British American Tobacco Invests $10 Million in CBD Brain DrugPosted by On


(Bloomberg) — British American Tobacco has made another investment in cannabis as part of its push to diversify away from cigarettes, this time partnering with CBD firm Charlotte’s Web to develop a drug for an undisclosed neurological condition.

A joint venture between BAT’s subsidiary AJNA BioSciences PBC and Charlotte’s Web, which BAT invested in last year, plans to seek approval from the US Food and Drug Administration for a treatment made from hemp extract. AJNA invested $10 million in the deal. Charlotte’s Web and AJNA each own 40% of the entity, while BAT controls the remaining stake, according to a statement.

Even though the cannabis industry faces hurdles, tobacco companies are increasingly investing in the sector to move away from legacy tobacco products, like cigarettes, that have experienced declining demand. BAT has also put money into OrganiGram, a Canadian cannabis firm, and German cannabis company Sanity Group in joining Snoop Dogg’s Casa Verde Capital.

So far, despite the medicinal promise of marijuana, few companies have made specific efforts to pursue FDA-authorized drugs. Only one such drug has been blessed by the agency, GW Pharma’s Epidiolex. (However, the agency notes it has also approved three synthetic cannabis-related drug products.) 

“This is the first move by tobacco into drug development,” said Jefferies analyst Owen Bennett in a research note. The prospects are attractive, he said, considering that Epidiolex, a treatment for…

Original Author Link click here to read complete story..

News

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.