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Why Creso Pharma Ltd shares rocketed 13% higher today

In early trade one of the best performers on the market has been the Creso Pharma Ltd (ASX: CPH) share price.

At the time of writing the diversified cannabis company’s shares are just a fraction away from an all-time high and up almost 13% to 88 cents.

Incredibly this means that Creso Pharma’s shares have now rallied a massive 60% since the start of the month.

What happened?

As well as benefitting from improved investor sentiment and its exposure to Canada’s recreational cannabis market, Creso Pharma’s shares have taken off today following another positive announcement.

According to the release, Creso Pharma and global pharmaceutical animal health giant Virbac have launched its anibidiol product in Switzerland through veterinary practices.

Anibidiol is a natural complementary feed for companion animals containing a standardised amount of hemp extract with cannabidiol, the non-psychoactive substance of the hemp plant. The product supports companion animals’ immune systems, its natural defences, and contributes to balanced behaviour.

The global animal health market is estimated to be worth US$30 billion per annum and is expected to continue to grow rapidly for some time to come. If Creso Pharma and rival Cannpal Animal Therapeutics Ltd (ASX: CP1) can grab a slice of this market, they’ll certainly do very well from it.

While at this stage it is only being marketed in Switzerland, I believe there is a chance it could end up going global eventually and even stocked in Australia by veterinary practices operated by National Veterinary Care Ltd (ASX: NVL) and Greencross Limited (ASX: GXL).

Should you invest?

Creso Pharma is certainly one of the best-positioned pot stocks on the Australian market in my opinion and has several potentially lucrative revenue streams.

While it is still a little early for me to invest, I’ll be watching on with interest to see how things develop over the coming months.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Greencross Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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