Why Curaleaf and Green Thumb Stocks Flopped Today
In a development that was all too common throughout 2022, numerous marijuana stocks suffered share price declines on Wednesday. Two U.S. multi-state operators (MSOs) with sizable product portfolios were affected by this, namely Curaleaf (OTC: CURLF) and Green Thumb Industries (OTC: GTBIF), which slipped a respective 4.9% and 7.2%. The sell-off was due in no small part to recent news from the Food and Drug Administration (FDA).
The FDA is currently investigating whether legal marijuana is safe as an ingredient in dietary supplements and food. In the coming months, this research will inform the agency's recommendations on how to regulate such products in the U.S.
That might not be good news for producers and sellers of cannabis-infused gummies and soft drinks, such as Curaleaf and Green Thumb, however. FDA principal deputy commissioner Janet Woodcock was quoted in The Wall Street Journal as saying, "Given what we know about the safety of CBD so far, it raises concerns for FDA about whether these existing regulatory pathways for food and dietary supplements are appropriate for this substance."
Source Fool.com
