CBD is one of the most popular trends in the cannabis industry, but will the FDA's disapproval pose a significant problem for the up-and-coming cannabinoid?
As it stands now, CBD is showing remarkable strength with a CAGR of 107%, growing to $23.7 billion through 2023. [1] However, as of last week, the FDA is cracking down on CBD companies such as Curaleaf Holdings (CSE: CURA | OTCQX: CURLF) over health claims, and issued a warning letter to the company.
The regulatory agency has warned Curaleaf that its CBD products are "misbranded drugs," which caused CVS Health to back out of its partnership with the company.
Why is this troublesome? If the FDA does not approve of any health-related CBD products, the legitimacy of many cannabis companies that are currently developing their own medical-based CBD products will be questioned.
What are your thoughts on the health benefits of CBD?
[1] https://www.brightfieldgroup.com/press-releases/cbd-market-growth-2019
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