FSD Pharma Pivots From Cannabis To COVID-19 Treatment

Mar. 28, 2021 8:02 PM ETFSD Pharma Inc. (HUGE)2 Comments
Alan Sumler profile picture
Alan Sumler
919 Followers

Summary

  • FSD Pharma is a biopharmaceutical research company specializing in medical applications of cannabinoids.
  • The company found a possible treatment for COVID-19 and is attempting a Phase II study.
  • The company is undertaking another study for the treatment of illness in cats and dogs using cannabinoids.
  • The company’s financials are in need of improvement.
  • I recommend you watch the developments from this company.

FSD Pharma (NASDAQ:HUGE) used to grow and process medical cannabis in Canada to help fund their research efforts in cannabinoids and the human endo-cannabinoid system. Although the company did not continue in their efforts to grow and process cannabis, they did find a chemical compound that reacts with the CB2 endo-cannabinoid receptors. The company ended their cannabis operations and put the proceeds towards a study using this compound to treat COVID-19 symptoms. They are beginning an additional study for the treatment of dogs and cats using the same compound.

FSD Pharma has less impressive financials because of their pivot, which cut off revenue streams. The company survives on its increasing valuation, which allows for greater direct offerings. Their COVID-19 treatment has great promise which will bring profits in the future, but, if the study begins in 2022, then that profit comes much later. The other study, on the treatment of dogs and cats, may come to fruition sooner with an end product. Either way, the company must find a way to stay afloat. It is possible that their proprietary strain of PEA can be produced and sold on the supplements market or new investors may be found to sponsor these studies.

For now, we should keep a close eye on FSD Pharma and their announcement. The stock has potential to rally and undergo an uptrend. For now, the stock has been on a one-year downtrend with a few rallies. The fundamental and technical signals are not strong enough to set up a long term or short-term investment strategy. I maintain that their research is very impressive and is worth following.

Cannabis research has looked at synthetic production of the THC trichomes for better control of variables and consistency. FSD Pharma has considered these limitations in using THC as a medicine in

This article was written by

Alan Sumler profile picture
919 Followers
Welcome to the home of The Cannabis Report: a monthly report on the cannabis industry. I am an analyst and consultant in the cannabis industry. I have contributed to High Times Magazine. I currently have a book out, Cannabis in the Ancient Greek and Roman World. I am most interested in technical stock analysis, option strategies, small cap strategies, and emerging markets. Feel free to contact me with any questions about the cannabis industry or publicly traded stocks in the cannabis industry.

Disclosure: I am/we are long HUGE. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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