As we start the second quarter of 2023, we want to highlight 5 of the most important developments from the first quarter. We believe these developments provide an accurate reflection of where the industry is today and want our readers to be aware of them.
Curaleaf Shuts Down Operations In Major Cannabis Markets
In late January, Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the closing of most of its operations in California, Colorado, and Oregon. In March, Curaleaf announced that it’s shuttering its cannabis cultivation facility in Bellmawr, New Jersey, and will consolidate cannabis operations at its Winslow facility. The company also is consolidating cultivation and processing operations in Massachusetts to a single facility in Webster
Canopy Growth Closes Its Flagship Cultivation Facility
In February, Canopy Growth Corp. (Nasdaq: CGC) (TSX: WEED) closed its flagship cultivation facility in Smiths Falls, Ontario, and cutting more than a third of its workforce as part of a shift to an asset-light model in Canada. A company representative said the Canadian cannabis company is consolidating cultivation in Kelowna and Kincardine and we find this development to be significant.
Cardiol Therapeutics Reports Positive Results From A Study
A few weeks ago, Cardiol Therapeutics Inc. (Nasdaq: CRDL) (TSX: CRDL) announced study results from one of its international collaborating research centers. The results demonstrate that its pharmaceutically manufactured cannabidiol significantly prevents cardiac dysfunction and the development of fibrosis and cardiomyocyte hypertrophy in a pre-clinical model of heart failure. We consider the biotech vertical to be an important part of the cannabis sector and believe Cardiol is an undervalued business.
Trulieve Generates $1.2 Billion Of Revenue In 2022
In early March, Trulieve Cannabis Corp. (OTCQX: TCNNF) (CSE: TRUL) announced fourth quarter financial results and we were impressed with the numbers. During the quarter, the US multi-state operator (MSO) generated $302 million of revenue. This brings total revenue for 2022 to more than $1.2 billion and we are bullish on this data point.
Jazz Pharmaceuticals’ Acquisition of GW Pharma Has Been Accretive
On March 1st, Jazz Pharmaceuticals plc (Nasdaq: JAZZ) announced fourth quarter financial results. In 2021, the biotech firm acquired GW Pharmaceuticals and we are favorable on this asset. During the quarter, Epidiolex accounted for $207 million of net product sales ($736.4 million for the entire year) and we expect this number to increase on a going forward basis. So far the product has been launched in 5 major markets in Europe (United Kingdom, Germany, Italy, Spain and France). We are favorable on the enhanced distribution and will monitor this aspect of the business on a going forward basis.
If you are interested in learning more about the cannabis industry in the first quarter of 2023, please send an email to email@example.com with the subject “Most Important Cannabis Developments” to be added to our distribution list.
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