CVS share price down 2% after announcing CBD sales
CVS stock is down after announcing upcoming sales of CBD products in hundreds of its stores.
CVS share price is down 2% after announcing that it will sell Curaleaf cannabidiol (CBD) products. The hemp-based products will be sold in eight US states in 800 stores.
Why is CVS selling CBD products?
CVS is selling CBD products because of the popularity of the product that is derived from the same plant as marijuana. Marijuana and CBD-based products from companies like Curaleaf and Aurora Cannabis are a multi-million dollar business. CVS Health spokesperson, Mike DeAngelis, noted that the chain will sell Curaleaf CBD because of customer demand. CVS will sell Curaleaf lotions, creams, and oils.
‘We are carrying hemp-derived CBD products in select states to help meet consumer demand for alternative care options,’ said DeAngelis.
Is it safe for CVS to sell CBD?
While CBD has been touted as a ‘alternative medicine’ treatment for anxiety and pain, little medical research has been conducted for it to be approved by the US Food and Drug Administration(FDA). CVS will not be selling CBD food products because they are not regulated in the United States.
Former FDA Commissioner, Scott Gottleib, said in December 2018 that CBD products was risky to sell in stores.
‘Selling unapproved products with unsubstantiated therapeutic claims is not only a violation of the law, but also can put patients at risk, as these products have not been proven to be safe or effective,’ said Gottleib.
CVS pledges to ensure that the Curaleaf products are safe for customers to use.
‘We are working only with CBD product manufacturers that are complying with applicable laws and that meet CVS’s high standards for quality. Only products passing these independent tests are offered for sale in our stores,’ said CVS in a statement.
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