Companies developing cannabis-based medicines say U.S. moves to loosen restrictions on the drug could unlock private funding and the public markets, providing a lifeline to the struggling cannabis industry.
The U.S. Department of Justice last week rescheduled FDA-approved medicines and state-regulated medical marijuana products, making it easier for companies to bank and receive tax credits and deductions.
Executives of three companies with cannabis medicines in development said the U.S. rescheduling would ease the stigma around marijuana and could lift restrictions among some mainstream investors and financial institutions that have shied away in the past. Ananda Pharma, which is developing a cannabis-based treatment for endometriosis-related pain, is preparing to raise $10 million to $20 million in private funding within six months, following the rescheduling.
"We have calls lined up already with a VC investor interested in endometriosis and with a significant U.S.-based family office," Chief Executive Melissa Sturgess said, referring to venture capital.
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