DEA Promises Progress on Federal Cultivation Applications, But Provides No Timetable for Action

The DEA has once again pledged to take action to better facilitate clinical cannabis research.

August 26, 2019

The U.S. Drug Enforcement Administration (DEA) has once again pledged to take action to better facilitate clinical cannabis research.

According to the agency’s filing today in the Federal Register, the DEA “intends to promulgate regulations” to evaluate several dozen applications before it from private entities that wish to cultivate cannabis for FDA-approved research. However, this is not the first time the agency has made such a promise. In 2016, the DEA similarly announced the adoption of new rules to expand to supply of research-grade cannabis, but failed to take any further action.

“For the past three years, the DEA has failed to take any steps to follow through on its promise to facilitate clinical cannabis research, and today’s announcement makes it clear that this foot-dragging will continue,” NORML Executive Director Erik Altieri said. “According to the DEA’s filing, the agency has yet to even evaluate even one of the dozens of applications before it--many of which have been pending for more than two years, nor do they provide any timetable regarding when or if they ever will. In an era where public and scientific interest in the cannabis plant, particularly with regard to its therapeutic properties, has never been greater, and where patients in a majority of states are already using cannabis in compliance with state law, it is inexcusable that the DEA continues to take this ‘head-in-the-sand’ approach to this rapidly changing cultural and legal landscape.”

In June, one of the applicants seeking a DEA cultivation license--the Scottsdale Research Institute--filed a petition in the U.S. Court of Appeals for the District of Columbia seeking a writ of mandamus to order the DEA to comply with its 2016 policy, arguing that the agency has engaged in unreasonable delays. On July 29, the Appellate Court ordered the DEA to provide a written response to the filing within 30 days.

Since 1968, only the University of Mississippi has been federally licensed to engage in the growing of cannabis for FDA-approved clinical research. Scientists familiar with the product have consistently said that it is of inferior quality and fails to accurately reflect the types of marijuana varieties commercially available in legal states. Further, the University only provides scientists with the option to access herbal cigarette formulations of the plant, not concentrates, edibles, or extracts. Strains high in the compound cannabidiol (CBD)--a chemical of particular interest to many scientists--are also not currently available from the University.

Headset Launches Its Popular Cannabis Market Intelligence Tool, Headset Insights, in Canada

Alberta is the first province with access to the intelligence software for brands, producers, dispensaries and investors.

August 26, 2019

Posted by Melissa Schiller

Dispensary News

SEATTLE, Aug. 26, 2019 /PRNewswire/ -- PRESS RELEASE -- Headset, a provider of data and analytics to the cannabis industry, has announced it is launching its competitive intelligence tool, Headset Insights, in Canada. Recreational cannabis has been legal country-wide in Canada since October 2018, and the young and growing market is still developing. This will be Canada's first retail-derived cannabis market read based on aggregated point-of-sale data at the receipt-level.

Headset Insights will first be available in Alberta, the province with the most robust private retail footprint. With Headset Insights, businesses in and out of the cannabis industry will be able to understand the competitive landscape, identify opportunities and measure brand performance. The platform will give brands, licensed producers, retailers and investors the information they need to be a competitive player in this marketplace.

"After the success we've experienced in the U.S., we're excited to bring Headset Insights to the Canadian market, thanks to the efforts of our team and through our strategic alliance with Nielsen and Deloitte," said Cy Scott, founder and CEO of Headset. "This is an opportunity to bring a tested product to market in Canada, helping companies there get a better sense of category, segment, brand and product trends relevant to their markets. With its own unique rules and restrictions, our data already shows that the Canadian market behaves significantly different than U.S. recreational markets. Understanding those nuances will be key for incumbent and new players to maximize their potential for success."

Headset will measure all categories and subcategories currently available in Canada (flower, pre-roll, oil, and capsules) and will incorporate new formats rolling out as regulation changes. This product, combined with Headset's U.S. market read, will allow businesses to get a holistic view of the adult-use/recreational cannabis market.

