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HANetf : Medical cannabis sector comes of age: Sector in early stage of growth/more M&A activity expected

HANetf :  Medical Cannabis sector comes of age with $7.2 billion acquisition of GW Pharmaceuticals PLC as Europe’s first ETF in the sector exceeds $50m of AUM

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Nawan Butt, Portfolio Manager of The Medical Cannabis and Wellness UCITS ETF


  • Medical cannabis sector is still in the early phase of its growth to becoming a more mainstream Consumer and Healthcare category
  • The Medical Cannabis and Wellness UCITS ETF (CBDX) has reached $56million assets under management
  • The CBDX medical cannabis ETF has delivered a return of 59.79% over the past three months and 57.40% over the last 12 months . Past performance is no guarantee of future performance.

The Medical Cannabis and Wellness UCITS ETF (CBDX) says the decision by the traditional pharma company JAZZ Pharmaceuticals to purchase GW Pharmaceuticals, which made history by getting the first FDA approved drug derived from cannabis, is a notable turning point for the medical and wellness cannabis market.  It expects to see further M&A activity in the market.

CBDX was the first ETF to give access to the medical cannabis space in Europe and is the first to reach the $50m level of AUM. It provides access to companies active in the medical cannabis space that have been screened to ensure their legality for investment across Europe and the ETF can be bought in a single trade.

It says foresight into the proliferation of the cannabis industry is becoming clearer, in part due to the recent tide of change from US elections. It believes the sector is still in the early phase of its growth to becoming a more mainstream Consumer and Healthcare category, but there is growing validation of this change as operators re-structure and consolidate in anticipation of upcoming reform. It believes that where the initial focus had been on US medical proliferation, the announcement of the $7.2 billion acquisition of GW Pharma could see attention quickly shift to the pharmaceutical cannabinoid side of this emerging theme.

Nawan Butt, Portfolio Manager of The Medical Cannabis and Wellness UCITS ETF, said: “GW Pharma is the global leader in developing and commercializing a cannabis derived drug platform which has achieved regulatory approval in multiple jurisdictions in Europe and North America. Their current products, derived directly from the cannabis plant, address a broad range of diseases including the treatment of seizures associates with Lennox-Gastaut Syndrome (LGS), Dravet Syndrome and Tuberous Sclerosis Complex (TSC), all of which are rare diseases characterized by severe early onset epilepsy.

 “In addition to their achievements with regulators, GW Pharma has a deep pipeline of cannabis-derived drugs as well as highly specialized manufacturing expertise combined with over two decades of pioneering cannabinoid science experience. The company’s first two products were rapidly scaled, achieving approximately US$510 million in annual sales within two years of launch.

 “When GW Pharmaceuticals PLC started, most global pharma companies were hesitant to work with cannabis ignoring centuries of evidence there were some health benefits. As times are changing and attitudes adjusting, more and more companies are getting involved with the sector.

We are very proud to provide European investors with Europe’s first medical cannabis ETF, CBDX. It provides a legal and efficient way for investors to buy an index made of a representative group of medical cannabis companies in a single trade. CBDX is available in Euros, GBP, CHF & USD.”

The European listed Medical Cannabis ETF (CBDX), which was the first cannabis ETF to launch in Europe, has just completed its first-year anniversary listing on Deutsche Boerse and London Stock Exchange in January 2020. It is also listed on the SIX Swiss Exchange.  Since listing it has gathered over $56million of assets .

14% of the holdings in the Medical Cannabis and Wellness UCITS ETF was invested in GW Pharmaceuticals PLC, which contributed to the ETF rising 12.33% on the day the acquisition was announced .

The Medical Cannabis and Wellness UCITS ETF, tracks the Medical Cannabis and Wellness Equity Index The CBDX medical cannabis ETF has delivered a return of 59.79% over the past three months and 57.40% over the last 12 months .  Past performance is no guarantee of future performance. When you trade ETFs your capital is at risk. 

Source: ETFWorld.co.uk

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