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By Ciara Linnane, Corporate News Editor, MarketWatch
Cannabis stocks were higher across the board on Tuesday, led by Tilray Inc., which rallied sharply on news that the U.S. Drug Enforcement Administration has approved its plan to import a marijuana product and test its efficacy in treating a neurological disorder that affects millions of Americans.
The DEA’s signoff was the final regulatory hurdle Tilray TLRY, +44.97% needed to cross for a clinical trial of cannabis in treating essential tremor, a movement disorder. Tilray is testing for marijuana’s potential efficacy for different diseases, but its other four studies are taking place in Canada, Spain and Australia, in part because of U.S. federal prohibition of the drug.
The stock soared 23% Tuesday, bringing its one-month gain to 383%.
Aurora Cannabis Inc. ACBFF, +4.82% ACB, +4.54% meanwhile, was halted for news in the first few hours of trade, before it released a statement. Aurora was the subject of speculation Monday after a report that drinks giant Coca-Cola Co. has held talks with the company on a possible investment. Coca-Cola declined to comment, but acknowledged its interest in the opportunities posed by CBD-infused beverages, or those that contain cannabinoids, key ingredients in marijuana.
Aurora said its policy is not to comment on speculative media reports, but added that it “engages in exploratory discussions with industry participants from time to time. At this time the Company confirms there is no agreement, understanding or arrangement with respect to any partnership with a beverage company.”
The stock was last up 5% and has gained 64% in the last month.