One company with a cannabinoid product actually opposes marijuana legalization. Insys Therapeutics (NASDAQ: INSY) doesn’t want more states to legalize weed and has urged the U.S. Drug Enforcement Agency (DEA) in the past to not lower the bar for some marijuana laws. Here’s how marijuana legalization could hurt Insys’ fortunes — and perhaps those of other biotechs with cannabinoid products, especially GW Pharmaceuticals (NASDAQ: GWPH).
Why Insys wants to just say No?
Insys donated $500,000 in 2016 to Arizonans for Responsible Drug Policy, a group opposing legalization of recreational marijuana in Arizona. The company’s investment paid off: Arizona voters rejected the proposition for legalizing recreational marijuana. However, the state’s voters narrowly approved the legal use of medical marijuana in 2010
Why did Insys Therapeutics fight against expanded marijuana legalization in its home state? The company’s official line was that the proposition on the ballot last year failed “to protect the safety of Arizona’s citizens, and particularly its children.” However, Insys also said that the company “firmly believes in the potential clinical benefits of cannabinoids.”
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