The medical cannabis market has been on a recovery lane over the last couple of years following 2015-2016 plunge that saw stocks in the industry lose as much as 70% of their market value. Between 2013 and 2015, the medical cannabis market was one of the most hyped. This period alone saw popular cannabinoid stocks like GW Pharma (GWPH) gain more than 1,200% in market value—in turn triggering the launch of several new cannabinoid biotech startups.
However, in the following year, the appetite for cannabinoid stocks appeared to wane with a majority of those interested seemingly already tapped in the market and looking to cash out. Furthermore, prices for listed stocks both in the main exchanges and OTC had soared massively making them relatively expensive compared to rivals in the market.
Subsequently, as the early investors moved to take profits, this triggered a massive plunge that saw the likes of GWPH lose more than 70% in market value after declining from a high of $126 per share to bottom at about $35 per share. For some, that was about it as the hype around medical cannabis continued to evaporate.
However, it appears that the medical cannabis industry has recovered from that period of a selloff and now seems set to reach new heights. The reason for this is that more states in the U.S. have now legalized medical cannabis whereas, in countries like Canada, federal legalization is imminent.
While the story of medicinal cannabis may have gained popularity over the last decade, it goes far back than most would imagine. Research shows that historically, people have used cannabis for medicinal purposes in many ways. At the beginning of the 20th century, chemists sold special corn plasters with cannabis as one of the main ingredients. It is suggested that cannabis had anti-bacterial properties and given the general attachment to green medicine at the time, this helped to build up the concept of using cannabis for medicinal purposes.
