Cannabis stocks fell sharply on Friday after the Federal Drug Administration said it was still uncertain how safe cannabinoid found in marijuana is for human consumption.
Tilray (NASDAQ:TLRY) fell 3%, while Aurora Cannabis (TSX:ACB), Cronos Group (NASDAQ:CRON) and Canopy Growth Corp (NYSE:CGC) fell 4%.
The FDA got its first public hearing on cannabidiol, one of the most common chemical compounds found in marijuana, underway, with a host of cannabis companies seeking to sway the FDA to permit the sale of cannabis-derived dietary supplements and foods products.
But before the arm-wringing has even begun, the agency warned there is still much to find out about the risks of cannabis food products.
In prepared remarks, Commissioner Ned Sharpless said there are "real risks associated with (THC and CBD) and critical questions remain about the safety of their widespread use in foods and dietary supplements."
While medical marijuana has been permitted in a number of states to treat various ailments, including severe pain and nausea, cannabinoid is not allowed in dietary supplements or foods.
Friday’s hearing is unlikely to prove anything more than fact-finding mission for the agency and many say this is just the first step in a long battle for cannabis companies' attempts to get their marijuana-infused munchies legalized.
