Tilray Stock Soars on Cannabis Trial in Peripheral Neuropathy

Tilray Stock

Tilray stock is the biggest gainer in the cannabis sector after Tilray (NASDAQ:TLRY) said that it has imported its supply of medical cannabis into the US to support a first-ever clinical trial.

One Step Ahead

The cannabis sector has been in the middle of a rough patch for many months now, and some of the biggest companies in the industry have suffered because of that. However, most companies are continuing to work towards expanding their businesses, and in a new development, Tilray made a major announcement today.

The company announced today that it has managed to import cannabis into the United States that will allow it to conduct trials on its effect on breast cancer. It is a significant development, considering the fact that most of the companies in the cannabis industry eventually want to be big players in the medical business.

The efficacy of cannabis will be tested on patients suffering from taxane-induced peripheral neuropathy. The study, which is going into its Phase 2, is going to be tested on 100 patients and is being sponsored by the New York Psychiatric Institute.

Over the past year or so, Tilray stock has lost a lot of value, and it is now an open question whether there is any value in investing in the stock.

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The company has failed to meet analysts’ estimates substantially in the last four quarters, and that remains a worry for many investors. That being said, the company did manage to record a year-on-year revenue growth of 370% to hit $45.9 million in Q2 2019. In the same quarter, the losses shot up by around 100% to hit $0.32 per share.

That being said, many investors might feel that Tilray stock is now available at a steep discount, and it is time to figure out whether that is the case or not. The company’s management has spoken about increased investments in Europe and the United States in order to compete against larger rivals like Canopy Growth (TSX:WEED) (NYSE:CGC).

On the other hand, its Anheuser-Busch InBev partnership could prove to be a blessing as it tries to get a toehold in the fast-growing cannabis-infused beverage space. Moreover, the medical marijuana space is also expected to be worth around $200 billion by 2029. However, there is a lot of uncertainty in the cannabis industry as of now, and if investors want to invest in it, they should not invest more than what they can afford to lose.

At the time of writing, Tilray stock is up 5.50% at $23.89.

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