How Cannabis Threatens Big Pharma Profits
Legal cannabis is cutting into Big Pharma’s bottom line, and we’ve got the data to prove it.
A study published in PLOS One analyzed 25 years of stock market data and found that pharmaceutical companies saw a 1.5-2% drop in stock value within ten days of cannabis legalization in any state.
That might not sound like much, but in a trillion-dollar industry, that’s a $10 billion loss overnight. And the long-term damage is worse: the study estimated Big Pharma loses about $3 billion per year as legal cannabis expands.
Why? Because cannabis is an alternative to dozens of common prescription drugs, including:
Painkillers – Opioid sales plummet in states with legal cannabis.
Anxiety Meds – More people are swapping benzodiazepines (like Xanax) for weed.
Antidepressants – Cannabis is emerging as an alternative to SSRIs.
Sleep Aids – Fewer people need Ambien when THC or CBD can help them sleep.
Seizure Medications – CBD-based treatments are replacing some pharmaceuticals.
And let’s not forget that cannabis doesn’t come with the deadly side effects of opioids, the addiction risks of benzos, or the liver damage of NSAIDs. That’s another reason people are making the switch.
Big Pharma Is Spending Millions to Keep Weed Illegal
If cannabis were just a harmless plant, Big Pharma wouldn’t care. But legal weed is eating into their profits, so they’ve been lobbying hard to keep prohibition alive.
A study from JAMA Internal Medicine found that opioid prescriptions dropped by 11% in states with medical cannabis laws (JAMA Internal Medicine). That means fewer sales for Purdue Pharma, Johnson & Johnson, and other drug manufacturers.
So, what did these companies do? They started throwing money at politicians to fight legalization.
Examples of Big Pharma Lobbying Against Cannabis
Insys Therapeutics – Makers of fentanyl donated $500,000 to fight cannabis legalization in Arizona while developing their own synthetic THC drug (The Guardian).
Purdue Pharma & Johnson & Johnson – Both companies have funneled millions into anti-cannabis lobbying efforts while profiting off addictive opioids.
The Pharmaceutical Research and Manufacturers of America (PhRMA) – One of the largest lobbying groups, has spent over $25 million annually influencing drug policy and fighting cannabis-friendly legislation (Opensecrets).
In short, Big Pharma knows cannabis is a threat, and they’re paying to stop it.