medical marijuana Archives - Green Market Report

Dustin WalshAugust 17, 2023
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19min00

This story was reprinted with permission from Crain’s Detroit and written by Dustin Pletz.

Michigan’s medical marijuana industry is wilting.

The portion of the cannabis business that stood up legal weed in the state is now at its lowest point since its inception in 2008, according to data from the Cannabis Regulatory Agency. Sales crept to just $6.14 million in July, down nearly 71% from a year ago and down 86% from July 2022 when sales reached nearly $43 million. The cost of an ounce of medical marijuana is down 52% over the last 12 months to $102.03, but consumer pricing is only part of the cost conundrum.

Much of the medical marijuana drawdown is linked to industry costs associated with maintaining a medical and recreational license and the costs associated with marketing and selling both. Plus there are fewer and fewer markets that are medical marijuana only, such as Waterford Township and Pontiac, both of which are merging toward the adult-use market. Detroit was the last major city that maintained the distinction and prohibited recreational marijuana, but sales finally began earlier this year after legal squabbles.

The reality is there are fewer dispensaries selling medical marijuana as demand for adult-use recreational marijuana dominates — recreational sales totaled $270.6 million in July, compared to $188.8 million a year ago. And with those prices near historic lows, it’s simply easier and cheaper for all consumers, recreational or medical, to purchase marijuana on the recreational side of the business.

“For us, it’s expensive to maintain both licenses and follow both sets of rules,” said Ankur Rungta, CEO of Ann Arbor-based C3 Industries, a vertically-integrated company with a grow operation in Webberville and 13 High Profile Cannabis Shop locations across the state. “It’s a tighter market right now and managing costs is critical. As the market shrinks, it just makes less and less sense (to sell medical marijuana).”

C3 Industries

Puffing prescription

Michigan voters approved medical marijuana sales in 2008, a full decade before voting to allow recreational sales. But the legal framework to allow medical sales wasn’t established until 2016, after the Michigan Supreme Court ruled in 2013 that the 2008 law didn’t allow for dispensaries. The long delays led to the state not issuing the first batch of retail licenses until August of 2018.

The medical industry was largely supported by caregivers, those growing marijuana at home and distributing that product to dispensaries — the state began phasing out caregiver sales to dispensaries in 2020 as recreational marijuana came online and commercial grow operations were churning out product. Caregivers can still supply registered medical marijuana patients, but cannot sell excess product to dispensaries.

The state requires a medical marijuana card for “patients,” who used the product to treat mostly chronic conditions, requiring patients to get a medical marijuana card issued by medical doctors and doctors of osteopathy. One difference there is patients can be as young as 18, where recreational cannabis is only available to those 21 and older.

David Schulman, a former vascular and thoracic surgeon at Henry Ford Health and other metro Detroit health systems, started Huntington Woods-based Greenpath Holistic Medicine in 2017 to review and approve patients seeking medical cards.

“I was done with surgery and done with teaching, and I was done with organized medicine,” Schulman said. “But I wanted a source of income, though that wasn’t the major factor. It was more curiosity about marijuana and it was something I could do with my license without having to be involved in traditional medicine.”

Schulman said he doesn’t issue cards for common complaints like insomnia and anxiety but saw great improvements in patients with migraines and other chronic conditions.

“I would say I started as a skeptic, thinking my patients would be young college students looking to sell weed to their friends,” Schulman said. “But I discovered a large cohort of patients who found marijuana is superior to the crap drugs other doctors were putting them on.”

The state had more than 251,000 registered marijuana card holders in July 2021, making Michigan the largest medical marijuana market of the time, according to data from the CRA. Of those card holders, nearly 61% of the cards were issued for chronic pain and more than 22% for arthritis.

But plummeting recreational prices started cutting into those sales. Recreational wholesale prices had almost reached parity with medical marijuana by July 2021 and continued to crash, reaching as low as $80.16 an ounce by January of this year.

The result was fewer and fewer people maintaining their medical marijuana cards. As of July 31 this year, state data shows Michigan has shed more than 100,000 medical card holders, dropping to 141,005.

“There used to be some meaningful advantages for a medical card for consumers – lower taxes and higher purchasing limits,” Rungta said. “But those advantages are less important as overall prices come down.”

