Why Althea (ASX:AGH) and these ASX cannabis shares are smoking the market today

The Althea Group Holdings Ltd (ASX:AGH) share price and fellow cannabis companies are rocketing higher on Wednesday. Here's why…

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cannabis leaves on a rising line graph representing growth of ASX cannabis share price

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The market may be sinking lower today but that hasn't stopped ASX cannabis shares from storming higher.

For example, at the time of writing the Althea Group Holdings Ltd (ASX: AGH) share price is up 8% to 54 cents.

Elsewhere, the Auscann Group Holdings Ltd (ASX: AC8) share price is up 3% and the Cann Group Ltd (ASX: CAN) share price is 6% higher.

Why are ASX cannabis shares on a high today?

Investors have been buying ASX cannabis shares after a positive industry development this morning.

That development is the Therapeutic Goods Administration (TGA) releasing a notice of an interim decision to amend the Poisons Standard for cannabidiol (CBD).

This amendment would see CBD supplied for therapeutic use over the counter in pharmacies without the need for a prescription.

Althea has responded to the news by revealing that it has been engaging with the TGA throughout the consultation process and is supportive of the amendment.

It notes that the proposed amendment would bring patient access into closer alignment with comparable international jurisdictions, improving access to CBD products for therapeutic use.

Althea's CEO, Josh Fegan, commented: "We applaud the TGA's interim decision in this matter and see it as one of the biggest developments in our industry to date. The interim decision reflects the significant shift in community and government attitudes towards medicinal cannabis since it was legalised in Australia in late 2016, which has seen it move from a fringe alternative towards an accepted mainstream option."

"As a strong advocate for patient access, Althea has closely monitored the proposed amendment since it began and has participated in the consultation process. We are excited by the TGA's interim decision to down schedule CBD products and see this development as a big step forward for prescription cannabis products already available in Australia," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.

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