U.S-based cannabis operator Curaleaf Holdings Inc (OTCMKTS:CURLF) released a statement on
Tuesday, through which it responded to a letter it received from the Food and
Drug Administration (FDA).
The FDA sent the warning letter to Curaleaf for selling
cannabis products to customers before they are approved. The letter also warned
the company against using unproven claims about the ability of those products
to treat diseases such as Parkinson’s disease and cancer among others. The
company responded in a statement claiming that it is committed to achieving the
highest compliance and quality standards.
Curaleaf to respond
to the letter within the next few days
Curaleaf also announced that it will release an official
response to the FDA letter within the next 15 working days. The cannabis firm
also revealed that regulatory compliance is a top priority. It also revealed
that the FDA letter does not raise any concerns about the consistency and
quality of the company’s products.
“Selling unapproved products with unsubstantiated therapeutic claims — such as claims that CBD products can treat serious diseases and conditions — can put patients and consumers at risk,” stated FDA Commissioner, Dr. Ned Sharpless.
The FDA’s warning letter pointed out some of Curaleaf’s products
that are displayed on the firm’s social media pages. The FDA considers the
products as drugs because they are indicated for use to treat, diagnose or
Curaleaf revealed in its statement that its legal counsel is
already conducting a review of the letter. The company, however, noted that it
is committed to working with the FDA to ensure regulatory compliance for all
its products that are available for sale.
The letter has
already influenced investor action
The news about the FD’s letter to Curaleaf fueled a stock
sell-off by some of the company’s investors and subsequently a slight dip in
the stock value. However, some analysts, especially those from Beacon
Securities believe that the situation created an opportunity for buyers to get in
at a good price range and so they recommend a strong buy. Curaleaf is still a
strong player in the cannabis industry which has been gaining a lot of traction
thanks to cannabis legalization.
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Published at Tue, 30 Jul 2019 12:01:14 +0000