Medical marijuana carries a 3% excise tax, compared to a 10% excise tax for recreational marijuana, and users are able to purchase larger doses of medical marijuana than recreational.

That translated to an ounce of recreational marijuana — an amount that would produce roughly 60 marijuana cigarettes or joints —costing $3 more than an ounce of medical marijuana in July 2023 prices. The CRA limits recreational THC concentrates in edibles at 10 milligrams per dose, compared to 50 milligrams per dose in medical as well as differing doses for tinctures and oils.

For many, renewing a two-year medical marijuana card, which costs between $100 and $200 for the medical appointment, isn’t worth the trouble, Rungta said.

C3 Industries has shed all but one of its medical marijuana growing licenses and almost all of its medical marijuana sales licenses.

“We have the largest addressable recreational market in the country as far as sales per capita,” Rungta said. “It’s not from medical marijuana consumers going to rec. It’s just exploding. That has to do with the low cost of product.”

While the medical market in the state continues to decline, the adult-use recreational market is reaching new heights, selling more than $270 million in July alone. The state’s total marijuana market is expected to eclipse $3 billion this year, behind only California, which has 30 million more people.

There are still good reasons to maintain a medical marijuana market, and Schulman said it has nothing to do with money.

“What if they encounter the law or have a job with drug testing?,” Schulman asked. “Cannabis still isn’t like other medicine because of the stigma. If they keep a medical card, they are less likely to face drug testing from their employer, and for those that picked up for DUIs and are found to have marijuana in their system, they get hit with that whether they were high or not. People are still threatened because of marijuana use.”

Kevin Mechigian, owner of Tree House CBD in Walled Lake and Express Med Card, said despite declines in card holders business is holding steady.

“For the average consumer, a medical card doesn’t make sense anymore,” Mechigian said. “But if you use cannabis daily or even monthly, it gets competitive.”

A card at Express Med Card costs $110, he said.

But he isn’t high on the market.

There are still good reasons to maintain a medical marijuana market, and Schulman said it has nothing to do with money.

“What if they encounter the law or have a job with drug testing?” Schulman asked. “Cannabis still isn’t like other medicine because of the stigma. If they keep a medical card, they are less likely to face drug testing from their employer, and for those that picked up for DUIs and are found to have marijuana in their system, they get hit with that whether they were high or not. People are still threatened because of marijuana use.”

Kevin Mechigian, owner of Tree House CBD in Walled Lake and Express Med Card, said despite declines in card holders business is holding steady.

“For the average consumer, a medical card doesn’t make sense anymore,” Mechigian said. “But if you use cannabis daily or even monthly, it gets competitive.”

A card at Express Med Card costs $110, he said.

But he isn’t high on the market. Mechigian expects medical marijuana to all but phase out of the state in the next five years.

“Maybe it doesn’t go away, but it will continue to change,” Mechigian said.

Rungta said the medical market in Michigan or elsewhere won’t survive until medical marijuana becomes more legitimate as medicine, not just as a recreational drug with a medical backdoor.

“For medical to really drive a comeback, there would need to be differentiation. It’s the same product, essentially, on both sides (medical and recreational) of the business. We’re just not there yet,” Rungta said. “It has to come through R&D. A product that’s something closer to medicine and more data-driven evidence to support it.”

expects medical marijuana to all but phase-out of the state in the next five years.

“Maybe it doesn’t go away, but it will continue to change,” Mechigian said.

Rungta said the medical market in Michigan or elsewhere won’t survive until medical marijuana becomes more legitimate as medicine, not just as a recreational drug with a medical backdoor.

“For medical to really drive a comeback, there would need to be differentiation. It’s the same product, essentially, on both sides (medical and recreational) of the business. We’re just not there yet,” Rungta said. “It has to come through R&D. A product that’s something closer to medicine and more data-driven evidence to support it.”


StaffAugust 18, 2022

4min00

Medical Marijuana Inc. (OTC: MJNA) reported $7.8 million in net revenue in the second quarter of 2022. This fell from last year’s revenue of $9.6 million for the same time period in 2021. The company also reported a net loss of $11 million versus last year’s net income of $7 million.

