Shares of Canopy Growth Corporation (TSE:WEED, NYSE:CGC) firmed up Tuesday in premarket trade after the Canadian cannabis grower said it had completed a legal transfer of cannabis products to a research partner in the US.
Just last month, shares in Tilray Inc (NASDAQ:TLRY) had shot up after it announced that the US Drug Enforcement Administration (DEA) had approved the import of a Canadian cannabinoid study drug made by the company for a clinical trial at the University of California, San Diego.
Both Canopy Growth and Tilray’s shipments were for the sole purpose of supporting medical research and development, with permits from the DEA.
"The United States presents a unique market opportunity and as the most established cannabis business in the world we, in turn, offer a unique ability to advance standardization, IP development, and clinical research that can improve the understanding and legal application of cannabis and cannabinoids," Mark Zekulin, Co-CEO of Canopy Growth said in a statement.
READ: Tilray receives approval from US to import a medical cannabis study drug, shares soar almost 30%
"By engaging in the market through federally legal means and with the right partners, we can create a US-based centre of expertise while also supporting our rapidly expanding global business," added Zekulin.
Shares of the Canadian cannabis company climbed 1.5% to $51.19 before the opening bell.
Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, has an Outperform rating on the stock and expects the $4 billion cash infusion from Constellation Brands, the maker of Corona beer, to give Canopy Growth a head start in international markets.
Contact Uttara Choudhury at [email protected]