Weed stocks: Tilray approved to import medical marijuana, shares surge

Alessandro
Bianchi/Reuters

• Tilray
  received approval to import medical cannabis into the US for a
  study in California, the company announced Tuesday.
• The stock surged 11% following the news, hitting a
  fresh high of $133 in early trading.
• It’s now up 682% since its July initial public
  offering.
• 
  Follow
  Tilray’s stock price in real-time here. 
  

Tilray shares
were up more than 11% in early trading Tuesday after the British
Columbia-based cannabis producer received approval from US
officials to import medical marijuana for a clinical trial at the
University of California San Diego.

The drugs, imported in capsule form, are designed to treat
essential tremor (ET), a neurological disorder
that causes involuntary and uncontrollable shaking that can make
it difficult for patients to perform every day tasks like eating,
drinking, or writing. It’s expected to begin in early 2019.

“Tilray is proud to support this crucial research,” Catherine
Jacobson, Tilray’s director of clinical research,
said in a press release.

“If this study can identify cannabinoids as a potential treatment
for patients suffering from essential tremor, we can conduct
further research and potentially provide alternative effective
methods of relief for the high numbers of patients with ET.”

Currently, ET is
treated with drugs originally developed to treat high blood
pressure, seizures, and even Botox. Tilray is also involved in
four other trials to treat post-traumatic stress disorder
(PTSD), a form of epilepsy, brain cancer, and side-effects of
chemotherapy.

Tilray’s stock price has soared more than 680% — with Tuesday’s
gains — since its initial public offering in July. And while Wall
Street analysts remain optimistic for the company’s outlook, the
rally could be unsustainable. Analysts give the company an
average price target of $49 — less than half of Monday’s $120
closing price.

“Tilray has flowered into a global leader and GMP-certified
cannabis researcher, cultivator, processor and distributor,” Mike
Grondahl, an analyst at NorthLand Securities in Minneapolis, said
in a note to clients last month.

“We believe Tilray has positioned itself well to capture Canada’s
upcoming adult-use market share by leveraging its high-grade,
high-potency pharmaceutical reputation.”

Other cannabis companies like Canopy
Growth, Cronos
Group, and
Aurora Cannabis were up between 2% and 3% in pre-market
trading. 

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