Key takeaways
Let’s do a little word problem because nothing goes better with cannabis than a little brain teaser: if the global pharmaceutical industry is projected to reach $1.5 trillion by 2023, and cannabis retail sales in the U.S. are expected to reach $52.6 billion by 2026, would it make sense for Big Pharma to try and take a bite out of the cannabis industry?
The resounding answer is yes. The thing is, cannabis products (CBD in particular) have been proven effective for conditions that are generally treated with pharmaceutical medication. This makes it probable that the use of cannabis for medical conditions could drastically disturb and even displace Big Pharma. Legalizing cannabis has already been found to decrease prescription drug use.
Let’s put it this way: "if all 50 states legalize medical marijuana, the pharmaceutical industry could lose $18.5 billion." That’s a big hit to Big Pharma’s bottom line.
At this point, it shouldn’t be shocking that some of the staunchest marijuana opponents are the country’s largest pharmaceutical companies.
Take Insys Therapeutics, for example. This pharmaceutical company won the prize for the biggest personal campaign donation made in opposition to Arizona’s recreational marijuana initiative back in 2016. As a result, Arizona was the only state where this initiative did not pass.
Wondering why Insys made such a large donation to stop the legalization of marijuana? It just so happens that this pharmaceutical company’s latest drug, Syndros, was actually a synthetic version of THC. The natural magic sauce of cannabis.
By donating a large sum of money, this Big Pharma company was able to stomp out the initiative that would ultimately create serious competition for their synthetic version of the product they were opposing.
It probably won’t come as a shock that a later creation by Insys was another synthetic copycat, only this time, it’s imitation CBD.
What happened next for Insys is extremely telling for where the industry is headed: in 2019, Insys announced it was closing its doors after being hit with several opioid-related lawsuits.
Synthetic marijuana products aren’t the only ones that stand to take a back seat by the legalization of marijuana. One study by Bradford and Bradford found that, in states where marijuana was legal, the prescription of drugs that could effectively be replaced with cannabis-based products decreased substantially.
Opioids are commonly prescribed for severe and chronic pain, but they are equal parts effective and highly addictive. Their dependence has led to more and more deaths in the U.S. In 2021, there were 80,816 overdose deaths involving opioids, an increase from 70,029 in 2020, according to the CDC.
Another study found that "legalizing medical marijuana was linked to an 8% reduction in opioid overdose mortality and a 7% decrease in the number of dispensed opioids". In Colorado, recreational marijuana use being legalized was linked to an extra 7% decrease in opioid overdose mortality and a 6% decrease in opioid prescriptions within the Medicare and managed care realms.
Some of the most common conditions that cannabis products are thought to help relieve include:
As you can imagine, if medical marijuana becomes more prescribed by medical professionals than pharmaceuticals, Big Pharma stands to suffer some serious hits.
Big Pharma can’t throw money around in opposition of legalized marijuana forever. The industry has deep pockets and is on its way to employing the “if you can’t beat ‘em, join ‘em” approach.
Pharmaceutical companies are already starting to release FDA-approved CBD-based drugs, and even more are pushing for FDA-approved CBD-based products to be rescheduled as II-V drugs. This would allow the FDA, doctors, and pharmaceutical companies to gain control over the production, prescription, and distribution of this highly beloved product, paving the way for complete pharmaceutical regulation.
To add insult to injury, it seems as though Big Pharma is giddily awaiting this day. The industry is acquiring patents to secure the rights to various CBD extraction methods and concoctions designed to treat myriad ailments.
A drug called Epidiolex is the only CBD prescription that has been approved by the FDA to treat seizures, and it’s owned by GW Pharmaceuticals.
As more pharmaceutical companies try to get in on FDA approval, they will continue to lean on drugs that contain synthetic versions of CBD and THC. Unlike their natural counterparts, the unfortunate downside is that these drugs can cause serious side effects, such as abdominal pain, dizziness, and headaches. Not a great alternative to the real thing.
When it’s all laid out on the table, it’s crystal clear why our largest pharmaceutical companies are so aggressively opposed to the legalization of cannabis. It’s bad for business. Period.
The implications of this realization—that the creators of medications that are supposed to help and heal people are primarily interested in greasing their own palms—can be sobering at best. Hopefully, if Big Pharma is going to continue lobbying against the legalization of marijuana, they are held responsible for proving that their products are better and safer than the real deal.
There are lots of considerations for today’s cannabis businesses, including where products fit into the larger healthcare industry and all the laws and regulations that are always changing.
To help you and your customers make sense of it all, you need a better approach to content. Your inbound marketing strategy should account for current sentiments surrounding cannabis, new legislation, and incoming research.
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