FDA Approves Cannabis Drug, More to Come

Written by Nick Hodge
Posted June 26, 2018 at 8:00PM

It’s been a long time coming.

The Food & Drug Administration — for the first time ever — has approved a marijuana-derived drug.

There is plenty to unpack and ponder here, so let’s start with the essentials, directly from the FDA’s press release:

The U.S. Food and Drug Administration today approved Epidiolex (cannabidiol) [CBD] oral solution for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome and Dravet syndrome, in patients two years of age and older. This is the first FDA-approved drug that contains a purified drug substance derived from marijuana. It is also the first FDA approval of a drug for the treatment of patients with Dravet syndrome.

Some points…

1. It was approved for kids as young as TWO.

That’s a fairly young age to give someone a drug that’s currently illegal nationwide at the federal level.

Methinks some logic needs to be reconciled here. If the stuff is safe enough to treat seizures in two year olds, it stands to reason maybe it shouldn’t be illegal.

Indeed, the tide of prohibition is ebbing state by state, and I submit the dominoes will now fall fast and furious.

I’ve often compared it to the cascading effect Massachusetts had on gay marriage. The state legalized it in 2004 and it was legal nationwide via Supreme Court decision 10 years later.

Similarly, Colorado and Washington both legalized recreational marijuana in 2012. My gut says we’ll be legal nationwide by 2022, and this FDA decision gives a lot of validity to the legalization movement.

2. One of the diseases the FDA approved a marijuana-based drug to treat is Dravet Syndrome, a rare and severe form of epilepsy that begins in infancy and causes frequent and/or prolonged seizures for a lifetime.

It’s 2018. All the smartest scientists and PhD medical researchers have been unable to come up with a treatment for this terrible affliction.

And what got approved to treat it? Weed.

What else can weed successfully treat that drug companies and universities have spent billions finding chemical cures for?

3. The company that developed the drug was GW Pharmaceuticals (NASDAQ: GWPH).

In the past few years leading up to this approval, the stock has gone on an incredible run, delivering a return of more than 1,550%.

GW Pharma ChartGW Pharma’s only approved drug in the United States is Epidiolex — the one that was approved this week. On the back of that, and some others in the pipeline, it has a market cap of nearly $50 billion.

Marijuana is the real deal. It’s here to stay. Legalization timelines are being compressed and expedited. And it’s created hundreds of billions in new wealth.

4. What will be the next marijuana-approved drug?

Our resident marijuana stocks expert, Jimmy Mengel, is hot on the trail.

And he’s discovered that a former medical director at GW Pharma has left the company and is now chief medical officer at a new cannabis drug company.

This new company has used cannabis to do something we’ve never seen before... make cancer cells want to kill themselves.

As the Washington Post has written: “Recent studies have shown that [pot] can have potent anti-cancer action”...

Yet as promising as it’s been, it’s never made it out of the lab.

Until now.

GW Pharma has rocketed over 1,500% on the back of a single drug for epilepsy.

How much do you think a cannabis cancer treatment is worth?

Just like modern medicine couldn’t treat Dravet Syndrome and cannabis could, this company is onto a cannabis-based cancer treatment.

And while GW Pharma trades for $150 per share… this tiny company is trading at just $0.75.

Jimmy is so sure it’s going to deliver a giant win for medicine AND investors that he’s willing to give you $2,000 if it doesn’t work out.

See why here.

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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