Legalization of Medical Marijuana

4/16/16

Executive Summary
Marijuana is one of the largest social topics
of todays time, should it be legal or not?
Many states in the nation have already
made medical marijuana legal and other
states are going farther and making
marijuana legal for recreational use. As of
now, marijuana is still under federal law as a
schedule 1 drug but lawmakers as well as
citizens are in the push to change that.
Companies, mainly pharmaceutical
companies are asking themselves the
question, should we invest in marijuana? The
research presented will shed some light on
this growing topic.
Brandon Shaw
U.S Drug Corp.

Legalization of Medical
Marijuana
Research study to determine if investing in medical
Marijuana is profitable.

Legalization of Medical Marijuana

4/16/16

Table of Contents

Introduction

History of Marijuana

Profits of Investing in Medical Marijuana

Compliances & Regulations

Marijuana for Prescription & Medical Use

Conclusion

Works Cited

10

Legalization of Medical Marijuana

4/16/16

Introduction
Rhetorical Situation:
You are a physician who has been hired by the president of an international drug
company to research the feasibility of the federal government making medical marijuana legal.
The president of the company knows if this happens, his company could either ride the wave or
go under. In your report need to determine whether or not this is a real possibility and advise the
president on how his company should proceed. This article discusses the recent bill introduced
and the obstacles it faces.
Methodology:
Researching the history, uses, profits and social aspects of marijuana and how this can tie
into business. I will be using specific accredited sources as I try to point out the pros and cons
or investing into the marijuana business and the potential positive and negative impacts it could
have from a social and business aspect.

History of Marijuana
The history of marijuana dates back to as early as 2737 B.C Marijuana has been used as
an agent for achieving euphoria since ancient times; it was described in a Chinese medical
reference traditionally considered to date from 2737 B.C. (narconon.org). Traditionally
marijuana was first used for medicinal purposes in which the Chinese used it to help with

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multiple conditions such as malaria, gout, rheumatism, etc. It wasnt until 1545 A.D when the
Spanish brought marijuana to the New World and as it spread through the New World, by 1611
the English used it as a major cash crop, alongside of tobacco and cotton, as marijuana was used
as source of fiber. By the late 1800s, hemp took cottons roll as the major cash crop.
Additionally early medicines contained marijuana in them, just like the Chinese, the Americans
took marijuana as a medicinal drug until The Controlled Substances Act of 1970 classified
marijuana along with heroin and LSD as a Schedule I drug. (narconon.org). After this point
that marijuana became a schedule 1 drug, the war on marijuana began. Today there are two sides
to decriminalization of marijuana and is a highly debated subject. High-school and college age
kids are the highest users of marijuana since its so readily available and this is one of the major
factors that can be brought up when talking about making marijuana legal. People opposing
marijuana can say that underage children have easy access to it and that its causing an issue in
todays youth and on the opposition people want it to be decriminalized because of the fines and
record one can have if caught with marijuana, it has the potential to make it very difficult to find
a job. Marijuana use has positive and negative impacts but the overall use and medical potential
it has will most likely outweigh the negatives.

Profits of Investing in Medical Marijuana

Since marijuana came to the United States it has been sought after by millions of people
and the profits that come with the sale can be tremendous. Different states every year are
making medical marijuana legal and some are making the drug legal for recreational use (pubic
use). The high demand for marijuana and the availability of it in conjunction with it becoming
legal has the potential for large yearly profits; the already multi-billion dollar industry has more

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room to grow as legalizing it is becoming a reality. Marijuana stock has the potential to yield
multi-year growth as it is one of the top promising industries to invest in.
According to John Persinos, an editorial manager at thestreet.com, he quoted in his
article This Is the Only Stock to Buy Right Now to Profit From Legalized Weed that According
to the latest research from ArcView Group, a cannabis industry investment firm based in
California, legal marijuana is the fastest-growing industry in the U.S. ArcView reports that the
U.S. market for legal cannabis grew 74% in 2014 to $2.7 billion, up from $1.5 billion in 2013.
See graphic below.
This same company ArcView Group also predicts that If legalization spreads to all 50 states,

marijuana could generate more annual revenue than the organic food industry. Fueling the trend
are states that covet the billions in tax revenue. Investing in the marijuana industry has
potential for huge yearly profits and now is the time to do it, U.S Drug Corp is considering

