Will these cannabis stocks make a splash in 2021? - Kalkine Media

February 12, 2021 09:40 AM PST | By Team Kalkine Media
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Summary

  • Cannabis players have been gaining momentum buoyed by expectations of comprehensive legalization and near-term decriminalization.
  • Canopy Growth Corporation has built strong momentum in the US cannabis market driven by CBD products and non-CBD brands.
  • Aphria remains on track to become the first licensed producer to cultivate medical cannabis in Germany.
  • GW Pharmaceuticals and Jazz Pharmaceuticals signed a definitive agreement under which Jazz would acquire GW Pharmaceuticals to create a global biopharma leader.

The cannabis industry is a booming industry comprising companies that are engaged in R&D activities and the distribution of medicinal cannabis products. The cannabis space also includes companies providing indirect support to these processes. Besides the US, several other nations are also opening their markets to cannabis-based formulations that treat multiple indications.

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Cannabis has started achieving broader acceptance and has been legalized in a growing number of countries, states, and jurisdictions for medicinal and recreational purposes.

Since the start of 2021, cannabis players have been gaining momentum, buoyed by the expectations of wider legalization and near-term decriminalization along with the growing adoption of cannabis use.

In light of the above, let us acquaint you with 3 NASDAQ-listed cannabis stocks-

Canopy Growth Corporation clocks record net revenue in Q3

World-leading diversified cannabis and cannabinoid-based consumer product player, Canopy Growth Corporation (NASDAQ:CGC, TSX:WEED) offers product varieties in high quality dried flower, oil, soft gel capsule, infused beverage etc. The Company’s subsidiary Tweed introduced Compassionate Pricing, a concept that helps bring affordable medical cannabis products to the patients.

On 9 February 2021, Canopy Growth Corporation updated the market with its financial results for the third quarter FY21 ended 31 December 2020. Here are quick highlights

  • In Q3 2021, the Company achieved net revenue of ~C$153 million, an increase of 23% compared to Q3 2020.
  • Net cannabis revenue of C$99 million was driven by the rise in Canadian recreational as well as international medical cannabis revenue.
  • Canopy Growth strengthened competitive positioning in the recreational market of Canada.
  • The Company developed further momentum in the US cannabis market driven by CBD products and non-CBD brands.

Image Source: Canopy Q3 2021 Earnings Presentation (9 February 2021)

Mr. David Klein, CEO of Canopy Growth, commented:

Outlook: medium-term financial milestones

Canopy is confident of smashing its financial goals bolstered by new strategy, organizational changes, and operational cost savings program underway. The Company’s medium-term financial goals are mentioned below-

Image Source: Canopy Q3 2021 Earnings Presentation (9 February 2021)

Stock Information: On 12 February 2021, CGC shares closed the day’s trade at US$40.31, down by 0.84%. The Company has a market cap of US$15.190 billion.

Aphria to become the first licensed producer of medical cannabis in Germany

A leading global cannabis-lifestyle consumer packaged goods company Aphria Inc (NASDAQ:APHA, TSX:APHA) runs operations across the US, Canada, Europe, and Latin America.

Aphria’s United States Operations (Image source: APHA Quarterly Report, November 2020)

On 8 February 2021, Aphria updated the market that the Company is on track to become the first licensed producer to cultivate medical cannabis in Germany.

The Company’s medicinal cannabis cultivation facility is awaiting EU-GMP certification in Neumünster, Germany.  Aphria anticipates that its first harvest will occur in the first quarter of CY21.

Moreover, its business combination with Tilray will enhance the Company’s footprint in five strong brands to help establish the Company as an unrivaled European platform. With these brands, this business combination has two production facilities and a flexible supply chain given Tilray’s Portugal-based EU-GMP facility.

The Company also stated that it had strengthened its leadership position in Germany with Denise Faltischek, Aphria’s Chief Strategy Officer, leading its operations in Germany.

Stock Information: On 12 February 2021, APHA shares last traded at US$16.94, up by 0.36%. The Company has a market cap of US$5.366 billion.

GW Pharmaceuticals signs a definitive agreement with Jazz Pharmaceuticals

GW Pharmaceuticals Plc (NASDAQ:GWPH) and Jazz Pharmaceuticals plc on 3 February 2021 entered into an agreement under which Jazz will acquire GW Pharmaceuticals. As part of the deal, Jazz would pay US$220.00 per GW American Depositary Share (US$20.00 in Jazz’s ordinary shares and US$200.00 in cash). The companies anticipate closing the transaction in the 2nd quarter of 2021.

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Upon completing the transaction, the combined entity will be a leader in neuroscience with a well-positioned global commercial and operational footprint to maximize the value of its diversified portfolio.

The companies are confident that the acquisition would create an innovative, high-growth, and global biopharma leader with financial strength. The benefits for the combined entity will be-

  • Adding a 3rd high-growth commercial franchise.
  • Robust combined drug pipeline in neuroscience as well as oncology to drive sustainable growth.
  • Shared culture and outstanding talent will advance the mission to transform patients’ lives.
  • The combined entity to deliver substantial value to its shareholders.

Stock Information: On 12 February 2021, GWPH ADS last traded at US$213.93, down by 0.36%. The Company has a market cap of US$6.704 billion.


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