By Adinah Brown

So, I just received one of those unusual emails with an attachment for the next big investment. Unsurprisingly, the subject line was “controversial silicon valley venture capitalist declares, if you do not invest in xxxx right now, you will regret it for the rest of your life.” Stronger words have not been spoken since the last chain letter I decided not to forward on.

Still, not looking to add another regret to my already supposedly regret filled life, I decided to click on the link (at the risk of infecting my computer and then really having something to regret). The video link started immediately and, with both the the subtlety of sledgehammer on iphone and a “nothing but the facts attitude”, I was de-regretified. I was taught a lesson.

And that lesson was about marijuana.

You see, the suspiciously planted xxxx that I put above was actually the word marijuana! And not investing in marijuana would be the biggest regret of my life. Which is comforting to know, since before I was worried about STD’s, cancer or the retreat of hair from the front part of my head.

It may not be clear that I am mocking the video and the strongarm sales techniques. In the spirit of disclosure I must admit to not watching the entire thing, so I don’t actually know what the sales pitch was at the end. But, it does raise an interesting question. Why do investors seem to be so interested in the legalisation of marijuana?

The financial reality of marijuana is clear. Anything that undergoes “de-prohibition” (it’s a word I just made up that means it is no longer prohibited, like the long wait until you are legally old enough to drink or drive) creates the possibility of a new industry, and many new avenues and opportunities abound in a vacuum. Generally, the prior prohibition supposes that the product is both dangerous in some ways to consumers and desirable to them despite this. Prohibited substances generally consists of dangerous, addictive, mind altering chemicals, and wouldn’t you know it, some of those classifications are applicable to marijuana! The fact that prior to legalization there was a significant market which existed despite the possibility of imprisonment, is an indication to an investor how strong the interest is from existing clientele!

Although it is often overlooked, marijuana use as a medicine is likely the reason for legalization in the first place. And yet, in this clamour for legalization, not a lot of discussion about the pharmacoeconomic impact has been discussed. Briefly, the main purpose of pharamcoeconomics (yes it is a thing) is to determine the cost benefit of new drugs. At the simple level, these models are used by insurance companies or drug subsidy providers to determine the co-payments for any new drug. One of the main aspects under investigation is the relative benefit of the new therapy in relation to existing therapies.

The reality is that using normal marijuana for medical reasons does not present a strong case on the basis of its comparison to other existing treatments for the conditions it is effective in treating.

What does have a strong case is CBD, the non psychoactive cannabinoid. Basically, it’s the bit that doesn’t make you high. But it does a lot of other good things and legitimate clinical trials have shown its benefits and relative benefits against existing therapies.

When looked at through this prism, it is easy to see the true driver of interest in legalising marijuana.

For smoking, enjoying or alternatively for making a profit off that desire.

Not that there is anything wrong with that.

About the Author:

Adinah Brown is a professional writer who has worked in a wide range of industry settings, including corporate industry, government and non-government organizations. Within many of these positions, Adinah has provided skilled marketing and advertising services and is currently the Content Manager at Leverate.