GW Pharmaceuticals (NASDAQ:GWPH) shares were surging on Wednesday as the U.S. Drug and Enforcement Administration (DEA) has plans to reclassify one of its medications.
The company’s shares were on the rise, while trading volume was also soaring by more than four times the company’s daily average following a report from Morgan Stanley’s David Lebowitz. The report claimed that the agency has plans to reclassify the company’s Epidiolex (cannabidiol), which will now be allowed for medicinal use.
The medication was approved by the FDA about two months ago to help treat multiple severe forms of epilepsy. However, due to the fact that it is a medication that comes from marijuana, it is currently considered to be a Schedule I substance along with the likes of heroin and cocaine.
The new classification will make the substance more widely accepted and less criminal than the aforementioned substances. The move is slated to take place over the next few days as Epidiolex from GW Pharmaceuticals will soon be placed as Schedule IV, along with the likes of Xanax, Ambien and Tramadol.
The decision comes as the medicinal uses of cannabis have become more widely accepted by the country as it sometimes offers a safer alternative to pharmaceuticals.
GWPH stock was up about 2.7% during regular trading hours on Thursday.