The Creso Pharma Ltd (ASX: CPH) share price has been rocketing higher over the last few days of trading, driven by positive updates. These included an announcement yesterday that the United Nations (UN) will reclassify cannabis as a less dangerous drug.
The Creso share price has risen by 200% since 27 November, including a 65% price rise yesterday, and today’s increase of 8.25%. At the time of writing, Creso shares are trading at 10.5 cents.
UN landmark announcement Creso announced yesterday that it is set to benefit from a landmark UN decision to reclassify cannabis as a less dangerous drug.
The vote was cast by the UN on 2 December 2020, after a series of recommendations were put forward by the World Health Organisation (WHO).
The decision will see the UN Commission on Narcotic Drugs withdraw cannabis from Schedule IV classification. Schedule IV substances are considered the most dangerous and addictive drugs.
The UN says that cannabis will now be reclassified as a Schedule I substance, which is the least restrictive drug classification.
Creso said its business is extremely well positioned to benefit from this ruling, which will unlock multiple near-term opportunities.
What else is driving the Creso share price higher? Two days ago, Creso announced it has received three new purchase orders from Europe for its anibidiol line of animal health products.
According to Creso, the new orders take total purchase orders generated through the company’s animal health segment to around $975,000 for 2020, reflecting the strong demand for its products.
Creso said these purchase orders are a major achievement for the company during the challenging regulatory situation and COVID-19 pandemic. The company expects to receive more orders over the next few months from the growing European animal health market.
In another positive development last month, Creso reported it was waiting for a Therapeutic Goods Administration (TGA) decision in late December that will be a game-changer for cannabidiol (CBD) products.
The TGA is making a decision that could see CBD products sold over the counter at pharmacies without the need for a prescription.
Creso said this decision could potentially open up a significant, new opportunity for the company, with the Australian market estimated to be worth around $200 million every year.
How has the Creso share price performed in 2020? With its recent stellar gains, the Creso share price has almost regained its losses in 2020 and is now down 8.5% for the year. After a fantastic few days of trading for Creso, the company currently commands a market capitalisation of around $65 million.
The post Creso Pharma (ASX:CPH) share price up 8% today, 200% in a week appeared first on The Motley Fool Australia.
Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020
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