While 2021 may have been a quiet year for cannabis stocks on the ASX, it has been a busy year for the industry and 2022 will be even bigger.
The majority of cannabis stocks on the ASX are either still working in medical cannabis products or in the early stages of commercialization, resulting in a lack of enthusiasm among investors.
The sector was boosted by the TGA’s release of certain CBD products, leading to speculation that 2021 would be the year we might see products on pharmacy shelves.
However, it will be some time before that avenue opens – as companies must conduct clinical trials for such products before they can be TGA approved – the open avenues contributed to a record year for the industry.
FreshLeaf Analytics announced in its seventh market report last Friday that the number of active patients will be close to 90,000 and revenue from product sales will be $ 230 million by the end of the year.
In 2019, revenue was just under $ 30 million and patient numbers were below 25,000.
Graphics: Freshleaf Analytics
There are a total of 224 medicinal cannabis products in the market, and the average patient spends $ 278 a month.
FreshLeaf also noted that there were signs that the stigma surrounding cannabis was gradually dissipating.
For example, Australians now have some promises that CBD products will be available through pharmacies, as well as an increase in approvals through the Special Access Scheme, as well as authorized prescribers.
2022 will be even bigger for Australia’s cannabis industry
FreshLeaf says the industry has a lot to expect in 2022.
“It is expected that patient access will continue to improve as the government implements accepted recommendations made as a result of the Senate investigation into barriers to patient access to medicinal cannabis,” the report said.
“This includes possible changes to the SAS-B path of approval, further reforms to the system of authorized prescribers and possible changes to the Medicare benefit system for primary care.”
FreshLeaf also forecast that there would be a consolidation of the cannabis industry in the form of mergers and acquisitions in 2022.
It found that a trend had started in 2021 Cann group (ASX: CAN) and Cronos (ASX: CAU) Business with the private companies Satipharm and CDA Health, while Cannpal (ASX: CP1) was taken over by Auscann (ASX: AC8).
FreshLeaf called Little Green Pharma (ASX: LGP) as a company that benefits from the export market.
The “must-watch” list of cannabis investors in 2022 was rounded off by companies doing clinical research on CBD products in pharmacies and cannabis companies that have switched to psychedelics.
It found that the TGA was investigating certain psychedelic substances and that a downgrade was possible before the end of the year.
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