The surprise election of Donald Trump has gotten most of the election-related headlines following Tuesday’s vote. However, Tuesday was also a landmark day for the marijuana legalization movement. Marijuana scored medical and/or recreational victories in eight of the nine states that voted on the issue, tremendous news for the industry.
Pharma, Weed Policies And Trump
To compound the good for pharma stocks working on cannabinoid drugs, Trump’s election provided a major boost to the drug industry as well. One of the central issues of Hillary Clinton’s campaign was drug pricing, but it doesn’t seem to be a priority for Trump.
Publicly Traded Pot Stocks Go High
Marijuana drug companies GW Pharmaceuticals PLC – ADR and Zynerba Pharmaceuticals Inc gained 6.0 percent and 3.0 percent, respectively, on Wednesday. Both stocks appeared poised to open Thursday’s session slightly higher as well. These pharma stocks traded mostly in line with non-marijuana pharma stocks like Merck & Co., Inc. and Pfizer Inc. , which gained 6.5 percent and 7.1 percent, respectively, on Trump's election.
While the election results were good news for marijuana drug stocks, other marijuana traders took the opportunity to cash in on huge 2016 gains. The MJIC U.S. Reporting Marijuana Index closed Wednesday’s session mostly flat but near 52-week highs.
When asked about the situation, 420 Investor Alan Brochstein told Benzinga, "Biotech rally, though there has been some speculation that the new President, with control of Congress, could be negative for state-legal cannabis."
Over-The-Counter Cannabis Stocks Sell Off
Red hot marijuana stocks such as Kush Bottles Inc , Cannabics Pharmaceuticals Inc and Cannabis Sativa Inc weighed heavily on the index, each selling off more than 10 percent on Wednesday as traders locked in massive 2016 gains.
Image Credit: By MatthewVanitas (Own work) DC Cannabis Campaign from 2014 [CC BY-SA 3.0], via