The prices of a handful of high-profile marijuana stocks are declining after a new warning about CBD from the FDA.
The health industry watcher has put out a new “consumer update” about CBD, the nonpsychoactive ingredient in cannabis which some say has medicinal qualities.
The FDA issued an alarming warning about the substance. It said that CBD can lead to liver damage, cause major side effects if taken along with other drugs, and trigger mood swings. The government organization highlighted that these effects could hit users without warning.
Among certain people, CBD is a wildly popular part of certain types of products like ointments, beverages and food. Makers routinely say that taking the substance can treat a host of health problems.
The FDA emphasized in its statement that “there is limited information about CBD’s effects on the human body.” They went on to recognize the large public interest in cannabis and cannabis products, especially CBD, but said “there are lots of questions about the safety and science of CBD products.”
Among these are worries over long-term regular use and its effect on children, and possibly the male reproductive system.
The regulator stated it is actively working to increase its knowledge of CBD.
As of today, the FDA has approved only one CBD-based drug, Epidiolex from GW Pharmaceuticals (NASDAQ:GWPH). The drug has been a huge hit, but its use is limited to treating two rare forms of epilepsy.
The FDA’s statement comes after the regulator’s former commissioner, Scott Gottlieb, put out a warning of his own.
On twitter, Gottlieb said CBD’s “safety must be first priority. And any claims need to be founded in science. CBD is not safe and has mostly unproven benefits outside a tiny group of closely studied circumstances.”
Given that most marijuana stocks sell CBD products, a lot of them are down late Tuesday after the FDA’s announcements. Tilray (NASDAQ:TLRY) is dropping 3% while Canopy Growth (NYSE:CGC) is down by a little more than 1%. Meanwhile, Charlotte’s Web (OTC:CWBHF), the leader in the CBD industry, is lower by 8%.
But not all stocks that benefit from marijuana are down. GW Pharmaceuticals is up marginally on the day since it is sells the only FDA approved CBD product.