"While lack of data in the market is a critical challenge for our Canadian and global clients, we believe the Canadian cannabis industry would benefit from transparency through data," said Rishi Malkani, Deloitte Canada's Cannabis practice leader. "We are investing heavily with Nielsen and Headset to help our clients make informed business decisions and succeed in the marketplace. This is another step in our strategic alliance and making cannabis as an industry successful."

"We are pleased that our strategic alliance with Headset is allowing us to join forces and be the first to market with transactional level market measurement," said Richard Lee, VP Business Development, Nielsen Canada. "The combined power of the Headset Insights tool with our end-to-end analytics information and the strength of our consumer insights will bring unparalleled information to the Canadian cannabis and FMCG markets."

"This announcement is further proof that Headset will continue to dominate the cannabis data and analytics vertical – first in the United States and now in Canada," says Narbé Alexandrian, president and CEO of Canopy Rivers Inc., who invested in Headset earlier this year. "This announcement validates our belief that in the cannabis industry, like other mature industries, data will be king."

Headset plans to launch Headset Insights in additional provinces over the next few months. Cannabis regulations vary by each province, so discrepancies in purchasing trends across Canada are to be expected as each province develops their own unique cannabis market.

Green Thumb Industries (GTI) Closes Transaction to Acquire Highly Coveted Vertically Integrated New York License

New York’s medical marijuana market has more than 105,000 registered patients as of August 20, almost doubling since January 2018.

August 26, 2019

Posted by Eric Sandy

Finance Dispensary News Distribution Medical Cannabis Mergers and Acquisitions News State by State: New York

CHICAGO and VANCOUVER, British Columbia, Aug. 26, 2019 (GLOBE NEWSWIRE) PRESS RELEASE -- Green Thumb Industries Inc. today announced it has closed on a transaction to acquire New York-based Fiorello Pharmaceuticals, one of only 10 companies approved to operate a medical marijuana company in the state. Assets include a manufacturing and cultivation facility in Schenectady County and a retail store in each of the following locations: Manhattan, Rochester, Halfmoon and Nassau County, three of which are open.

“As one of only 10 license holders in a state with a population of approximately 20 million, this acquisition is firmly in line with our strategic goal of entering highly regulated markets to manufacture and distribute cannabis brands at scale,” said GTI Founder and Chief Executive Officer Ben Kovler. “We believe entry into New York is an important milestone as we empower the right to wellness through responsible increased access to cannabis and are privileged to serve the people of New York seeking relief and an enhanced quality of life.”

New York’s medical marijuana market has more than 105,000 registered patients as of August 20, almost doubling since January 2018. The state’s program has 15 qualifying conditions including chronic pain, post-traumatic stress disorder (PTSD), and opioid replacement, and allows for home delivery.

“GTI is the clear industry leader and we have been very impressed with GTI’s leadership team and vision for the future,” said Fiorello Pharmaceuticals co-CEO Susan Yoss. “New York will benefit from GTI’s medical cannabis expertise and the high-quality care and products that they will bring to the many patients suffering from debilitating and life-threatening conditions.”

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New Jersey Governor Vetoes Expungement Bill, Presents Ideas for Revised Legislation

Gov. Phil Murphy conditionally vetoed a bill that would have overhauled the state’s expungement process and immediately cleared some cannabis convictions.

August 26, 2019

Melissa Schiller

Legislation and regulation News Politics State by State: New Jersey Dispensary News

New Jersey Gov. Phil Murphy conditionally vetoed a bill Aug. 23 that would have overhauled the state’s expungement system and allowed some individuals with cannabis convictions to have their records immediately cleared.

Murphy has instead offered his own recommendations on how to improve the state’s current expungement process, which has become outdated and tedious. Murphy’s vision includes the creation of a task force that would recommend how the state could implement a more technologically advanced, automatic expungement process for individuals who have not been convicted of any crimes for 10 years, NJ.com reported. Murphy’s conditional veto also calls for an electronic filing system to streamline the expungement process, the sealing of records related to the possession of small amounts of cannabis and paraphernalia and $15 million for the labor force required to process expungement petitions before the automated system is up and running, according to NJ.com.

