Avner Meyrav
By Avner Meyrav

Cannabis could be a $57 billion industry by 2027, here’s your chance to invest

Despite its somewhat controversial status in the past, there is no doubt that cannabis’ medicinal prowess as a treatment for pain relief, cancer and other medical problems is well documented. The industry is still emerging, and is projected to reach $57 billion worldwide by 20271. Here at eToro, we’ve created a Smart Portfolio, which investors can use to take part in this booming industry.

To learn about the medical marijuana sector and its investment potential, check out this blog post.

The medical marijuana industry is blooming

In recent years, cannabis has been increasingly accepted as a legitimate raw material for the production of pharmaceuticals2,3. The CannabisCare Smart Portfolio comprises several leading companies that are spearheading the global medical marijuana industry, and presents an investment opportunity for those who wish to get in at a relatively early stage.

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The Portfolio’s investment strategy includes companies that are developing cannabis-based pharmaceuticals, such as Cara Therapeutics, Insys Therapeutics, and GW Pharmaceuticals, companies that support startups in the industry, such as the Cronos Group, and even companies that legally grow and sell the marijuana plant, such as Aurora Cannabis and Scotts Miracle-Gro Company.

CannabisCare Smart Portfolio Breakdown

This investment strategy is designed to present investors with balanced exposure to an array of companies in the industry. Each asset within the Portfolio’s composition is given equal weight and is rebalanced periodically by the eToro investment committee. The Portfolio’s constituent assets are:

  • AbbVie – This pharmaceutical company manufactures a cannabis-based drug called Marinol, which is designed to treat loss of appetite and weight loss associated with HIV and cancer.
  • Aphria Inc. – A global leader in growing and producing cannabis products for medical use, such as cannabis oil, capsules, vaporisers and more.
  • Aurora Cannabis Inc. – This Canadian company is a leading producer of cannabis flowers, oils, milled cannabis and more.
  • Cara Therapeutics – A clinical stage biotechnology company, which produces several cannabis-based products for pain treatment.
  • Corbus Pharmaceuticals Holdings – This pharmaceutical company develops a drug called Lenabasum, which is a cannabis-based oral treatment for systemic sclerosis, cystic fibrosis, dermatomyositis and systemic lupus erythematosus.
  • Cronos Group Inc. – A Canadian organization, Cronos is dedicated to the promotion of startup companies that use cannabis in various fields. In addition, the company is actively promoting the cannabis industry in Canada, working with government branches to regulate the use of the marijuana plant in various sectors.
  • GW Pharmaceuticals Plc. – In 2010, this British company was the first in the world to be given market approval for a cannabis-based drug, with its multiple sclerosis treatment Sativex.
  • Insys Therapeutics Inc. – A pharmaceutical company that has developed synthetic THC products and is actively working to gain approval of other cannabis derivatives for medical use.
  • Scotts Miracle-Gro Company – For some 150 years, this American company has been a leader in seed production and supply. In recent years, the company has placed heavy emphasis on cannabis, investing hundreds of millions of dollars in acquiring companies from the industry and developing its own cannabis division.
  • Zynerba Pharmaceuticals Inc. – This company focuses on developing cannabis-based pharmaceuticals for rare diseases and syndromes such as Tourette and epilepsy.

 

Planting the seed for long-term growth

It is no wonder that a growing number of companies are entering the cannabis field, sparking an interest in the investment community. The CannabisCare Smart Portfolio could be a good option for those who wish to invest in this emerging industry.

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Please note: Once the CannabisCare Smart Portfolio reaches 1,000 investors, it will be closed for new investments at 23:59 GMT of that day

Your capital is at risk. This is not investment advice. Past performance does not guarantee future results.

 Sources:

  1. https://bdsanalytics.com/wp-content/uploads/2018/07/Roadmap-to-a-57-Billion-Dollar-Worldwide-Market.pdf&sa=D&ust=1534765156579000&usg=AFQjCNHHg4VqcVkKIsu0pWKhYUaJ_UQrRA
  2. http://fortune.com/2018/06/27/fda-marijuana-gw-pharma-epidiolex-whats-next/
  3. https://www.pharmaceutical-technology.com/comment/first-big-pharma-company-distribute-medical-cannabis-products/