Cannabis legalization decreases the stock market value of major pharmaceutical firms
September 1, 2022
Researchers from California Polytechnic State University and The University of New Mexico find that stock market investors predict cannabis legalization will reduce conventional pharmaceutical sales by billions of dollars.
In their recent study, “U.S. Cannabis Laws Projected to Cost Generic and Brand Pharmaceutical Firms Billions,” published in PLOS One, Ziemowit Bednarek from the Finance department at California Polytechnic State University, Sarah Stith from the University of New Mexico’s Economics department, and a co-author studied how the stock market returns of publicly traded pharmaceutical firms responded to medical and recreational cannabis legalization events. They found that stock market returns were 1.5-2% lower at 10 days following a cannabis legalization event and that the implications of the annual sale from this reduction were in the billions.
Learn more at UNM Newsroom.