The company said in its filing that it took a net loss of $7,106,771 related to Axim Biotechnologies, Inc (OTCB: AXIM) and a net loss of $369,439 related to Neuropathix, Inc. (OTCB: NPTX). The company owns 17% of Axim stock.

Medical Marijuana also burned through $2.2 million in cash in the quarter leaving the company with a balance of $2.7 million versus last year’s balance at the end of the second quarter of $6.5 million. The company has total liabilities of $9.9 million.

Medical Marijuana CEO Blake Schroeder said, “We have first mover advantage in nearly every market where the company operates with potential for continued international expansion well into the future. Beyond international expansion efforts, we continued our efforts in the second quarter in the pharmaceutical space as we believe this segment to hold tremendous future upside value for our company. In Brazil, we believe we will have products on pharmacy shelves by late this year or early 2023. Additionally, researchers at our investment company, Neuropathix, are utilizing grant money received from the National Institutes of Health to further their clinical research on its proprietary compound aimed at treating neuropathic pain and inflammation.”

International Push

Last month, Medical Marijuana announced its pharmaceutical subsidiary, HM Pharma, had submitted a product dossier for its cannabidiol (CBD) products after receiving Sanitary Authorization from ANVISA, Brazil’s Health Regulatory Agency.

Also in July, Medical Marijuana announced that in June its subsidiary Kannaway achieved its largest revenue month in the company’s history for its Japan division. Kannaway established operations in Japan in 2019 and the company has experienced rapid growth in 2020, 2021, and to date in 2022. Japan’s CBD market is projected to become the second-largest CBD market in Asia, growing to about $1.9 billion USD by 2024.“This year has been phenomenal for Kannaway in Japan. The company has increased sales every month in 2022 so far and we look forward to continuing this trend,” said Schroeder. “Reporting indicates that the Japanese government is considering easing some of its regulations on how CBD is sold in the country, and this would allow for increased opportunity for Kannaway in the marketplace.”


Noemi GonzalesAugust 28, 2020
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6min00

Medical Marijuana: A Clinical Handbook” First Edition

by Samoon Ahmad M.D. and Kevin P. Hill MD MHS

We are moving quickly into uncharted territory in terms of how the medical community is finally able to dive further into cannabis research without potential legal repercussions so it is a huge advantage to see experts such as authors Samoon Ahmad M.D. and Kevin P. Hill M.D MHS share their level of knowledge with the rest of us and with other medical professionals that might need guidance regarding cannabis use in their own patients.

Today we are taking a look at “Medical Marijuana: A Clinical Handbook” to see for ourselves just what kind of solid information the expert authors have brought to the table for us.

This should be a very fascinating one to peer into so let’s get started!

-Topic Focus-

This book was written by doctors with years of experience when it comes to both dealing with patients and studying cannabis effects with other practicing physicians in mind so that they have access to the latest medical information regarding cannabis and how it might apply to various treatments with patients.

Written like a guide and easy to navigate, this book expertly covers topics ranging from the pharmacological profiles of CBD and THC, the cultural and medical implementations of cannabis, and so much more.

The goals here is to further empower and arm physicians, doctors, nurses, and other medical professionals to understand how cannabis can potenianlly impact medical treatment and to further increase the quality of care and life for more patients.

About the Author

We have two authors to take a look at with this one, both with impressive medical expertise.

Dr. Samoon Ahmad has been a practicing physician for over 25 years and brings that level of expertise to this book in fine form. He currently serves as Unit Chief of Bellevue Medical Center’s Inpatient Unit and is also a Professor in the Department of Psychiatry at NYU Grossman School of Medicine.

Kevin P. Hill, M.D., M.H.S. has authored many papers on the effects of cannabidiol as an addiction psychiatrist and Director of the Division of Addiction Psychiatry at Beth Israel Deaconess Medical Center and Associate Professor of Psychiatry at Harvard Medical School and has engaged in many speaking events on the topic of cannabis usage, law, medical information, and more.

With their powers combined these two medical experts have put together a very useful tool for medical professionals to leverage across the world.

-Reading Experience-

“Medical Marijuana: A Clinical Handbook” is written as a reference guide and certainly reads like one. The flow that one might desire from a less serious book is not present but the compelling level of information presented in the book keeps it fascinating even for those of us who are not medical professionals.

