Investible Medical Marijuana

Featuring Todd Harrison

Todd Harrison of CB1 Capital Partners meets Mike Green to discuss investing in the medical cannabis industry. From perception and the legal environment, to application and distribution, Harrison evaluates the opportunities for today and tomorrow. He identifies the market inefficiencies created by both stigma and legal hurdles, along with some strategies to take advantage of them. Filmed on August 29, 2017 in New York.

Published on
11 September, 2017
Topic
Food agriculture, Micro
Duration
35 minutes
Asset class
Commodities, Equities
Rating
35

Comments

  • gr

    guy r.

    23 8 2018 12:35

    1       1

    any follow up interview opportunity here given this remains topical?

  • DR

    Daniel R.

    17 9 2017 16:32

    5       0

    More interviews by Michael Green please! He's smart, incisive, and draws out the best from the guest - doesn't get in the way. Excellent!

  • EF

    Eric F.

    16 9 2017 13:23

    0       0

    To learn more go to cb1cap.com? Nothing there, no contact info either!

  • SJ

    Sy J.

    15 9 2017 02:25

    6       0

    I'm waiting for oranic, grass fed, humanely raised canabis, that can certify that no insects were hurt or mistreated in production of this drug.

  • VA

    Val A.

    14 9 2017 03:20

    0       0

    At least we know the dog is getting a good night sleep.

    Appreciate coverage on this topic, I'd love to hear more from the commodity space.

  • SD

    Stephen D.

    13 9 2017 09:38

    2       0

    Interesting. But to echo some very well informed commentary here, the incredibly small amount of research data on cannabis means that multiple medical applications are very speculative. Cannabis is legal in many US states now and there is clearly a lot of recreational demand, that's real and revenue generating. Mariijuana has been used as a medicine in many cultures over millenia so no doubt there WILL be medical benefits but we are surely years away from properly tested ones, especially as the FDA, being Federal, can't approve them until marijuana is federally legalised. This seems highly problematic.

  • AT

    Alex T.

    13 9 2017 02:56

    19       0

    As always with this subject, a lot of very uninformed commentary. Sadly Todd (in an otherwise excellent talk) did quite a poor job of explaining the medical science and that only reinforces those who are sceptical or biased. For instance, no one is claiming cannabis will cure brain cancer. Instead, GW Pharma's trial in glioma is for their CBD/THC combination in conjunction with chemotherapy, not replacing it. Efficacy will be measured like in any other trial, through Progression Free Survival rates etc.
    Big pharma & doctors are starting to realise that cannabis doesn't necessarily have to replace current "standard of care", but can enhance it. One example: there is evidence that cannabis enhances the pain-relief effect of opioids, thus allowing for much smaller doses and reducing the horrible side-effects of long-term opioid use. A combo therapy could be a win-win (there are companies working on this).

    One big issue I don't think Todd mentioned is that of patents and protecting IP. Can biotechs patent specific combinations of cannabinoids? Will those patents be enforceable? Besides the Schedule 1 issue, I think is a big reason we're not seeing more medical trials. Big legal battles are also looming w respect to patents on particular strains of marijuana.

    Todd, like many others, is quite dismissive of the investment thesis regarding growers. You can easily imagine how cannabis could become just another agricultural commodity with little value being generated in that part of the chain. I'm not so sure: governments are imposing massive regulatory burdens on growing medical marijuana. You need an incredibly sophisticated growing operation to comply, highly capital intensive. In Germany, for example, post legalisation it's clear that domestic large-scale commercial growing operations are a long way away from being a reality. It's just very complex. In the meantime they are importing medical marijuana from the handful of big Canadian growers . As for recreational marijuana, it seems the cultivation standards will be the same as for medical (from what we're seeing in California so far) . This is a very sore point for many growers... they've risked imprisonment for years and now thats it's finally legal they're getting shut out of the market. Most of those guys can't raise the millions required to set up a licensed operation. Bottom line, you can forget about mom & pop growers flooding the market. Cannabis prices could stay higher for much longer than people expect.

    Apologies for the excessive length of this comment. Thanks RV for the great interview!

  • dj

    daniel j.

    12 9 2017 14:38

    1       0

    I have been in this space for some time. Imortant to note that canadian market is not the same as us marked due to lack of federal apptoval hence RICO applies.

  • TF

    Terry F.

    12 9 2017 04:33

    18       1

    I have read a number of comments here that Todd sounds like a snake oil salesman in this interview. To me, he sounds no different than other interviewees that are selling a high tech vision to improve the world (Blockchain, social media,as well as Biotech promoters). Todd has a passion and is not afraid to show it. A passion is a wonderful thing and is the motivator to overcome the hurdles of conventional wisdom.

    I know little about the medical efficacy of marijuana, but it doesn't take a genius to understand that a legal ban on the plant that eliminates all research leaves everyone just with anecdotal stories and rumors.

    I also understand doctors who are reluctant to get on the bandwagon do so out of the lack of proper Phase 2 and 3 double blind trials. The problem here is the lack of research because of the DEA classification which from all I've read about marijuana usage is overkill (I have never consumed it in any fashion in my 67 years). I believe the main guiding purpose here in the war on drugs is money. Too much is being made by BOTH sides to terminate the war.

    So, I would like to see it reclassified (at least for research), so we can move forward to determine if marijuana has a place in medicine. Let's get it resolved one way or the other.

  • GC

    Gary C.

