There are a number of firms which depend on Marijuana Inc. (NASDAQ: NJNA) as raw material for its medical processes. These companies include GW Pharmaceuticals (NASDAQ: GWPH), Aurora Cannabis (NASDAQ:ACBFF) and Axim Biotechnologies (NASDAQ:AXIM). The three companies have a common interest. Their main interest is manufacturing or processing of new drugs for different purposes using Marijuana.
Most of these companies depend on how its stocks are faring in the stock markets because they have a relatively huge market caps if one compares them with other Marijuana Stocks. In the recent days these firms have been losing their grounds; they have been losing millions of dollars because of the unfavorable bottom lines associated with Marijuana use. It is indeed at these point that the investors have become worried about investing their capital on Marijuana Stocks.
GW Pharmaceuticals Quench its Loses with New Cannaboid Product (Epidiolex)
GW Pharmaceuticals has been eagerly waiting for the approval of its one products, Epidiolex, a product which if approved would salvage the company from its losing position. It is clear according to the financial records that the company has reported to lose $82.2 in the year 2016. This follows after a consecutive loss in 2013, 2014 and 2015. With such a consecutive lose, it is expected that many investors will have to consult and think twice before investing in such company’s stocks. But with the approval of the new medical product, it is expected that the sales on the new drug could reach $3 billion a year.
Axim Biotechnologies Scaring Away Potential Investors
Axim Biotechnologies is also another company struggling to remain standing. its sale were not very promising during the year 2016 but with the current strategies of developing Marijuana-based drugs, its financial position is expected to improve from a loss of $5.8 million in 2016 to a positive figure not clearly expressed. The investors have however taken caution because of the constant loss making by this firm despite the fact that Axim is eyeing on pocketing $1 billion by 2020.
Aurora Cannabis Experience Losses and Now Fights for legalization of Medical Marijuana
On the other hand, Aurora Cannabis is fighting to legalize Medical Marijuana in Canada, a move which would see it being the top company providing medical Marijuana in Canada. As at December 30, 2016; Aurora reported its financial losses estimated at $8.3 million. This was another reason behind why investors were right in worrying about investing in stock of such a company.