It seems like a powerful asset for any medical professional to add to their arsenal of knowledge as much of the scientific advancement regarding cannabis has been suppressed up until recently.

This book feels like a treasure trove of solid information that is both enlightening and fascinating to read.

-Summary-

“Medical Marijuana: A Clinical Handbook” is a legitimate guide to navigating the relationship of medical treatment and health with that of cannabis consumption and it’s various potential applications.

This comprehensive medical guide will surely prove to be quite an asset to the medical community and to those of us who are willing to study and grow our own level of knowledge to live healthier lives harmoniously with cannabis.

The breakdowns of topics such as the endocannabinoid system, therapeutic applications, and so much more are truly enlightening topics to explore!

If you are interested in checking out the book for yourself then here you go:

https://www.amazon.com/Medical-Marijuana-Samoon-Ahmad-M-D/dp/197514189X/ref=sr_1_1?crid=137OB3XVOJWGO&dchild=1&keywords=medical+marijuana+a+clinical+handbook&qid=1598366200&sprefix=medical+marijuana+cli%2Caps%2C500&sr=8-1

 

 


StaffMay 13, 2020
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9min02

Ever since recreational cannabis has stolen the stage, people tend to forget that cannabis is one of the oldest and most trusted medicines on the planet.

The medicinal properties within the plant are responsible for managing the symptoms associated in patients suffering from Epilepsy, Autism, Crohn’s Disease, Cancer, PTSD, and Chronic Pain to name just a few.

These brands have developed some of the best practices and formulations in the industry to treat a myriad of ailments with patents pending across the globe.

Our team decided to break down a list of the most respected medical brands and products within the cannabis industry globally.

Here they are:

 

1.) Charlotte’s Web:

More than just CBD: CBD plus naturally-occurring phytocannabinoids, terpenes, flavonoids and more in every CBD oil serving. The team from Charlotte’s Web uses limited, select ingredients to ensure you have the absolute best hemp extract possible. Their CBD oils include Charlotte’s Web premium hemp extract, carrier oil, and flavor. That’s it. Their products are U.S. Hemp Authority Certified. Charlotte’s Web CBD oils are whole-plant extracts that include a variety of of beneficial compounds, including phytocannabinoids, terpenes, flavonoids, and essential fatty acids.

 

2.) Aunt Zelda’s:

Aunt Zelda’s is a pioneering, data-driven developer of cannabis-based plant medicines. Our products are the result of years of research and development by founders, Mara Gordon and Stewart Smith, in consultation with knowledgeable physicians and world-renowned researchers.

Utilizing proven time-tested extraction processes improved with modern technology, Aunt Zelda’s offers medicines of precisely measured potency and purity that empower patients to dose to the milligram and unlock the therapeutic potential of cannabis.

If you prefer to obtain lab tested products created for specific ailments, Aunt Zelda’s will help you get there!

Aunt Zelda’s mission is to alleviate patient suffering through medical cannabis.  We help you, our patients, live fulfilling, healthy lives.

They provide unmatched expertise in the correct use of medical cannabis matched to disease-specific products with the highest purity in California.

Their goal is to create a positive and supportive community for medical cannabis users. They aspire to be your trusted source of cannabis resources and its safe, effective and responsible use

 

3.) HOPE Grows for Autism:

Formulation by: Zelira Therapeutics

HOPE is a Proprietary formulation specifically to address patient symptoms associated with Autism Spectrum Disorder.  The HOPE® Franchise has received support from organizations such as HOPE Grows for Autism, a leading autism advocacy group based in Pennsylvania. It has been the top performing product within the state and will soon be available for patients in Louisiana and throughout the US and Australia. 

In a company press release in December 2019, Zelira Therapeutics leadership said, “Our company will have the ability to distribute the HOPE® portfolio along with our additional products through licensing agreements with multi-state and international operators…”

HOPE 1 and HOPE 2 are part of a growing family of proprietary medical marijuana formulations. HOPE™ is created by extracting, isolating, and then re-assembling the medicinal compounds from the marijuana plant to achieve specific, targeted effects. HOPE™ was formulated with autism in mind and has quickly proved to be beneficial to other chronic conditions such as chronic pain, anxiety, neuropathy and others. HOPE™ has since become its manufacturer’s best-selling tincture.

