Cannabis’ new high is the Aphria and Tilray merger which was announced in December of 2020 and is set to create the largest cannabis company in the world based on pro forma earnings. What does this mean for Canopy Growth - the largest cannabis company by market cap?
Our Cannabis Patent Forecast® brings us closer to reality and gives us a clear outlook on the future of the cannabis industry. As of January 2021, Canopy Growth leads both Aphria and Tilray in the number of both applied for and granted documents, which has set them as the third largest cannabis patent holder behind Lunatech, LLC, which specializes in vape technology but does not currently have any products on the market, and cannabis pharmaceutical giant GW Pharmaceuticals.
Canopy Growth's patents can be found in 15 of the Cannabis Patent Forecast subcategories including processes for extraction, smoking devices, and food and beverage — but how do Tilray and Aphria compare? Well, in short, they are going to have plenty of catching up to do. Having only a fraction of the number of patents and barely skimming the surface of Canopy Growth’s breadth, Tilray is the only one of the two to possess cannabis patents and in just 5 subcategories, in which Canopy Growth can also be found.
Patents are valuable business assets that grant an individual rights to exclude others from using their technology. Patent holders are staking their claims in the US cannabis market now in anticipation of a broad legalization. Companies with patents will control a good bit of the market. Canopy Growth has shown a steady patenting trend over the past two years and it doesn’t appear that they will be slowing down soon.
In fact, Canopy Growth is backed by alcoholic beverage maker Constellation Brands and is in development of infused beverages which they have also patented. Tilray also has an alcoholic beverage maker partner - Anheuser-Busch InBev - but the announcement back in December 2018 did not excite many investors due to the limited scope of the partnership which would be for Canadian markets only and the little money being invested in Tilray compared to Canopy Growth.