
A study by finance and economics experts at California Polytechnic State University and the University of New Mexico has concluded that legalising cannabis will reduce sales of conventional pharmaceuticals by billions of dollars. Previous studies have found that access to cannabis reduces the use of specific types of medication, but this is the first study to look at the overall effect of cannabis on pharmaceutical companies across products and types of patients.
With recreational and medical marijuana now becoming legal in many states, the newly formed legal cannabis industry is impacting on the stock value of many pharmaceutical companies. The researchers argue that their findings highlight the market's recognition of cannabis as an alternative to conventional medicines, also pointing to the need for further research into the therapeutic potential of this plant.