 WHAT FORMS OF HOPE ARE AVAILABLE?

Available as a tincture, blended in 100% olive oil.

WHAT MAKES UP HOPE?

THC + CBD + Terpenes

Found in the trichomes of the plant, terpenes are plant oils with unique aromas and distinctive​ flavors (pine, citrus, mint) and are known to play​ a key role on the overall effects of each strain. ​ Terpenes also play a key role in differentiating​ the flavor and scent of marijuana. Some terpenes​ might promote relaxation, while others energy or​ focus.

 

4.) Ilera Holistic Healthcare:

ALAFIA — which means ‘inner peace’ in the Nigerian “Yoruba” language — is scientifically formulated, lab tested and pesticide free. Currently on the market are two formulated PURE CBD tinctures: Isolate CBD with 500mg and 1000mg  and Full Spectrum CBD with 500mg and 1000mg.  This product is Additional CBD products will be released at dispensaries in the state of Louisiana only.

“Our vision has always been patient access and affordability,” said Chanda Macias, chief executive officer of Ilera Holistic Healthcare. “It was imperative for us to bring high-quality products that support health and wellness.  Patients now have the ability to purchase ALAFIA over the counter without a prescription anywhere it is available.”  Dr. Chanda Macias said back in January 2020

5.) Haleigh’s Hope:

Extra strength has double the concentration than the regular strength, allowing the consumer to take less oil but still get the same desired therapeutic effect as the regular strength. Extra Strength products are recommended for people over 100 lbs.

This organically grown, whole plant extract contains a broad spectrum of naturally occurring plant based compounds that are clinically proven to provide a powerful combination of antioxidants and neuroprotectants. Haleigh’s Hope® was created from a proprietary genetic plant strain that was carefully bred and cultivated over seven years to achieve a precise combination of clinically proven, therapeutic plant compounds..

Haleigh’s Hope® grows, extracts, produces, packages and ships 100% of our product from our facilities in Colorado. Because we have exclusive control over our products from seed to sale, we ensure the highest levels of quality and consistency in the industry. Every batch of our product is lab tested for safety and quality.

Safflower is a cold pressed seed oil that is non-GMO and organic, and does not need to be shaken.

Exclusively grown and manufactured in Colorado, USA.


StaffApril 29, 2020
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4min04

Medical Marijuana, Inc. (OTC: MJNA) reported financial results for the quarter and year ending Dec. 31, 2019, with $75.6 million in gross revenue in 2019, a 26.3% increase year-over-year when compared to 2018’s gross revenue of $59.8 million. The net ordinary income for 2019 was $3.3 million versus 2018’s net loss of $8 million. The company reported a positive adjusted EBITDA of $139 thousand in 2019 as compared to a loss of $1.2 million in 2018. 

The GAAP net income for the fourth quarter increased to $84,404 versus 2018’s net loss of $202,630.

“In 2019, Medical Marijuana, Inc. and its subsidiaries continued to execute on our strategic growth and fiscal responsibility action plan that rendered our best results yet and I could not be more excited to share them with shareholders,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “We were able to not only generate increased revenues but focus on our bottom line by making strategic adjustments to expenditures.”

“In addition to our success in the U.S., our international operations have continued to flourish in EuropeLatin America and we are excited for our development in Asia,” said Medical Marijuana, Inc. COO Blake Schroeder. “We hope that these efforts will continue to build shareholder value and help bring our industry-leading products to broader audiences worldwide.”

In 2019, Medical Marijuana, Inc. listed the following highlights:

  • The Company was recognized as a top-five hemp-derived CBD company by Yahoo Finance
  • Subsidiaries HempMeds® and Kannaway® became the first companies to have their CBD products listed in the Prescribers’ Digital Reference
  • Subsidiaries HempMeds®, Dixie Botanicals® and Kannaway® received the U.S. Hemp Authority Certification Seal
  • Dr. Titus was invited to speak at the FDA Hearing on Cannabis and CBD Products in May 2019
  • Brooke Beers was promoted to Chief Financial Officer

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