The US DEA (Drug Enforcement Administration) has made CBD a schedule 5 drug.
This is a huge move for CBD producers and marks the first time the agency has lowered any type of cannabis from Schedule 1.
The declassification from schedule 1 suggests that the DEA recognizes that cannabis has medical value.
And this is big news!
CBD a Schedule 5 Drug
The announcement was made yesterday and marks a changing point for medically-derived CBD.
Until yesterday, cannabidiol was a schedule 1 drug; the most restrictive class of controlled substances. Schedule 1 drugs are considered highly addictive and of no medical value. As a result, there are limitations on their use for medical purposes and are greatly restricted and closely monitored by the DEA.
On the other hand, a schedule 5 drug likens to something like a cough syrup; medicines which do not have a high abuse potential.
The DEA has set some guidelines though; a cannabis-derived medicine must contain a THC content lower than 0.1% and must be FDA approved to be classified as a schedule 5 drug.
Epidiolex was approved by the FDA three months ago. It was the first ever cannabis-derived medicine to receive approval from this body.
Created to treat rare forms of epilepsy that predominantly affect children, Epidiolex will now begin to sell in 6 weeks.
Business Will Boom
The move will allow many more pharma companies to begin developing cannabis-derived medicines.
GW Pharmaceutical (NASDAQ:GWPH) was up 8% yesterday after the announcement, and that is no surprise. Across the board, cannabis shares were in the green as sentiment across the sector was obviously very positive.
In the words of James Minutello, CEO of Leaf Logix, “We’re one step closer to finally ending prohibition and legitimizing the industry.”
Do you agree that cannabis should be a schedule 5 drug? Are you happy about the DEA’s decision?
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