Canadian medical marijuana company Canopy Growth Corporation (CGC) shares jumped over 5% on Wednesday after receiving approval from the Veterinary Drug Directorate of Health Canada to research the effectiveness of cannabidiol, or CBD oil, to treat anxiety in animals.
Marc Wayne, managing director at Canopy Health Innovations commented that the use of CBD oil to treat pets is a "logical new forefront."
"These approvals mark a significant milestone on the journey of making cannabis-based drugs accepted and recommended by veterinarians," he said.
This step will allow Canopy Animal Health, a division of Canopy Health Innovations, to research cannabis-based healthcare products for pets.
Despite the good news, the stock has been stuck in a broad trading range, which could be due to a large volume of aggressive sellers, as noted by Real Money contributor Bruce Kamich in his article this morning.
However, Canopy is not the only player trying to enter this new market of pot products for pets.
Bob Vetere, president of the American Pet Products Association (APPA), told Real Money he has seen the number of suppliers at recent trade shows.
"The last couple of years we've been noticing more and more CBD/Hemp manufacturers exhibit at our show," he said. "Based on the number of new companies in the CBD/hemp market and new products being launched, we can confidently say this is a growing market and something to take note of."
Vetere cited Holistic Hound, Dope Dog, and True Leaf as a few of the prominent players occupying the space alongside Canopy Growth.
However, he added that as CBD oil for pets is new, it is open to further changes.
"Initially manufactures in the cannabinoid category came out with hemp treats and chews. While those are still new and popular, now we're seeing more and more companies entering the market by simply offering CBD oils and tinctures and not just for dogs, but for cats as well," he said.
Capsules, balms, and other topicals for a range of pet ailments were also mentioned as new products coming through in the "emerging category" of cannabis solutions for pets.
As Ontario lifts restrictions on cannabis use for private retail, Canada's regulatory confidence in cannabis for humans and animals alike shows no signs of slowing down.
Steve Gelsi contributed reporting to this article.