Aurora Cannabis (ACB) is one of the prominent players in the global medical cannabis business. As a result, the company generated 30% of its revenues from its medical cannabis business in the fourth quarter.
On October 25, Aurora Cannabis announced that the initial findings from the University of Saskatchewan showed that its CanniMed 1:20 oil could lower or cure seizures in young patients with severe epilepsy. CanniMed, which was acquired by Aurora Cannabis in May 2018, manufactures CanniMed 1:20 oil. The oil contains a high quantity of CBD (cannabinoid) and a low quantity of THC (tetrahydrocannabinol).
Aurora Cannabis’s press release said that the research team published the initial results in Frontiers in Neurology—a scientific journal. The study also provided guidance to physicians on CanniMed 1:20 oil dosages to treat epilepsy in children. According to the company’s press release, the children’s body weight determined the dosage. Patients were given 10 milligrams–12 milligrams of CanniMed 1:20 oil per kilogram of their body weight daily. At this dosage, the press release reported a 50% reduction in seizures. As a result, the children’s daily activities improved.
The press release stated that, until now, physicians had very little guidance on the dosages to treat severe pediatric epilepsy with cannabis-based medicine. The press release said that the patients who received the stated dosage of CanniMed 1:20 oil didn’t show any symptoms of THC-related intoxication.
Dr. Richard Huntsman of the University of Saskatchewan headed the research study. He said, “What makes these results really exciting is it opens up a treatment option for kids who have failed to respond to traditional medications.” Aurora Cannabis clarified that the research group selected CanniMed 1:20 oil independently. As a result, the company didn’t fund the research study.
Other players in the medical cannabis business
In May, Canopy Growth (CGC) (WEED) formed Spectrum Therapeutics. Notably, Spectrum Therapeutics includes all of the company’s clinical research programs and medical cannabis businesses. Meanwhile, Canopy Growth generated 22.8% of its total revenues from its global medical business in the first quarter of fiscal 2020.
Cronos Group (CRON) markets its medical cannabis products under the Peace Naturals brand. On October 15, Aphria (APHA) posted its first-quarter earnings for fiscal 2020. During the quarter, the company sold 1,314 kilograms of medical cannabis at 7.56 Canadian dollars per gram.
Stock performance
So far, October has been a tough month for the cannabis sector. The Cambria Cannabis ETF (TOKE) and the ETFMG Alternative Harvest ETF (MJ) have fallen 3.8% and 1.3%, respectively. During the same period, the S&P 500 Index has increased 1.5%. Individually, Aurora Cannabis, Canopy Growth, and Cronos Group have lost 14.3%, 6.0%, and 2.3% of their stock value. However, Aphria’s stock price rose 5.8% during the same period. Also, Aphria’s impressive first-quarter performance caused the company’s stock price to rise.
Aurora Cannabis will report its first-quarter earnings for fiscal 2020 next month. For analysts’ expectations, read Aurora Cannabis: What to Expect from Its Q1 Earnings. For more cannabis-related news and updates, follow 420 Investor Daily.