Canopy to research CBD's effectiveness in treating animals
Canopy Growth (TSX: WEED) (NYSE: CGC) has received approval from the Veterinary Drug Directorate of Health Canada to research the effectiveness of cannabidiol (CBD) to treat anxiety in animals. A clinical trial will be conducted by Canopy Animal Health, a division of Canopy Health that focuses on developing cannabis-based healthcare products for companion animals. WEED has received a No Objection Letter to use a proprietary CBD enriched oil previously administered in preclinical dosing and safety studies, as a potential therapy for anxiety in animals. Marc Wayne, managing director of Canopy Health says this marks a significant milestone in making cannabis-based drugs accepted and recommended by veterinarians.
We are excited by this news as animal and pet lovers but we must not lose sight of the potential size of this market. The North American pet industry was valued at US $27.7 billion in 2016 and is expected to grow to US $35.8 billion by 2022. The North American industry is estimated to be 37% of the global industry. So we appreciate these efforts by WEED on an emotional level but we also appreciate the potential business this could generate. Canopy remains one of our investment favourites in the cannabis industry.