needs.”
Borovsky, formerly the director of research and development for Mead Corporation, received his Bachelor of Science degree in Chemistry from UCLA and his Ph.D. in Physical Organic Chemistry from the University of Massachusetts at Amherst. He also completed a year of post-doctoral research in Medicinal Chemistry at Washington State University College of Pharmacy and was a Research Fellow in Synthetic Organic Chemistry at Harvard University.
Lurya is the inventor of Thrudermic transdermal technology and has authored several patents. He received his MD from the Moscow Medical Institute No. 2, Russia, and then completed his PhD in Biophysics, Chemical Physics Department at the Weizmann Institute of Science, Israel.
“Thrudermic is Pivot’s fourth disruptive formulation and delivery platform for cannabinoids,” Pivot CEO Dr. Patrick Frankham said. “We are thrilled that Dr. Borovsky and Dr. Lurya have agreed to join us to develop and commercialize therapeutic bio-cannabis products. They are highly experienced formulations experts with many years of pharmaceutical industry know-how. Pivot continues to position itself as a leader in the delivery of dosable bio-cannabis, something that consumers and regulatory agencies will demand as legalization occurs.” N.