Over the last two years, we have learned a lot about the medical benefits associated with marijuana.  From Israel to the United States, studies focused on these benefits continue to provide positive results.

The legal medical cannabis industry continues to expand and this has created new opportunities for investors. Today, we have highlighted a new cannabis business that has recently come to light and have provided some insight into this firm and the associated opportunity

Phivida: Focused on a Burgeoning Market

The company, Phivida Holdings, is an emerging leader in the alternative health and wellness sector focused on the medical cannabidiol (CBD) hemp oil extract market. Phivida is becoming a global leader in the production, manufacturing and marketing of functional foods and natural health products, while advancing clinical research and investing in the communities in which the company operates.

Over the last few years, CBD has become one of the best known chemical compounds in the cannabis plant and this is primarily due to its medical benefits. CBD is a cannabis compound that does not have the primary psychoactive ingredient which gets the user high.

CBD is an appealing option for patients looking to treat ailments such as pain, anxiety, psychosis, seizures, spasms, and other conditions. The benefits associated with CBD cannot be minimized. CBD is an effective anti-inflammatory and its anti-seizure and anti-epilepsy properties help alleviate such symptoms in children and adults.

Nutraceuticals: A $285 Billion Industry by 2021

CBD is commonly associated with the nutraceutical industry and this segment of the market has been consistently recording above-average growth. 

In March, Research and Markets released a new report published by BCC Research which said that the global nutraceutical market should be a $285 billion market by 2021.

We expect to see CBD products accelerate growth within this market and increase share of the total global nutraceutical market.

An Emerging Opportunity

Phivida is utilizing a multi-faceted sales strategy and targeting consumers through its online store, dispensaries, health clinics, specialty grocery stores, and mass marketing channels.

Cannabis has become big business on the west coast of the United States and Phivida is targeting some of the largest markets. The company will be focused on California, Colorado, Oregon, and Washington. We are favorable on this leverage as the aggregate population of these states is north of 55 million.  

Phivida is led by a management team that has a proven track record of success. We are favorable on the team and their ability to execute and create value for shareholders. The company is comprised of three divisions, each of which can create value for the entire business.

• Phivida Organics provides wholesale CBD-hemp oil extract to product manufacturers
• Phivida Nutrition provides product development and brand management of an innovative mix of CBD- hemp oil extract infused functional foods and beverage products. The products include three flavors of CBD-hemp oil infused vitamin juice, ice tea, and nutritional shakes.
• Phivida Enhanced provides product development and brand management of an innovative mix of enhanced foods/supplement products. The products include three flavors/concentrates of tinctures, vitamin shots and salves.

Offers High-Quality CBD Products

We are favorable on Phivida’s suite of products and expect to see continued demand from consumers. The company provides a professional product that has a wide variety of uses and applications.

The company has seen strong demand for its tincture product line and we expect to see more products launched over the coming months. Phivida is focused on providing a high-quality product that consumers can trust.

Phivida infusions are professionally formulated by health care practitioners, made with premium ingredients, tested for quality and safety, and manufactured to GMP standards.

A Company to Watch

Phivida offers investors exposure to a massive market and we are favorable on the company’s ability to increase its share within it.

Phivida provides investors with a differentiated opportunity and we favorable on the company’s ability to capitalize on a multi-billion-dollar market. As the legal cannabis market continues to expand, companies like Phivida will be well-positioned to benefit from such growth.