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Cannabis Business Insights | Friday, September 16, 2022
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Europe’s cannabis industry is observing massive changes because of the integration of biomanufacturing methods, and multiple pharma companies and startups favor this technique and invest significantly in it.
Fremont, CA: Cannabidiol, also familiar as CBD, is the non-psychoactive cannabinoid obtained from the cannabis plant. CBD can be found in goods ranging from edible gummy bears to skin oil for pain or anxiety lessening, cognition, acne treatment, or sleep aid. In addition, one million patients with hard-to-treat epilepsies are now utilizing the FDA-approved prescription drug Epidiolex, which contains CBD. Moreover, scientific articles are rising, researching a wide range of probable treatments for conditions comprising diabetes and arthritis, and finally offering clinical evidence for some of the advantages that have been long questioned.
Investment in cannabis startups is augmented yearly by the amount raised and growth in the number of deals. Hence, the CBD industry is entering its golden era, which might evolve as innovative as aspirin. Yet, these ingredients have not become extensive compared to the drastic growth observed in the sector. This is because it is slow and costly to produce and withdraw the necessary elements from cannabis plants. Also, FDA studies have indicated that it is hard to control its dosage.
With the production of insulin, the application of biomanufacturing to yield high-value key ingredients came into being. This has now extended to all kinds of compounds, from heme of unbelievable foods to perfect day’s milk proteins or Geltor’s collagen. Numerous companies utilize synthetic biology tools to produce cannabinoids such as CBD and CBG (cannabigerol) via precision fermentation. This technique presents high-quality products without pesticides and other chemicals while saving time, money, and resources.
Although the technology and regulations are advantageous, they are not refined. The cause is that the production requires specific biomanufacturing facilities, and these infrastructures are not evenly distributed globally.
Europe’s Potentials to Lead in CBD Biomanufacturing
Europe has been a pioneer in the food, chemical, and pharmaceutical industries. It is currently a global leader in industrial biology and a manufacturing base for global biotech businesses.
With initiatives like the Biobased Industries Consortium (BIC), a partnership between the EU and industry, which contributed over 3.7 billion euros and extra investments by the EU is aiming to develop biomanufacturing. Likewise, the European Court of Justice lately stated that CBD is not a narcotic under European law and is regarded as a novel food in 2019 by the European Commission. Thus, Europe seeks an accurate space to own bio-manufactured CBD for the global supply chain. Consequently, a huge influx of investors is witnessed, ranging from early-stage funds to greater VCs, and acquisitions have also begun. Besides, many large pharma organizations are keen to employ strong balance sheets to jump on the bandwagon once successful investors appear.
Nowadays, the industry is founded on traditional cannabis farming, and it can just be estimated whether the biomanufacturing method would concur with or replace it. Businesses believe this is an application where biomanufacturing can outshine, just like insulin and the new food-grade precision fermentation industry. Biomanufacturing methods will be widely used in light of the expanding concerns about utilizing natural resources such as land, water, and energy.
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