Big Pharma Deal With ABcann is Imminent! The recent appointments of Big Pharma names Barry Fishman and Paul Lucas to ABcann is to set up a deal with a big pharmaceutical company. It's no secret the major players in the pharmaceutical, alcohol, tobacco, and food industry are going to be making big acquisitions in the marijuana sector as Canada moves closer to recreational. Big Pharma wants in and ABcann's consistent organic high yielding product makes a lot of sense since their growing technique puts them in a class of their own.
Barry Fishman the ex CEO of Teva, currently a $12 billion dollar pharmaceutical company that produces generic drugs, specialty medicines and is the distributor of the Syqe precision dosage inhaler to which ABcann has been supplying product for is a good example of a possible Big Pharma deal to enter what is sure to be an industry that will experience massive growth for many years to come. Teva’s market cap since 2015 has been shrinking along with many other pharmaceutical companies and will continue to do so since prescriptions for opioids, antidepressants, and others have seen a rapid decline in patients that switch to marijuana for medicine. Big Pharma wants in big time and ABcann is a perfect candidate. In the next several months I wouldn't be surprised to see a Big Pharmaceutical company make a deal with ABcann to fully develop their 1 million square feet of growing space to ensure a constant huge supply of organic medicinal grade marijuana.
The next couple of years is going to be the determining period of whether many of these companies will thrive. The biggest challenge many are currently facing is producing a high quality product that's consistent in levels of THC and Cannabinoids per strain batch over batch to maintain customer retention. There will be many that will lose crops and many that use chemicals and pesticides to prevent such because as Mike Dixon from Guelph University bluntly put it :
"Much of the work now is largely based on anecdotal bullshit from people who think they have it all figured out and did all their research in their basements,"
So true! As an early investor in this sector it was common for large crop losses amongst these companies and now the majority use chemicals and pesticides to prevent crop loss to moulds and pests. As an investor I look for a niche that a company provides where most can't - and that's producing a consistent organic product! The organic markets for food and beverage products has experienced annual double digit growth over the last ten years. The global sales for organic foods in 2015 amounted to $77 billion, by 2025 it’s projected to reach $325 billion. The conscientious consumer who has the funds to pay for a higher price but much better product will almost always do so. Once recreational is legalized ABcann’s superior product is going to be in such huge demand that the Kimmet facility will be fully built out in the next 2 years and a Big Pharma deal is going to make it happen! Abcann will be a 10 bagger in under 2 years in my opinion.