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investing in this industry and with these already stated facts and the constant flow of new facts
that are coming, and it will be an easy choice for U.S Drug Corp.
Compliances & Regulations
The compliances and regulations companies must follow with regards to marijuana
growing and marijuana sales can be very detailed and must be followed very closely whereas the
consequences of not could result in criminal & financial charges. Doug Fisher from Marijuana
Business Daily is an advisor on some of the regulation that is most important when investing or
doing business with marijuana. Obvious enough, drugs in the hands of minors is a big topic in
todays time and with the rising availability of drugs in high schools and middle schools it is one
of the most important factors that a company must think about to make sure this does not happen.
In the guest column the Fisher writes 5 Legal and Compliance Tips for Medical Marijuana
Entrepreneurs his number one advice is to create and anti-money laundering program, which is
a program to keep all crime out of doing business with marijuana and keeping marijuana out of
the hands of minors. This program also allows the company to show proof that the profit of this
business is coming from legal activities. Fisher states To avoid the risk that the government
will try to seize your assets as proceeds of a crime, you will need to be able to affirmatively
demonstrate that the businesses your funds support dont cross into the eight stated government
enforcement priorities (e.g, keeping marijuana out of the hands of minors). Since marijuana is
not legal under federal law, companies need to start with local and states laws in which they will
be doing business under. With the local and state laws where marijuana is legal to grow &
distribute the regulations set by that local & state governments depends on 3 things; public
safety, public health and law enforcement. Some states are more lenient in regulatory laws than
others, so Fisher suggests doing business in a state with strong regulations in the marijuana
industry as it will take the view off of your company/ business from the federal government.

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Marijuana for Prescription & Medical Use

The pharmaceutical industry, the most powerful and profitable industry in the world. There are
medicines made by pharmaceutical companies that can treat or cure almost every know disease,
virus, infection or illness. Last year the world largest drug company Pfizer had annual revenue
of $48.9 Billion (Pfizer.com) and which 42% of that was profit (bbc.com) (not including animal
health business). The graph below shows the pharmaceutical profits in 2013 in comparison with
the other top industrial sectors.

Recently
the

in
past

decade

marijuana has
show

been
to help with
everything from seizures in children to

helping with cancer. Additionally in the past 5 year more and more research has been underway
on the use of marijuana with treatments of multiple illnesses and this is why the pharmaceutical
industry is getting nervous, they are afraid that marijuana as a natural cure for illnesses can take
away from their extremely large profits. An article by Jen Christensen from CNN.com, (10
diseases where medical marijuana could have impact) highlights some intriguing details on how
marijuana can be of medical use. There are other chemical than just THC in marijuana plants
and these other chemicals are what scientists and doctors are looking at and that can be used as

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medicine, Christensen quoted a Dr. Sue Sisley on how medications effected some of her patients,
There's just a few medications on the market that work, and even these can be inadequate,"
Sisley said. "They end up getting stuck on eight, 10, 12 different medications, and after taking so
many, suddenly they're like zombies. For example, look at cancer, cancer is a killer by all
means and a common treatment is chemotherapy, The costs for chemotherapy can vary as well,
with some estimates as high as $30,000 over an eight-week period. The average cost for an initial
treatment is approximately $7,000. (asbestos.com). Independent studies have been done with
cancer and marijuana and here are some of Dr. Sisley findings, Animal studies have shown
some marijuana extracts may kill certain cancer cells. Other cell studies show it may stop cancer
growth, and with mice, THC, the psychoactive ingredient in marijuana, improved the impact of
radiation on cancer cells. Marijuana can also prevent the nausea that often accompanies
chemotherapy treatment used to treat cancer. This is just one concrete example of how
marijuana can be used as medicine, there are countless other illnesses that marijuana can possible
cure and treat.
Conclusion
Either way U.S Drug Corp has a decision to make; either proceed with investing in
medical marijuana use or to back out. Multiple indicator facts and studies show that marijuana
has the potential to change the pharmaceutical and the financial industry, many independent
studies and research prove that marijuana investments can be beneficial to businesses, both for
medical use, and for profit. Marijuana should be made legal and U.S Drug Corp should highly
consider investing into the marijuana industry.

Legalization of Medical Marijuana

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Works Cited

1. "Marijuana History." RSS. Web. 20 Apr. 2016.

2. Persinos, John. "This Is the Only Stock to Buy Right Now to Profit From Legalized
Weed." TheStreet. TheStreet, 23 Dec. 2015. Web. 20 Apr. 2016.
3. Fisher, Douglas. "Guest Column: 5 Legal and Compliance Tips for Medical Marijuana

4.
5.
6.
7.

Entrepreneurs - Marijuana Business Daily." Marijuana Business Daily. 06 May

2015. Web. 10 Apr. 2016.
Pfizer Financial Reports. Web. 20 Apr. 2016.
"Pharmaceutical Industry Gets High on Fat Profits - BBC News." Pharmaceutical
Industry Gets High on Fat Profits. BBC News, 6 Nov. 2014. Web. 20 Apr. 2016.
"10 Diseases Where Medical Marijuana Could Have Impact." CNN. Cable New
Network, 16 Apr. 2015. Web. 20 Apr. 2016.
"Costs of Mesothelioma Treatments." Costs of Chemotherapy & Other Mesothelioma
Treatments. Web. 20 Apr. 2016.