Asia plants seeds for the medical cannabis market

TAIPEI – Several Asian countries are considering decriminalizing cannabis for medical purposes, which could allow the region to become the world's main center for the production of this drug.

A proposal to revise the legal framework in Thailand was submitted last month to Prime Minister Prayuth Chan-ocha, who supported the plan. This allows the promulgation of cannabis legislation for medical purposes by the end of the year.

The Thai government approved a bill in May to allow more research into the effects of cannabis for medical purposes. The government pharmaceutical agency, a state-owned company that manufactures pharmaceuticals, has begun clinical trials to produce drugs for four diseases.

But Southeast Asia is not Canada, which legalized cannabis last month for recreational purposes. The region has some of the most stringent narcotics laws in the world, with some countries providing for the death penalty for drug offenses. Yet a recent case in Malaysia seems to show a change in the attitude of the authorities.

A 29-year-old man who was sentenced to death for selling cannabis oil for medical purposes to cancer patients was removed from death row. The Malaysian government began informal discussions in September on the revision of laws to allow the use of the drug for medical purposes. In October, Liew Vui Keong, Minister of Legal Affairs, said the country would abolish the death penalty completely, including for drug-related offenses.

The minister also said that if drugs such as marijuana and morphine were used to treat cancer patients, the country could review their legal status.

Even in Singapore, there are signs of change. Although the city has strict penalties for drug-related offenses, it announced earlier this year a program to release the therapeutic potential of cannabinoids, the chemical compounds found in the cannabis plant. As part of the country's $ 25-million biotechnology development plan, the initiative is exploring treatments for problems such as metabolic syndrome, infertility, Alzheimer's disease and Parkinson's disease.

Elsewhere in Asia, the Indian and Filipino governments are discussing the desirability of legalizing the cannabis market for medical purposes, while Sri Lanka is preparing to launch its first planting for domestic medical use and for medical purposes. exports to the United States.

While China shows no sign of following the legalization of cannabis, the world's second-largest economy produces more than half of global industrial hemp. This member of the cannabis plant family contains a high content of cannabidiol, or CBD, a compound with well-established anodyne, anti-inflammatory and anti-anxiety properties. The substance can help reduce chronic pain, muscle spasms, epilepsy and side effects of chemotherapy, making it one of the major applications of hemp in the United States.

"The medicalization is already underway in China and the Chinese government is encouraging research on medical cannabis," said Saul Kaye, founder and CEO of Israel Cannabis, or iCAN, a company that develops formulations and devices. medical cannabis. "China has a rich botanical medical history and cannabis was historically used as a Chinese herb."

Kaye added that Israeli, Canadian and American companies are already present in China. The country is on the verge of becoming the world's leading supplier of CBD and could also quickly gain expertise in medical cannabis applications.

The global market for marijuana for legal medical purposes is expected to reach $ 55.8 billion by the end of 2025, according to San Francisco's Grand View Research firm.

Nonetheless, Ja Lee, an analyst at CB Insights, a New York-based data analytics firm, said medical marijuana research was still in its infancy in Asia.

"While some Asian countries are considering studying the effects of marijuana, there are still strict laws regarding the use of drugs," Lee said. "When North American companies look at Asian markets, they will be watching these regulations closely, which will have a direct impact on drug scalability and research and development portfolios."

China holds more than half of the 600 international cannabis patents that have been filed, including methods of administering the drug, from oil to patch, according to data from the Organization. World Intellectual Property Organization.

Aside from health care, the commercial potential of marijuana is exploited by Asian countries such as Thailand, which has long cultivated native strains.

According to Jim Plamondon, vice president of Thai Cannabis Corp., some Thai producers, one of the world's largest cannabis exporters in the 1980s, are revitalizing its famous local varieties, said to be the first legal cannabis company from the country.

"Some of them are rich in THC [tetrahydrocannabinols]Plamondon said, "The stronger the strain, the higher the cannabinoid yield per hectare, all things being equal."

He also said Thailand was seeking deals with multinational companies such as Coca-Cola and PepsiCo, who had previously considered the inclusion of cannabinoids such as CBD in their products.

According to iCAN's Kaye, Asian countries may be inspired by experiences from Israel and the West to start benefiting from drug development in just two years.

But the criminal influence raises concerns if the regulation changes significantly.

A variety of medical cannabis products on display in a marijuana grow center for medical purposes in the United States.

© AP

"Corruption is the main risk – the concern that drug cartels are now able to maintain their influence on a regulated market," said John Downs, director of business development at Arcview Group, a investment company and market research in San Francisco based Cannabis. .

"However, the data shows that in the legalizing markets, crimes and trafficking are decreasing, because prices are no longer a strong incentive for gangs to grow and sell cannabis," he said.

Downs added that over time, cannabis would become a commodity and that Asian countries, particularly China, could become low-cost producers with high production capacity and capable of To export abroad in just a few years.

But the situation in South Korea highlights the complications surrounding the cannabis industry in the region.

Although the country announced in July that it would encourage efforts to allow imports of marijuana-derived medicines approved for use abroad, it does not plan to fully legalize the market. cannabis in the country in the short term.

After Canada legalized recreational use on October 17, South Korea followed Japan warning Canadians not to smoke pot in this North American country. stating that it was still an offense under South Korean law.

"The legalization for adult use is a different ball game and is not currently on the table in Asia or China," said Kaye, of iCAN.