Tilray received approval to import medical cannabis into the US for a study in California, the company announced Tuesday.
The stock surged 11% following the news, hitting a fresh high of $133 in early trading.
It's now up 682% since its July initial public offering.
Tilray shares were up more than 11% in early trading Tuesday after the British Columbia-based cannabis producer received approval from US officials to import medical marijuana for a clinical trial at the University of California San Diego.
The drugs, imported in capsule form, are designed to treat essential tremor (ET), a neurological disorder that causes involuntary and uncontrollable shaking that can make it difficult for patients to perform every day tasks like eating, drinking, or writing. It’s expected to begin in early 2019.
"Tilray is proud to support this crucial research," Catherine Jacobson, Tilray’s director of clinical research, said in a press release.
"If this study can identify cannabinoids as a potential treatment for patients suffering from essential tremor, we can conduct further research and potentially provide alternative effective methods of relief for the high numbers of patients with ET."
Currently, ET is treated with drugs originally developed to treat high blood pressure, seizures, and even Botox. Tilray is also involved in four other trials to treat post-traumatic stress disorder (PTSD), a form of epilepsy, brain cancer, and side-effects of chemotherapy.
Tilray’s stock price has soared more than 680% — with Tuesday's gains — since its initial public offering in July. And while Wall Street analysts remain optimistic for the company’s outlook, the rally could be unsustainable. Analysts give the company an average price target of $49 — less than half of Monday’s $120 closing price.
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"Tilray has flowered into a global leader and GMP-certified cannabis researcher, cultivator, processor and distributor," Mike Grondahl, an analyst at NorthLand Securities in Minneapolis, said in a note to clients last month.
"We believe Tilray has positioned itself well to capture Canada’s upcoming adult-use market share by leveraging its high-grade, high-potency pharmaceutical reputation."
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