Canopy Growth Corp (NYSE: CGC) is having a relatively strong start to the trading session in the pre-market hours this morning, and for good reason. The comapny announced a partnership that will focus on medical marijuana. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from CGC stock as a result; and
- what we’ll be watching for ahead.
CGC Announces Medical Marijuana Partnership
As mentioned above, Canopy Growth is having a strong start to the trading session in the pre-market hours this morning after the company announced a new partnership. In a press release issued early this morning, the comapny said that its wholly-owned subsidiary, Spectrum Cannabis has partnered with the Ontario Long Term Care Association. The parternship comes by way of an unrestricted educational grant to pursue the development and implementation of a long-term care medical cannabis pilot stody and care pathway for utilization in Ontario long term care homes.
In the release, CGC said that the six month pilot aims to measure how medical cannabis use can potentially displase other, less-desirable treatments. The study will focus on cannabis as a treatment for both pain and cognitive function and will include residents in a select group of homes.
In the release, CGC said that it will provide all of the product from its Spectrum Cannabis brand. OLTCA will be in charge of development and implementation of the pilot. In a statement, Mark Zekulin, President and co-CEO at CGC, had the following to offer:
There is clearly an interest in the long-term care space to explore medical cannabis as an alternative to traditional medications for pain and degenerative cognitive function… The pilot study we’ve announced today is the first step in developing an evidence-based, best practice approach to medical cannabis that will result in consistent care for thousands of seniors and ultimately improve quality of life and outcomes in long-term care homes.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that it’s important to keep a close eye on the news. After all, the news moves the market. In the case of Canopy Growth Corporation. the news proved to be positive. After all, this new partnership and pilot study could lead to the company’s products being used as treatments in elderly homes. So, it comes as no surprise that excited investors are sending the stock on a run for the top this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:13), CGC is trading at $47.10 per share after a gain of $1.36 per share or 2.97% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CGC. In particular, we’re interested in following the story surrounding the new partnership as well as the company’s activities to prepare for the coming recreational cannabis market open in Canada. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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