Legal weed could mean a $4 billion loss for big pharma. A May 207i study conducted by New Frontier Data estimates if the entire U.S. legalized medical cannabis pharmaceutical sales could fall by more than $4 billion per year.
New Frontier Data founder/CEO stated, “When you start to break down the numbers by specific sectors of the industry, life chronic pain or symptoms associated with chemotherapy, which are very lucrative markets for pharmaceutical companies, you will certainly see cannabis have a major impact.”
This study was based on a 2016 Health Affairs study which found an 11% reduction in drug prescriptions in states where medical cannabis is legal. New Frontier Data applied that decrease to the total amount of money spent in the U.S. on treatment for the nine conditions, which medical weed is most commonly approved for, and found cannabis can replace $4.4 to $4.9 billion for year of current spending on existing treatments.
According to the report, the U.S. makes up 35% of the global pharma market, which is the largest market in the world and a major contributor to the U.S. economy. So, it’s no wonder so many pharmaceutical companies donate money to anti-legalization campaigns and organizations.