On Tuesday, Tilray climbed 29% following the news it had been approved as the first cannabis company to export legal weed into the United States for a clinical trial to treat essential tremor, or ET, at the University of California at San Diego. The shares, which closed at more than $214 for the day, then continued to lose ground in after-hours trading.
The Nanaimo-based company announced Tuesday it was approved to export a cannabis product for use in clinical trials in the U.S. The one-year trial is scheduled to begin in 2019.More news: 5 ways to prepare for the upcoming flu season
The surge in stock price comes after the US -based Drug Enforcement Agency approved it to ship marijuana to the USA for medical research. The move also puts Tilray in a better competitive position against peer Canopy Growth Corp., which has 39 US patents and 15 clinical trials, said Azer, who rates both stocks outperform.
Outside of pharmaceuticals, the cannabis sector's strength has also come from deals with beverage companies like Constellation Brands, the global behemoth behind Corona that owns a 8.5% stake in Canopy Growth.More news: The Amazon DVR is real, and starts at $230
However, by late afternoon, surged to US$300, up 94 per cent from its previous close of US$154.98.
Just a month ago, Tilray shares were trading at around US$35.More news: PlayStation Classic micro console released on December 3
The licensed producer's market capitalization was roughly US$19.9 billion at close. The gain added almost $3 billion to Tilray's valuation, pushing it above $14 billion to top peer Canopy Growth Corp. and making it the largest cannabis company.
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