CV Sciences (OTCQB:CVSI) had a leading voice in the FDA’s recent hearing on CBD. Held last Friday, May 31, the hearing yielded a disappointing result because no conclusive decision regarding the benefits and safety of CBD was reached. CVSI stock has fallen roughly 13% since this hearing.
Are investors put out by the FDA’s lack of acceptance for CBD? Yes. But did CV Sciences’ role in the hearing have anything to do with this? Not likely.
CVSI Stock Down Since FDA Hearing
For the hearing, CV Sciences’ Senior Vice President of Science and Regulatory Affairs, Dr. Douglas MacKay, was selected to present slides and written commentary to the FDA’s expert panel. It was a privileged position to be in; Dr. McKay was one of only three representatives from public hemp CBD companies.
Further, out of 113 speakers on the matter, he was the only one to submit formal safety data that the FDA requested.
The Press Release
According to a press release, Dr. MacKay placed importance on identifying and separately regulating different CBD product categories. This means drugs, foods, drinks, and supplements, and he cited current omega-3 regulations as an example of a workable framework.
After the hearing, he said the following:
“The FDA hearing was a watershed moment, and an important first step toward a clear policy that will shape the growth of this important new global industry, and separate agricultural hemp from controlled substances.”
The hearing lasted 10 hours, and the FDA was given a myriad of data regarding safety, manufacturing, product quality, labeling, marketing, and sale of products containing cannabis or cannabis-derived compounds. However, the government body left the hearing with a number of questions still unanswered.
As such, it returned no clear decision regarding the benefits and safety of CBD.
The ambiguity regarding the matter caused hemp stocks to crash on Monday, and now investors must wonder what’s next? CVSI stock was affected and, as stated, shares fell approximately 13%.
Today, shares are still affected; down a further 2.18% and selling for $4.03 USD at present. The downturn doesn’t look to be stopping.
But at least investors can look market-wide here, and see that the entire market is affected by the FDA hearing. As such, once this news “blows-over” and with new regulations surrounding CBD unlikely to be written up anytime soon, hemp stocks may not be greatly affected in the short-term.
A bounce back is a potential in the coming weeks. What do you think? Are you a CVSI stock investor?
Featured Image: Canva