With the midterm elections fast approaching, the midpoint of President Biden’s first term in the Oval Office will undoubtedly be known as the marijuana elections. Despite 19 states fully legalizing cannabis for recreational usage and an additional 20 allowing it for medical purposes, the country remains at a confusing crossroads. Outsiders are likely puzzled by 39 of 50 states legalizing cannabis in some capacity, yet the drug remains illegal on a Federal level. These upcoming midterm elections mark the ten year anniversary of cannabis trailblazing states like Washignton and Colorado officially legalizing cannabis. 

So why is this topic so controversial still? It has been a thorn in the side of the Democrats as Republicans have refused to pass any sort of Federal legalization bill through the Senate. Whether it was the MORE Act or the CAOA Act, nothing has been able to garner enough bi-partisan support to pass any votes. 

Even though Americans like to think of themselves as forward-thinking and free, the United States is clearly falling behind other major markets when it comes to cannabis legalization. Other countries like Mexico and Canada have fully legalized cannabis usage for adult recreational use, while major European nations like France and Germany have for medical usage. On top of that, CBD has been widely legalized around the world and though it mostly is in the US, it lacks any formal concrete regulations. 

Cannabis legalization is surely to be a hotly contested topic on this year’s ballot. Many will still remember that it was widely believed President Biden and the Blue Wave would legalize cannabis. The cause was sidelined with the onset of the pandemic, but now it should be back in the spotlight this fall. 

Watch for Alternative Cannabis Uses

Perhaps we shouldn't just be focussing on direct cannabis usage but the other therapeutic uses for the drug. It would be easy enough to list off all of the major growers in the industry but those who understand investing in cannabis already know there is much more to it than just smoking. Alternative uses for cannabis are highlighted by companies like Innocan Pharma Corp (CSE:INNO), a small Israel-based firm that is making tremendous progress in use cases for veterinary therapies and treatments. 

We’ve all heard of giving CBD drops or treats to your dogs or cats to help deal with symptoms like anxiety and chronic pain. Innocan is taking this one step further by developing an innovative and cutting edge use case for CBD when it comes to animal pain. In a recent clinical study, Innocan reported success in treating dogs for epilepsy with its LPT CBD Liposomal Delivery Platform. Think of it as a super shot of CBD that provides long-lasting treatment and therapeutic effects to the animals. After just one dose of Innocan’s LPT CBD treatment, the patient’s seizures were halted for 9.5 weeks. This is a tremendous improvement over the pre-treatment rate of a few times every month, including hospital stays which can add up in cost to the owners. In fact, the CBD treatment was so potent that dogs in the clinical trial study reported 100% bioavailability from the treatment which is compared to just 6.5% to 20% bioavailability in humans. 

The results from Innocan are extremely promising. Not only is this an advancement in technology for pets, but it is also a step forward in the right direction for the more than 50 million human patients that live with epilepsy worldwide. CBD usage as a medical treatment is surprisingly popular and provides a more natural solution than prescription drugs. Innocan’s ground-breaking clinical study results are just the tip of the iceberg for this company, and it could be challenging as a leader in the global epilepsy treatment market. 

Innocan is Distancing Itself from the Competition

It might not be appreciated how significant a 100% bioavailability is for this treatment. First, once it is confirmed through more clinical trials, a figure in the neighborhood of 100% puts Innocan way ahead of its competition. A bioavailability of 100% is truly unprecedented in this industry, and might provide researchers with a new way of administering treatments to humans who also suffer from this debilitating disease. 

As with the rest of the cannabis and CBD sectors, Innocan has seen its stock price take a steep dive this year. So far in 2022, shares of INNO are down by more than 56%, and more than 70% over the past 52-weeks. This mirrors the performance of what many use as a gauge for the industry in the Global X Cannabis ETF (NASDAQ:POTX). The fund is also down by about 58% so far in 2022, and 71% for the past 52-weeks. As popular as cannabis might be amongst voters, it certainly hasn't been with investors. 

Is Innocan Stock a Good Investment?

When it is evident that a stock’s performance is likely due to a broader sector downturn, we need to look at fundamentals and how the company is progressing. Innocan is clearly establishing itself as a leader in the industry even during the ongoing bear market which has sharply affected its stock price. Innocan has several things working in its favor: a cheaper stock price due to the ongoing sell off, the positive clinical trial results, and a management team that has experience in executing CBD based drug development. 

With the midterm elections right around the corner, expect the chatter around cannabis legalization and CBD regulation to increase. This will bring more eyes and ears to the industry from investors, and companies like Innocan are positioned to take advantage of any sort of bullish squeeze. If there is one company that has continued to build and make progress that has yet to be reflected in its stock price, I think it is Innocan.