Quebec Superior Court Judge Manon Lavoie overturned the province’s ban on homegrown cannabis on Tuesday, meaning that Quebecers are now free to cultivate cannabis at home without facing legal repercussions.

In June 2018, the provincial government passed Quebec’s cannabis law, which included provisions banning the cultivation of cannabis at home.

However, Lavoie ruled that these provisions are unconstitutional as they infringe upon the jurisdiction of the federal government, which has sole responsibility for legislating on criminal matters.

As a result, homegrown cannabis in Quebec is now regulated by Canadian law, which allows citizens to grow up to four cannabis plants.

“As a Quebec citizen, I subscribe to the idea that it’s better to control cannabis by allowing it to be grown at home,” said Julien Fortier, the lawyer who led the challenge.

Fortier took on the case after being approached by Janick Murray Hall, who wanted to bring the action to court on behalf of all those in Quebec who have been prosecuted for being in possession of cannabis plants.

According to the lawyer, Lavoie’s ruling fits with why the government opted to legalize cannabis in the first place.

“The entire idea behind the legalization of cannabis was that the government wanted to remove the production of this plant from organized crime,” Fortier said. “If you allow people to cultivate this plant themselves, that purpose would be achieved.”

Still, Fortier is urging Quebec homegrowers to avoid celebrating prematurely, as the provincial government has 30 days to file a petition to the Court of Appeal. In fact, he warns there is a “very strong chance” the government will seek an appeal.

“I don’t think the Quebec government will do nothing and let it slide,” he said. “Regardless, we’re looking forward to the fight.”

Several medical marijuana products are being taken off the shelves in Michigan after the state determined that they contain hazardous levels of pesticides. 

The safety compliance facility overseeing the safety of the products, Iron Laboratories, had its license suspended by the Michigan Marijuana Regulatory Agency earlier this month after it was revealed that it had conducted faulty testing for pesticide and mold in its cannabis products—the first time the state issued a suspension to a marijuana business.

At the time of the suspension, the agency said that despite Iron Laboratories’ “inaccurate results and/or unreliable testing and reporting practices,” it had “not been made aware of any adverse product reactions in conjunction with product tested by Iron Laboratories,” and was thus not issuing any recalls. 

But that changed on Friday, when the Marijuana Regulatory Agency announced that it is recalling four medical marijuana products as a result of the investigation into Iron Laboratories. The agency provided the production batch numbers for each product, as well as the pharmacies and dispensaries across the state where they have been sold. The recalled products have been sold in a little more than a dozen cities throughout Michigan. 

In its safety bulletin on Friday, the agency said that it “has not been made aware of any adverse product reactions in conjunction with these products,” but that symptoms or medical issues resulting from the recalled products may include “coughing, wheezing, decreased pulmonary function, nausea, vomiting, abnormal heart rhythm, and damage to blood vessels.” The agency has advised patients or caregivers who are in possession of these affected products to destroy them or return them to facility from which they were purchased. 

After being dealt the suspension earlier this month, Iron Laboratories said it was “very surprised” by the disciplinary action. “”When requested by [Marijuana Regulatory Agency] to address inquiries, Iron Laboratories acts swiftly to comply with documented explanations and corrective actions when needed,” the company’s president, Rob Teitel, said in a statement. 

“We regularly offer advice regarding testing requirements when asked by MRA officials.”

Teitel added: “We will continue to cooperate, knowing that upon conclusion of the investigation, the State of Michigan and MRA will determine we are well qualified to carry out the important mandate of safe testing.”

For Michigan, it represents the largest medical marijuana recall to date. Voters in the state overwhelmingly approved a measure legalizing medical cannabis back in 2008. Last year, those voters went a step further, making Michigan the 10th state to legalize recreational marijuana.

Hemp cultivation in Europe is well established with a tradition dating back hundreds of years. Currently, it is estimated that Europe cultivates up to 25% of the world's hemp. France alone accounted for 40% of the European production, with at least 20 other countries contributing to the European Union's total.

European hemp cultivation has been on a major upswing for the last several years, as producers and consumers become more excited about new usage opportunities.

In the last several years, along with the tremendous increase in overall cultivation, the European market has experienced a great surge in its use of seeds and flowers, along with associated applications of those hemp components. According to the European Industrial Hemp Association (EIHA), the EU produced 11,500 metric tons of hemp seeds in 2015 (the last year for which data is available), yet it imported another 10,000 metric tons, primarily from China.

