Why Curaleaf Stock Wafted Almost 10% Higher Today

Source Motley_fool

Key Points

  • CBD appears to be useful in treating alcohol use disorder, otherwise known as alcoholism.

  • It reduced withdrawal symptoms, and curbed relapse, in rodents during a clinical trial.

  • 10 stocks we like better than Curaleaf ›

Marijuana stock Curaleaf (OTC: CURLF) got quite a buzz Thursday from news about one of the substances for which it's best known. Interestingly enough, this was not the THC that gets people high from consuming marijuana, but cannabidiol (CBD), the nonpsychoactive compound that's also packed into the plant.

On reports of a previously undetected potential health benefit of CBD, investors piled into Curaleaf stock and pushed its value nearly 10% higher on the day.

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Arrow up with dice.

Image source: Getty Images.

What the drunk rodents were telling us

Industry newsletter reported that the results of a clinical study indicate that CBD appeared to improve withdrawal and relapse conditions in those suffering from alcohol use disorder (more commonly known simply as alcoholism).

Citing a report on the study published in the scientific journal Nature, Marijuana Moment said that researchers at the University of California, San Diego conducted the clinical trial on rodents.

Two cohorts among 166 of the animals were given shots of synthetic CBD, and another was used as a control group. The rodents that ingested the CBD demonstrated milder alcohol withdrawal symptoms and had a lower risk of relapse.

Seeing a way back to CBD?

That news is encouraging, not only because of the potential new use for CBD to help treat a stubborn condition. The study was partially funded by the federal government's National Institute on Alcohol Abuse and Alcoholism, which might at least slightly tilt officialdom's sentiment on marijuana-derived substances.

CBD is by no means a major part of Curaleaf's business. The compound had its moment of popularity some years ago, but has since devolved into basically a low-profile niche product. Other successful studies like this, however, could lead to something of a revival.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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