Tilray is one of the three largest cannabis companies in the world by market value. The Canadian pharmaceutical and cannabis company’s market capitalization in February 2019 was close to EUR 5 billion.
Tilray went public in July 2018. The Canadian company was the first cannabis company to do an IPO on the US technology exchange Nasdaq. Based on the issue price of $ 17, the share price had temporarily increased more than tenfold. On September 18, 2018 alone, the price skyrocketed by 29 percent after the U.S. approved marijuana imports for medical research purposes. In December 2018, Tilray signed a medical cannabis distribution agreement with Novartis subsidiary Sandoz Generic Pharmaceuticals.
Medicinal cannabis is Tilray’s main business. Like competitors Canopy Growth, the company uses a state-of-the-art cold extraction process to preserve the content of the active ingredients in the cannabis products. The result is a pure, aromatic and effective medical product. Tilray uses colors in its medical cannabis products to help identify the general category of cannabinoids: THC-dominant, CBD-dominant and THC / CBD-balance. The company works closely with patients, doctors and regulators.
Tilray has huge growth figures. In the second quarter of 2018, the cannabis company generated 95 percent more revenue than in the same period last year. At the same time, Tilray is burdening high costs for expanding the business – but this is an investment in the future. For example, Tilray plans to enter the cannabis-based beverage market.
For cannabis expert Vivien Azer, the Tilray share is one of the outperformers in the industry in 2019. Tilray is definitely worth an investment. “We continue to see the international medical market as one of the key investment highlights for Tilray,” said Cowen’s top analyst.
The US investment bank Piper Jaffray supports Vivien Azer’s vote: In early 2019, analyst Michael Lavery upgraded the Tilray share to “Overweight”. “We expect strong long-term growth in the industry and we believe Tilray is well positioned to be one of several potential winners,” said the CNBC equity expert.
Our recommendation: It is difficult for investors to get past the Tilray share. The Canadian company is one of the market leaders in medical cannabis products. Tilray products are available in over ten countries on five continents. If you want to buy the Tilray share, however, you need strong nerves: the paper has been very volatile since the IPO.