TLRY stock is currently declining. Selling for $43.47 USD on the NASDAQ exchange, Tilray (NASDAQ:TLRY) shares are down roughly 1%.
This is despite an announcement from IntelGenx (TSXV:IGX) (OTCQX:IGXT) detailing its receipt of the first shipment of Tilray's cannabis extract.
TLRY Stock Declining
IntelGenx is a leading oral drug delivery company. It has a partnership with Toronto's Tilray to develop a cannabis-infused dissolvable strip using its oral delivery technology called VersaFilm.
As VersaFilm strips simply dissolve on the tongue, patients are offered a new and simpler way to consume cannabis.
The companies are in a "product co-development program" together.
With the first shipment of cannabis extract from Tilray, IntelGenx can now begin creating the first batch of cannabis-infused VersaFilm. The product is expected to hit the shelves once phase II legalization kicks in late October.
On the development, Horst G. Zerbe, CEO of IntelGenx, said:
"We believe that, in addition to enabling IntelGenx and our partner, Tilray, to offer cannabis products of the highest quality, this provides the companies with a valuable first-mover advantage in the space."
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The pair signed a development and supply agreement back in November 2018. The agreement will see them co-develop and commercialize a host of oral film products for the Canadian cannabis market.
TLRY Stock Reacts
Despite the positive news, Tilray stock is reacting poorly, and as stated, shares are down 1%. This seems to be a trend, however, for TLRY stock, which is already down 50% from January when it sold for over $100.
This major pullback has been ongoing throughout the year. And recently, the company warned investors that the marijuana shortages in Canada would continue longer than expected.
According to Investors, Tilray said that "another 18-24 months might be needed before supply and the demand even out in Canada. That timeline was longer than the company's earlier expectations."
Further, management has said that it has struggled to find product from third-party suppliers that meets its quality standards.
As Tilray continues to sort out its suppliers, do you think it's a buy?
What are your thoughts on TLRY stock?
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