    12 9 2017 00:06

    2       15

    Reminds me of the frying pan salesman with the mic at the county fair.. Or the guy selling sponges that absorb 50 times their weight in the kitchen.....

  • PP

    Patrick P.

    11 9 2017 21:59

    4       11

    I kind of felt like this guy was the monsignor selling the city fathers on the idea of Monte Carlo night at the church rectory 7 nights per week *BUT* it's not really gambling. And we are going to contribute big to the mayor's next campaign. So it's all good.

  • CM

    Carl M.

    11 9 2017 20:47

    3       0

    Cannabiscoin? I think it is already here?
    Mike seemed particularly relaxed during this interview.
    Sorry I could not resist some levity on such a heavy day.

  • GO

    Greg O.

    11 9 2017 20:05

    8       0

    "...and you mentioned that cats and dogs like to get high too..." LMAO, almost fell off my chair

  • Sv

    Sid v.

    11 9 2017 18:06

    20       4

    When someone describes their product as "magical and mysterious" and it cures everything, and even makes his dog stop barking, reminds me of a guy standing in the back of a pick up truck with a bull horn at an intersection in town selling bottles of "magic elixir" guaranteed to cure everything that "ails you.' Still, it is interesting.

  • TH

    Tomi H.

    11 9 2017 17:34

    46       4

    As a physician, I sadly have to admit, that this Interview was the first one that really sounded more like a sales pitch than a real profound fundamental analysis on the subject.

    While I somewhat agree on some points, especially that in the industry there might be pricing inefficiencies because of the legal issues and because the institutional investors aren't yet in, I totally disagree with the science and all the hype behind these "studies".

    I'm not saying that CBD or THC aren't helping a wide range of patients with different diseases. There is evidence behind it and that's why physicians are actually using medical marijuana when there is clinical relevance for that.

    But so far what comes to "CBD or THC curing brain cancer " etc. this is all just crazy hype around few methodologically problematic studies.

    For example, at the moment results have been published from only one clinical trial testing whether cannabinoids can treat cancer in patients, led by Dr Manuel Guzman and his team in Spain. Nine people with advanced, terminal glioblastoma multiforme – an aggressive brain tumour – were given highly purified THC through a tube directly into their brain.

    Eight people’s cancers showed some kind of response to the treatment, and one didn’t respond at all. All the patients died within a year, as might be expected for people with cancer this advanced.

    The results from this study show that THC given in this way is safe and doesn’t seem to cause significant side effects. But because this was an early stage trial, WITHOUT A CONTROL GROUP, it’s impossible to say whether THC helped to extend their lives. And while it’s certainly not a cure, the trial results suggest that cannabinoids are worth pursuing in clinical trials.

    Even though I am a medical practitioner and done lots of personal research on medical marijuana, I can't see positive expected value on trades that are taking long side views on these stocks as a group. In fact, I would suggest that there might be positive EV for shorting some of these stocks, since the prices are way ahead their fundamentals because all of the hype around these stocks. There certainly is a need for more clinical trials, but the potential for medical marijuana "curing cancer" or even to be considered as a relevant treatment for cancer is very low.

    And the last thing: There are also many other promising – and potentially even more effective – avenues that scientists are exploring for glioma. For example, treating glioma in mice with a “specific inhibitor” drug called alisertib, targeted against a protein called Aurora-A, prolonged the survival of mice with artificial brain tumours, similar to those in the cannabinoids study.

    If anyone is interested the real science behind medical marijuana and cancer, I would recommend to check this synthesis out: http://scienceblog.cancerresearchuk.org/2012/07/25/cannabis-cannabinoids-and-cancer-the-evidence-so-far/

  • AM

    Aaron M.

    11 9 2017 17:17

    6       0

    Todd makes a lot of good points. The money in the space will be made from the pharma/healthcare side treating people with less toxic pill prescriptions, not the retail distribution of oils, food, etc.

  • EF

    E F.

    11 9 2017 17:10

    2       1

    what's 9/11 got to do with this

  • as

    andrew s.

    11 9 2017 14:44

    5       0

    Agree with Jacob s the money is not in the production, fast and easy to grow plant/weed

  • as

    andrew s.

    11 9 2017 14:20

    4       0

    GW Pharmaceuticals GWPH has been a leader in the medicinal field and has been going since 1998.

  • js

    jacob s.

    11 9 2017 11:08

    20       1

    This might be a biased view but:

    I'm not sure where the money to be made here is. The price of weed is just dropping across the board. My friends are chemical engineers and for extra cash they grow weed and make oils and candies. I've watched them do this in their kitchen and it honest takes minutes.

    The ability for them to scale shouldn't be considered like alcohol companies where you need a brewery. You literally need a YouTube, a ricer cooker and some land to grow weed on to make oil. I mean people are growing in in their closets. I mean of course there are people that don't have friends that grow weed and make dummies so they'll buy it through dispensaries. But there are applications to find people selling weed and weed oil etc etc.

    I've grown up in a generation where weed smokers have been screwed by the government and now they want me to pay taxes to buy it? Fuck the government. This is a plant and most of the companies on r/weedstocks are going to be zeros.

    I wouldn't say alcohol companies are going to hurt either because of the future of self driving cars. But I think it's a little naive to think there's a "green rush" here. People only buy weed growing equipment because they're afraid of weed laws. We're growing weed outside. I think Mike's right on when he says this is a deflationary pulse. It's going to put money back in the hand of the consumers.