Bridge Point Capital’s Take on the Medical CBD Industry

Updated: May 20, 2021

Although medical cannabis is legal in 33 states, the FDA still regulates it as a schedule 1 controlled substance that has no medical benefits and a high chance of abuse. Although this may seem concerning, the US Congress recently voted against government restriction of prescribing medical marijuana, thus maintaining its market potential. Given the complex legal landscape of medical cannabis, BPC provides strategic consulting services in this industry, including advice on how to increase scale.

It’s important to understand what exactly “cannabis” and “marijuana” are. “Cannabis” is defined as a plant from the Cannabaceae family. Of the more than 80 active chemical compounds, that belong to the family, the two most common ones are delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). Some of the Cannabis sativa plant have been regulated (under the drug class “marijuana”) by the Controlled Substances Act in 1970 because of its high risk of abuse.

Although the FDA has not approved cannabis as a whole, it has approved one cannabis-derived product and three cannabis-related products, which are only available through prescriptions from a licensed provider. The cannabis-derived product is Epidiolex, which includes a purified version of CBD for seizures in Lennox-Gastaut syndrome and Dravet syndrome. The FDA’s approval of this product implies it safety of usage. In addition to Epidiolex, the FDA has approved three cannabis-related products: Marinol, for treating anorexia associated with AIDS patients; Syndros, for the same reason as Marinol, and Cesamet, for treating nausea/vomiting in chemotherapy.

Bridge Point Capital is helping one of our client companies with financial, operational, and marketing advice. For example, we suggested that instead of tackling the Rx formulary, they should focus on hospital coverage by substituting medical cannabis for opioids when patients leave the hospital after a surgical procedure. Moreover, we 1) helped them attain third-party reimbursement for medical cannabis 2) built an algorithm that shows how cannabis cuts cost and improves life quality 3) created interactions with a large government payer for expanding its global reach and 4) constructed pricing analyses for the client's meeting with government agency.

Whether clients come to us for strategic advice in the cannabis space, or whether we reach out to forge connections in the industry, Bridge Point Capital continues to build its network in the medical CBD industry. Our work represents our value proposition, both to a firm and the people it helps. Looking forward, BPC continues to search for opportunities to advance the potential of medical cannabis to patients and people.

About Us:

Bridge Point Capital is a private equity firm based in New York, with a focus on U.S.-Asia cross-border investments. We specialize in investing in disruptive mid- to late-stage healthcare companies that can benefit from penetrating the vast, yet unexplored Asian healthcare market. We aim to leverage our expertise in both healthcare and capital markets, to establish a lucrative investment platform for our investors.