Research suggests that rare cannabinoids may well be the future of cannabis investment, as they not only offer improved health benefits, but also have a significant impact on the markets for pharmaceuticals, CPGs, nutraceuticals, cosmetics and pet products. According to the latest figures, the biosynthesis of rare cannabinoids will generate $25 billion by 2025 and $40 billion by 2040.
The companies that will revolutionize this market are those that offer the best quality and the lowest prices, which means that biosynthetic cannabinoid companies will be the leaders that will invest and capture market share. We will also see significant consolidation of this market between farmers, arable farmers and mine operators, which will increase efficiency and reduce costs.
What are rare cannabinoids and why should we care?
Rare cannabinoids like CBG, CBN, THCV, THCA and others have much better and more specific health benefits than CBD alone. Biotechnology companies like ours, Biomedican, which have their own biosynthesis platform, can produce bio-identical, GMO-free synthetic cannabinoids with 0.0% THC at 70-90% lower cost. Producing 0.0% THC means rare cannabinoids can be added to nutraceuticals, CNG and cosmetics/lotions without changing current cannabis regulations. In addition, we manufacture the same product every time (which is not possible in factories), which is essential for pharmaceutical companies conducting clinical trials.
Why are rare cannabinoids important?
The human body contains several cannabinoid receptors that help regulate critical processes, including learning, memory, neural development, appetite, digestion, inflammation, general mood, sleep, metabolism and pain perception. This important involvement of cannabinoid receptors, which are essential for many physiological systems, highlights their potential as pharmaceutical targets.
Tetrahydrocannabinol (THC), one of hundreds of cannabinoids found in cannabis.
Pharmacological studies have identified several medical uses for cannabinoids that bind to cannabinoid receptors. They have been shown to help treat medical conditions such as childhood epilepsy, glaucoma, neuropathic pain and schizophrenia, and to have tumor-inhibiting effects and help suppress chemotherapy-induced nausea. These ongoing studies are becoming more comprehensive and have the potential to identify therapeutic applications for a number of cannabinoids.
Besides the medical sector, other well-known industries have also adopted the use of cannabinoids. There is a growing demand for cannabinoids in inhalants, in the food industry and in hygiene and cosmetic products. Cannabinoid-based veterinary medicines are also on the rise. The use of natural cannabinoids reduces the need for synthetic alternatives that can have harmful off-target effects.
What effect will this have on the investment market?
Where there is demand, large and growing investments follow. Key players in nutraceuticals, cosmetics, and pet care sectors are driving the demand for rare cannabinoids. We have seen a significant shift in investment from cannabis commodity prices and CBD to new biosynthesis technology that offers much better health benefits and higher yields. These unique properties of rare cannabinoids offer enormous potential for the development of new drugs and supplements to treat various diseases and improve quality of life. This creates a huge global opportunity for all companies in these categories to differentiate their products from the competition.
Structure of cannabidiol (CBD)
There will be big winners and big losers in these markets, but in the end it will be the highest quality and cheapest manufacturers that will capture most of these markets. Biomedican has the best quality, highest yield and lowest production cost in the industry. We believe this will make us the undisputed market leader in the biosynthesis of rare cannabinoids.
Which rare cannabinoid should you invest in first?
Early reports suggest that THCV (not to be confused with THC) may have a variety of health benefits: It can help suppress appetite and lose weight, possibly treat diabetes, and can reduce tremors and seizures caused by diseases such as multiple sclerosis, Parkinson’s disease, and ALS.
THCV has generated explosive interest due to its potential health benefits. We see key players in the nutraceutical, medical and pharmaceutical industries requesting the inclusion of THCV in their product lines. Companies can now produce THCV through biosynthesis, creating an organic, bioidentical pharmaceutical grade compound that is 70-90% cheaper than wholesale prices. This is exactly what the big players on the market want: a pharmaceutical product, a stable product at a much lower price. Current price and quality constraints have limited the production of HFCV, but new developments in biosynthesis have solved these problems, so we expect a tsunami of orders for HFCV in 2021.