The global legal marijuana market size is expected to reach US$66.3 billion by the end of 2025.
Growth will be fuelled by increasing legalisation and the growing adoption of cannabis as a pharmaceutical product for treating severe medical conditions, such as cancer, Parkinson’s disease, Alzheimer’s disease, arthritis, and other neurological conditions.
The US has already legalised medical marijuana in 33 states, with early mover states such as Colorado reaping big rewards, bringing in US$1bn in tax revenue since that state legalised the once illegal drug.
In the US alone, cannabis has generated an estimated $US52 billion in sales revenue, while creating just shy of 65,000 jobs in the cannabis space in 2018.
With the growth of the industry, has come a rise in cannabis-infused edibles including brownies, chocolate bars, cookies, drinks, pills, snacks, spreads and lozenges.
The industry has transitioned so completely and comprehensively that some companies in North America offer a “medicated” meals-on-wheels service for patients that cannot physically leave the house.
Heavily linked to this sector is Creso Pharma (ASX:CPH, FRA:1X8), which could have a global impact, including in the US, with its range of medical cannabis products.
Creso is across the entire cannabis supply chain and has developed relationships that have paved the way for entry into new markets, whilst potentially generating substantial revenues in coming years with immediate traction likely to occur as early as 2020 through its animal health and human health products.
Designed for human, Creso’s cannaQIX® range of products has already had an impact. This suite of products helps manage stress and chronic pain and could be vital to this new segment of the health market.
The cannaQIX® range
The cannaQIX® range of products has already had global impact.
The cannaQIX® hemp oil derived food supplement is currently available in Switzerland, UK, Australia, Brazil and New Zealand.
In December 2019, Creso through African subsidiary Pharma Dynamics, received initial orders worth approximately A$300,000 for the cannaQIX® product range. Products are anticipated to be available in South Africa in April 2020.
The range of products is also available in major retailers Holland & Barrett and Boots in the UK, whilst sales of its flagship medicinal cannabis product cannaQIX® 50 have begun at Burleigh Heads Cannabis, one of Australia’s leading medicinal cannabis distribution companies.
CannaQIX®’s global market penetration has increased significantly, with cannaQIX®, with Creso recently marking a major milestone of 100,000 packs sold.
The 100,000 packs sold milestone corresponds to over 2.5 million cannaQIX® lozenges sold since the product’s launch in April 2018.
There are currently three cannaQIX® lines: cannaQIX® 10 helps manage stress and cannaQIX® 25 and 50 helps manage chronic pain.
Products are being distributed through pharmacies and drug stores in Europe, as well as through doctors and clinics in Oceania and Latin America.
Creso’s animal health products have had a similar impact
Creso’s animal health product anibidiol® reach an estimated 100,000 dogs, equating to over three million anibidiol® sachets doses sold since the products launch in late-2017.
This milestone corresponds to over 3 million sachets doses of anibidiol® granules used as complementary feed.
anibidiol® Regular and anibidiol® Plus are commercialised for small, medium-sized and large pets to support the reduction of stress and help the animals’ nervous systems to function well.
Pet owners report anibidiol® has also contributed to the management of pain and improved the vitality of their pets after one week of use in addition to normal feed.
Creso has filed its animal health products in Argentina and Uruguay and is in discussions with several potential US partners to introduce its products, human and animal, into selected US states.
Having identified commercial partners, negotiated terms and outlined long term collaboration plans on its existing range of products, as well as for new products, 2020 is set to be a milestone year for Creso.
The positive news flow throughout January has already resulted in Creso’s share price increasing by more than 70% from about 11 cents at the start of the month to a high of 19 cents.
By Jonathan Jackson