U.S. Reclassification Could Drive Fresh Research Funding Into Cannabis Sector
The U.S. pot sector could see an influx of medical research funding from healthcare investors amid renewed interest from pharmaceutical firms, should a proposal to reclassify cannabis as a lower-risk substance be approved, industry experts said.
The current classification as a Schedule I substance has limited research into cannabis due to restricted access to cannabis products, regulatory hurdles and funding limitations.
Federal research grants are essentially off the table, while potential legal complexities put off many private foundations.
But that may change with the U.S. Justice Department’s proposal to reclassify cannabis.
“For years, pharma and biotech companies have viewed cannabis as a market with enormous potential,” said Michael Johnson, CEO of Metrc, which makes software to track the cannabis supply chain.
“With rescheduling, investment firms that previously had clauses precluding them from investing may reconsider their stance.”
Read the full article at The Globe & Mail
