Legal Cannabis Could Lower Demand For Medical Pot

Article by Solomon Israel, Leaf News

Legal cannabis could lower demand for medical pot By: Solomon Israel Mario St. Michel Mario St. Michel, quality control manager, examines some of the cannabis plants at the Verdelite facility Wednesday, February 20, 2019 in Sainte-Eustache, Que. Emerald Health Therapeutics, Inc. today announced the launch of Verdellite Sciences Inc., a wholly-owned, Quebec-based production subsidiary licensed by Health Canada. Formerly known as Agro-Biotech, Verdelite currently produces high-grade dried cannabis for medical and adult-use purposes. Ryan Remiorz

Canadian medical cannabis registrations will shrink by nearly 18 per cent over the coming five years, predicts a forecast released Thursday by U.S.-based cannabis research firms Arcview Market Research and BDS Analytics.

The latest “State of Legal Cannabis Markets” report cites a figure of 359,292 people using Health Canada’s medical cannabis system in 2018, a figure initially reported by Health Canada as the number of active medical cannabis client registrations with licensed cannabis producers as of December 2018. (Some clients may have multiple registrations with multiple producers and others are registered to grow their own, so that number may not represent Canada’s exact number of registered medical cannabis users.)

Arcview sees that figure slipping to 295,934 by 2024; it expects annual spending on medical cannabis to fall accordingly from US$457 million in 2018 to US$381 million in 2024. In Canadian dollars, that’s a decline from $607M to $506M.

The projection is informed by declining numbers of registered medical cannabis users in U.S. states that have legalized cannabis for medical purposes and later gone on to legalize for the recreational, or “adult-use” market, said David Abernathy, vice-president of data and government affairs with ArcView Group.

“In some states, particularly states where it’s very easy to maintain medical status or where there’s a big tax incentive for being a medical (cannabis) patient, we’ve seen less attrition,” he said.

“And in other states, notably California, where even though there is a minor tax incentive for maintaining medical status, the hurdles became significantly harder at the same time as adult-use (cannabis sales) kicked in, and we saw an almost-total dropoff. There are negligible numbers of people operating in the medical system in California now. Almost all of the sales are happening in the adult-use market.”

But the projected decline in medical cannabis registrations doesn’t necessarily mean fewer Canadians will actually be using cannabis for therapeutic purposes, Abernathy explained.

“It’s less a question of having fewer actual medical patients, it’s just a question of having fewer people who go through the extra trouble of being registered as a medical patient,” he said.

Legal access to cannabis for medical purposes in Canada requires that kind of extra trouble: Patients first need a written authorization from a physician or a nurse practitioner, and must register directly with a government-licensed cannabis producer before they can order medical cannabis for mail delivery only. Canadians can also apply to grow their own medical cannabis or have someone else grow on their behalf, which adds an extra layer of bureaucracy.

Abernathy said Arcview’s projection showing a declining number of registered medical cannabis users in Canada could change if it becomes easier or harder to register. He also expects that Canada’s medical cannabis market could shrink if regulators approve new forms of cannabis-derived pharmaceutical drugs through the normal process for drug approvals, which would permit regular prescriptions.

Read the full article here.

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