Investing.com – Cannabis stocks fell sharply on Friday after the Federal Drug Administration said it was not yet known how safe the cannabinoid found in marijuana is for human consumption.
Tilray (NASDAQ 🙂 fell 3%, while Aurora cannabis (TSX :), Cronos Group (NASDAQ 🙂 and Canopy growth Corp (NYSE 🙂 fell 4%.
The FDA obtained its first public hearing on cannabidiol, one of the most common chemical compounds found in marijuana, in progress, with a large number of cannabis companies seeking to influence the FDA to allow the sale of food supplements derived of cannabis and food products.
But before the runoff of the arms has begun, the agency warned that there is still much to discover about the risks of cannabis food products.
In prepared comments, Commissioner Ned Sharpless said there are "real risks badociated with (THC and CBD) and there are critical questions about the safety of their widespread use in food and dietary supplements."
While medical marijuana has been allowed in several states to treat various ailments, including severe pain and nausea, cannabinoid is not allowed in dietary supplements or foods.
It is unlikely that Friday's hearing will show anything other than a fact-finding mission for the agency and many say that this is only the first step in a long battle over attempts by cannabis companies to legalize their marijuana-infused snacks.
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