CGC stock has been correcting this week despite Canopy Growth Corp (TSX:WEED) (NYSE:CGC) announcing the launch of Spectrum Therapeutics, a new global medical brand.
Canopy Growth has been one of the most important companies in the Canadian cannabis industry since its establishment, and over the years, the company has looked into a host of avenues in order to become a major player in the industry. One of its most ambitious moves so far has been the concerted effort to push cannabis into the domain of mainstream healthcare, and it seems it has taken the first step towards doing so with the launch of Spectrum Therapeutics.
Following the Spectrum announcement, however, CGC stock failed to react favorably.
For any large cannabis company, the final frontier is to push cannabis into healthcare, and to that end, Canopy Growth has devoted immense resources over the past few years. Spectrum Therapeutics is Canopy Growth's biggest push thus far.
Spectrum Therapeutics is an accumulation of Canopy's research operations, which includes C³ Cannabinoid Compound Company, Canopy Health Innovations, and Spectrum Cannabis.
Due to the legalization of recreational cannabis in Canada, the sector has exploded, but it is through medical treatments that the industry might explode into a multibillion-dollar industry.
Despite all this, CGC stock is down almost 1% at the time of writing, selling for $46.41 on the NYSE. WEED stock is down 1.21%, selling for $62.29. However, is this just a slight bump in an overall upward movement?
CGC Stock Soars This Year
While Canopy Growth's stock may not be reacting positively today, growth is more than just a part of the company's name. In April, CGC stock rose by as much as 16.5%, and in 2019, the stock is up by a whopping 82.7%.
So don't let today's downward movement fool you; Canopy Growth is making moves, and it's making them fast. Spectrum Therapeutics is just the most recent development in a long list of successes.
One of those successes includes Canopy Growth's incoming acquisition of Acreage Holdings. The deal will be worth $3.4 billion, although it is conditional on the US legalizing marijuana on a federal level. If and when it does come through, Acreage will be a huge help in pushing Canopy Growth into long-term success.
Do you think this is just a temporary dip in CGC stock?
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