JAZZ - My Top Cannabis Stock to Buy in 2023 and Hold For 10 Years
2023-03-21 06:45:00 ET
A few years ago, the cannabis industry attracted much interest from investors following significant regulatory changes in Canada and anticipated progress elsewhere in developed countries. However, this interest has now died down, and many of the major companies in the industry have largely flopped. Even so, the sector has attractive opportunities, and some companies seem in good positions to pounce. Let's look at one of the more prominent cannabis players around: Jazz Pharmaceuticals (NASDAQ: JAZZ) . Here's why this is my top marijuana stock to buy and hold.
Let's first review how Jazz Pharmaceuticals entered the cannabis market. In May 2021, the company acquired GW Pharmaceuticals, a drugmaker focusing on developing cannabidiol (CBD)-based medicines. The key asset from that transaction was Epidiolex, a CBD-based therapy indicated to treat a couple of rare forms of childhood epilepsy.
Epidiolex has a claim to fame: It was the first CBD-based treatment to win approval from the U.S. Food and Drug Administration (FDA), an honor it earned in 2018. There lies the difference between Jazz Pharmaceuticals and other cannabis companies. Jazz operates in biotech, a highly regulated industry. The company needs to meet strict standards when developing its products, and once it does so, it can launch its medicines on the market.
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My Top Cannabis Stock to Buy in 2023 and Hold For 10 Years