State Sen. Sandra Cunningham (D-Hudson), who sponsored the original expungement bill, was disappointed with the veto, saying that Murphy’s version of the legislation would unfairly exclude some from participating in the process by capping the number of qualifying arrests, NJ.com reported.

The New Jersey Senate and Assembly passed Cunningham’s bill in June. The bill would have immediately expunged some cannabis convictions, and those guilty of non-cannabis-related offenses would have had their wait times reduced, according to NJ.com. Murphy has promised to expunge past cannabis convictions as part of his adult-use legalization efforts, but expungement legislation stalled in the legislature earlier this year. Now, both houses of the legislature would have to pass an amended version of the legislation that incorporates Murphy’s suggestions in order to have the bill signed into law.

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Jamaica Planning Medical Cannabis Research Center

The country is looking to Dr. Wilfred Ngwa's work at Harvard Medical School for inspiration and vision.

August 26, 2019

Eric Sandy

International Medical Cannabis News State by State: Massachusetts

With cannabis-based medicinal research picking up global interest from governments and universities—and with cannabis reform legislation sweeping the planet—Jamaica is developing a plan to serve as a hub for international markets’ scientific innovation and health care policy.

The Jamaican government is courting Dr. Wilfred Ngwa, director of the Global Health Catalyst at Brigham and Women’s Hospital’s Dana-Farber Cancer Institute at Harvard Medical School. Ngwa is joined in Jamaica’s plans by Dr. Henry Lowe and Dr. Julius Garvey (son of Marcus Garvey).

Earlier this summer, Ngwa hosted a plant medicine conference that caught the attention of Industry, Commerce, Agriculture and Fisheries Minister Audley Shaw. At the time, Ngwa was announcing the launch of Harvard Medical School’s International Phytomedicines Institute. “I am excited about the launch of the IPI to dramatically increase access to evidence-based medicinal products from plants," Ngwa said.

Shaw told the Jamaica Observer that Ngwa would be visiting the country soon to learn more about its climate and cannabis growing conditions.

Jamaica legalized medical cannabis in 2017, but the industry has been slow to develop. (Regulators have issued 54 cannabis business licenses. Export licenses are forthcoming.) The country decriminalized cannabis use in 2015, honoring Rastafarian traditions while also nurturing a rise in tourism; an illicit market has thrived, even as law enforcement cracks down on illegal cannabis cultivation. Add to those developments the usual restrictions on banking and the still-stringent regulation of international drug treaties, and Jamaica’s cannabis businesses remain in a bind. The idea of a medical cannabis research institution, however, strikes at the heart of the plant’s significance in Jamaican history and culture;

“We must also not forget that Dr. Lowe and others have developed plant-based medicines in Jamaica that are now world-renowned, and are presently submitting more applications for further development of additional plant-based medicines to the Food and Drug Administration of the United States Government,” Shaw told the Observer.

The timing is fortuitous, as Shaw’s department hopes to synchronize the work of Lowe and Garvey with Ngwa’s ongoing medical cannabis research. Earlier in August, Ngwa’s Harvard research team announced that it had discovered a flavonoid derivative in the cannabis plant with “significant therapy potential” in the treatment of pancreatic cancer. (In the U.S., approximately 57,000 adults will be diagnosed with pancreatic cancer in 2019, according to the American Society of Clinical Oncology.)

“In this study, we investigate a new non-cannabinoid, non-psychoactive derivative of cannabis, called FBL-03G, to assess its potential for the treatment of pancreatic cancer,” the study’s authors wrote in Frontiers in Oncology. “We hypothesize that the use of FBL-03G will have therapeutic potential and can enhance radiotherapy during the treatment of pancreatic cancer.”

With Shaw’s plan in motion, Jamaica may be situated geographically and climatically to support research like the flavonoid derivative study—with the scope of the International Phytomedicines Institute.

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