Tilray stock rose 23 percent Tuesday on reports that their testing plan had been approved by the DEA
Tilray TLRY (NASDAQ) led the rise in cannabis stocks on Tuesday. The company benefited from news that their plan to import marijuana for testing was approved by the U.S. Drug Enforcement Administration. Tilray will use the imported cannabis in studies for the treatment of a neurological disorder.
Tilray has already been forced to plan for other cannabis studies in other countries due to strict regulations in the U.S. These tests are underway in Canada, Spain, and Austrailia. The testing for which Tilray was seeking approval is to treat a movement disorder known as essential tremor.
The disorder affects millions of Americans. DEA approval was the final step needed to move forward with clinical trials in the U.S. and comes at a time whine Tilray stock is up 47.40 percent. After surging 23 percent higher on Tuesday, Tilray’s month-long rise has culminated in 383 percent gain.
Tilray is doing slightly better than competitor Aurora Cannabis Inc. Aurora started the week as the subject of speculation on a report that the company was in talks with Coca-Cola to create a cannabis-infused line of beverages.
Aurora responded to the reports with an ambiguous statement that avoided admitting or denying they had met with Coca-Cola. However, Aurora clarified that they are not currently in any form of agreement or arrangement with any beverage company, thus squashing the rumors where they stood.
The report likely gained credibility due to other recent deals between marijuana brands and beverage industry leaders. Constellation Brands partnered with Canopy Growth, while Molson Coors began a working with Hydropothecary Corp.