- WHO issued a recommendation to make cannabis a less restrictive drug
- Adoption of the WHO recommendations could open the doors to further reforms around CBD in the US and globally
On January 24th, WHO Director General Dr. Tedros Adhanom Ghebreyesus sent a letter to secretary-general of the United Nations, António Guterres recommending that cannabis and its other forms (ie. extracts) be rescheduled as less restricted controlled substances.
The WHO recommendations call for cannabis and its chemical components to be rescheduled under international drug agreements. They advise that whole-plant cannabis as well as cannabis resin be deleted from the most restrictive category (Schedule IV).
Keep in mind: In the US, this restrictive drug ranking is opposite meaning the most-restricted drugs are considered “Schedule I”. The UN defines “Schedule IV” as its most-restricted category and “Schedule I” as the least-restricted.
If the WHO recommendations are adopted, cannabis and its resin would instead be designated as least-harmful, Schedule I substances under the UN treaty. THC and its isomers would also be moved to Schedule I of the treaty. Extracts and tinctures of cannabis would be removed from Schedule I of the 1961 treaty. Pharmaceutical preparations that contain THC would be placed in Schedule III.
In the US, the Food and Drug Administration has issued similar advice, suggesting last year in an internal letter that CBD “could be removed from control” under the Controlled Substances Act.
Adoption of the WHO recommendations could open the doors to further US reforms around CBD. While products containing the cannabinoid are widely available online and at stores throughout the country, their legality is still uncertain.
Such moves are bullish for cannabis companies that are now becoming global. Canopy Growth (CGC) and Aurora Cannabi (ACB).
Article by: Mick Ross
Mick is currently a full-time investor and formerly a buy-side analyst (2yrs) covering healthcare companies. Before that, he was a salesperson at a bulge-bracket firm, based in Dallas, Texas. Mick blogs to clarify and synthesize his investment thought process and to elicit feedback; additionally he likes to connect with other investors and swap ideas.