While most hemp seeds a decade ago were used for animal feed, especially for birds and fish, EIHA now estimates that 60% of the crop is used for human food, with only 40% of it for animal feed. That shift is expected to continue as Europeans become more aware of the benefits of hemp and its omega fatty acid profile. The EU has also seen a major increase in the last four years in the harvesting of hemp flowers and leaves for medical and food applications (primarily around CBD).

CBD sales are flourishing in some European countries despite confusion around European Food Safety Authority classification of CBD as a "novel food". Some countries such as the U.K. and Italy have a hands-off approach and are not enforcing these guidelines, whilst other countries (e.g., France, Austria, and Spain), are clamping down on CBD sales.

CBD products are enjoying wide distribution in Europe – from tobacco shops and vape stores, to traditional supplement stores like U.K.-based Holland and Barrett. Such products are also in convenience stores, supermarkets, and online retailers, including Amazon.

Unfortunately, country-by-country regulations can also hamper uniformity about which parts of the hemp plant may be used. In Germany and Romania, flowers and leaves can be harvested, but in the U.K., France, and the Netherlands, only the fibers and seeds can be used.

Europe's hemp market, like most global markets, is working through some growing pains, but while doing so it is also quickly building a strong, diverse hemp industry for the future.

In late August, Johnson & Johnson (NYSE:JNJ) was hit with a hefty $572 million fine for its role in the opioid crisis in Oklahoma, which was still not as bad as it could have been. In what could prove to be a monumental case in the U.S., it could just be the beginning of a much larger fallout. As many as 130 people die daily as a result of overdosing on opioids.

Johnson & Johnson and other pharmaceuticals have reason to be worried, as Oklahoma's opioid problem is not nearly as severe as it is in other states. According to 2017 data from the Centers for Disease Control and Prevention, the state had a death rate relating to drug overdoses of 20.1 per 100,000 people, with 775 total deaths occurring that year. In contrast, West Virginia had the highest rate of death at 57.8 per 100,000 people while Pennsylvania, Florida, and Ohio each had more than 5,000 people lose their lives as a result of overdosing. While the fine in Oklahoma may not be that big of a burden for Johnson & Johnson, the amount could be a drop in the bucket compared to what a potential payout may be in other states should they be successful in pursuing similar types of litigation. The company said it plans to appeal the ruling. 

The cannabis impact

The importance of the issue is evident from a cost standpoint, especially if the ruling against Johnson & Johnson holds up. Companies are likely to start taking opioids more seriously and look into alternative treatment options. One industry where healthcare companies may start to focus on is cannabis. Colorado, New York, and Illinois already allow doctors to recommend cannabis in place of opioids. 

The challenge when it comes to cannabis is that while there's a lot of anecdotal evidence claiming marijuana use helps users deal with pain, there just isn't hard data to support that. To make matters worse, it's also hard to get research done on cannabis to be able to even prove or disprove its effectiveness since it remains a Schedule I drug, illegal on a federal level. These limitations make it difficult to prove whether cannabis can help the situation or not. 

In addition, there has been research to suggest that cannabis is not a blanket solution to the opioid crisis. However, the research is by no means comprehensive and there's a clear need for more research before any definitive links can be drawn. Even one of the more critical studies  acknowledged that "a great majority of adults who used cannabis did not go on to initiate or increase their nonmedical opioid use." Meanwhile, veterans are urging the government to help them access medical marijuana, which has been more effective for some in treating post-traumatic stress disorder than opioids. 

Unfortunately, there's no one right answer to the question of whether cannabis can help the opioid crisis. What is evident, though, is that more research is needed to help understand in which circumstances it may be helpful and in which it may not be. To say conclusively that it does or doesn't help would be premature given the conflicting data.

We're still early in the process

To date, only GW Pharmaceuticals (NASDAQ:GWPH) has successfully launched a cannabis-based drug in the U.S., called Epidiolex. And it could be a long time before we see any others get approved as well given the legal hurdles involved. However, the Johnson & Johnson ruling could be the catalyst that at least gets pharmaceutical companies looking into potential alternatives, ones that include cannabis. 

Why this matters for investors

From an investment standpoint, there's obviously a lot of potential growth that could be at hand for a company with a significant position in the medical marijuana segment like Aurora Cannabis. If cannabis is shown to be an effective treatment option in place of opioids, we could see much more demand for Aurora's products and for the industry as a whole. It could also lead to a big pharmaceutical company finally dipping its toes into the medical marijuana market. It's very early on, but last week's ruling could help lead to some medical professionals taking another look at cannabis, and that could be huge for the industry.