May 19, 2020
Tilray secures approval regarding US clinical trial, share price soars
Canadian cannabis producer Tilray Inc has received approval from the US Drug Enforcement Agency (DEA) to import a cannabis product to the US for a clinical trial at the University of California, San Diego
The news has seemingly prompted another spike in the company’s share price, improving by 30% on 18 September and pushing their value to an increase of over 800% since the IPO launch.
Financial Post said that this has boosted the company’s market valuation to “about US$14.4 billion”, placing it well above previous leader Canopy Growth Corp at “around US$11.5 billion”.
According to CNBC, the clinical trial in San Diego will “study the safety, tolerability and efficacy of marijuana for a neurological disorder”.
Tilray CEO Brendan Kennedy said of the trial’s impact on the company’s prospects:
“Clinical trials build a halo around the brand”.
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“They inspire confidence and trust with physicians and regulators around the world and they give us data and information to talk to pharmacists and physicians that they just can’t obtain from our competitors”.
Canada’s fast-approaching legalization of recreational cannabis use has thus far seen stocks across the industry jump in value, though Tilray’s market growth is particularly remarkable.
Companies including Coca-Cola are keen to cash-in on the emerging market, with the soft drink company reportedly interested in producing cannabis-infused products.