On February 3, a $7.2 billion transaction forever changed the implications for one industry we’ve been following closely.
As longtime Daily readers know, we’ve been tracking the legal cannabis megatrend since 2019. We’ve covered all facets from cultivation… to recreational legalization… to cannabis-infused products… and even the medicinal aspect of the plant.
The last point is what I want to focus on… Because it just got a huge boost.
Today, I’ll tell you how you can ride this trend. But first, a little background…
A Watershed Moment
In the decades before cannabis legalization spread across the U.S. and abroad, cannabinoid medicines were demonized.
Cannabis was the catch-all term for marijuana, which the public viewed as the favored vice of dropouts, stoners, and hippies.
And thanks to initiatives like the “war on drugs,” no applications of the plant − whether it be hemp, cannabidiol (CBD), or other derivatives − could shake the stigma. This stunted the growth of what was once a promising area of study.
Not only that, but the pharmaceutical complex did all it could to block progress on anything related to cannabis-based medicines. So no one knew if cannabis actually provided any health benefits.
But we’ve come a long way since then.
Recently, a sea change in sentiment has brought cannabis to the forefront of medical research and legitimacy. For instance, according to two separate polls from Gallup and Pew Research, about two-thirds of Americans now support cannabis legalization.
And to date, some form of cannabis is legal in all but eight states. Of those 42 states where cannabis is allowed, medical sales are legal in 35, recreational sales are legal in 15, and 32 have decriminalized its use.
This has created incredible opportunities for people suffering from various ailments… and those who had the foresight to invest in medical cannabis-related companies.
This shift then came full circle when pharma giant Jazz Pharmaceuticals agreed to pay $7.2 billion for cannabis drug company GW Pharmaceuticals earlier last month.
GW is one of the pioneers in cannabinoid-based medicines. Its landmark drug, Epidiolex, was the first CBD-infused drug to receive FDA approval.
Since gaining approval, this drug – which treats acute epilepsy in children – has become a leader in the field and generated $520 million in sales last year alone.
The Jazz acquisition is a watershed moment because it shows an established industry player buying what was once a shunned and controversial science.
And now that the gates are open, we feel this will start a bidding war on other cannabinoid-based medicines…
We’ve Seen It Before
In 2018, a $4 billion deal between cannabis producer Canopy Growth and alcohol maker Constellation Brands sent the entire sector 50% higher… and that initial investment unlocked billions of dollars more as others followed Constellation’s lead.
Within months, we saw a mad rush of partnerships between cannabis producers and giant beverages and tobacco companies.
HEXO Corp. partnered with Molson-Coors.
Tilray teamed up with Anheuser-Busch.
And Cronos Group inked a $1.8 billion deal with cigarette maker Altria.
As you can see, a major partnership like Canopy and Constellation can create a frenzy of deal-making in the cannabis space.
So we wouldn’t be surprised if Jazz’s $7.2 billion buyout of GW Pharma triggers a similar spate of deals in cannabis-based medicines…
A One-Click Way to Play This Trend
If you’re looking to position yourself to profit from the tidal wave of big pharma money set to flood the cannabis space, here’s what you can do…
In the week following the Jazz-GW announcement, the Horizons Marijuana Life Sciences ETF (HMLSF) shot up about 60%… HMLSF has come down a bit since then, but it’s still up 80% since the beginning of the year.
So if you want broad exposure to the legal cannabis trend, consider HMLSF.
It contains over 20 of the top cannabis companies, and we expect it to go even higher as the cannabis space enters a second bull market.
As always, be sure to do your homework before making any new investments… and we’ll continue to keep you informed on the latest trends in the sector.
Analyst, Palm Beach Daily
P.S.Right now, one of the biggest growth sectors we see outside of legal cannabis is in crypto and blockchain projects… including one ticker symbol that could return 15x your money by the end of the year.
To help you prepare, Daily editor Teeka Tiwari has put together a free presentation explaining how a major change in our financial system could trigger a massive shift of capital to this sector.
To learn more about this major change – and get the ticker symbol I mentioned above – click here to watch.