Finance

Global medical cannabis market to reach $3.5 billion

The global medical cannabis market will show huge growth in the near future. A new report from Global Data has shown that $50 million in sales was generated from the marketing of approved medical cannabis products. The value of this market is expected to grow and reach $3.5 billion by 2025. The sales were generated across the United States, five European countries, Canada, Israel, and Australia.

Medical cannabis sales are booming around the world. According to the British management consultancy Global Data, the global medical cannabis market is expected to grow by more than 80% annually until 2025.

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The growth of medical cannabis sales

According to Global Data, medical cannabis products that are approved or already on the market amounted to at least $50 million (€45 million) in the United States, France, Germany, Italy, Spain, Great Britain, Canada, Israel and Australia in 2018.

By 2025, the management consultancy company is expecting an average growth in the global medical cannabis market of 81.3% to almost $3.2 billion (€3 billion) per year.

Products that are still on clinical trials

According to Global Data, 11 products are currently in the late phase of clinical trials, including Zygel (cannabidiol) and Lenabasum from Zynerba Pharma and Corbus Pharma.

The medical cannabis market launch in the United States and the European Union is planned for 2021. The U.S. FDA has therefore classified both products as orphan drugs with accelerated approval.

Magdalene Crabbe, an analyst at Global Data, is expecting these products to generate sales of $417 million (€379 million) and $771 million (€700 million) by 2025.

Children are the main potential patients for the medical cannabis market

Crabb is explaining the high sales expectations of these pipeline candidates by the fact that both can be used to treat various diseases from different therapeutic areas, such as genetic disorders as well as autoimmune diseases.

Many of the potential patients of the medical cannabis market are children who have a poor quality of life and an urgent need for effective drugs.

Medical cannabis plays a huge role for patients around the globe, including children and adolescents. (Source)

Epidiolex is the only approved product on the market

The approved product Epidiolex® (oral solution for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome and Dravet syndrome, in patients two years of age and older along with the active ingredient cannabidiol from GW Pharma), had already amounted sales of $4.7 million (€4.27 million) in 2018 and is expected to achieve annual sales of $1.9 billion (€2 billion) by 2025 according to the forecast.

However, Crabbe is still seeing market obstacles for cannabis preparations in the high therapy costs, the poor data situation and “confusing or non-existent guidelines.”

(Featured image by Hike Shaw via Unsplash)

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Michael Jermaine Cards

Michael Jermaine Cards is a business executive and a financial journalist, with a focus on IT, innovation and transportation, as well as crypto and AI. He writes about robotics, automation, deep learning, multimodal transit, among others. He updates his readers on the latest market developments, tech and CBD stocks, and even the commodities industry. He does management consulting parallel to his writing, and has been based in Singapore for the past 15 years.