India Globalization Capital, Inc. (NYSEAMERICAN: IGC) has been seeing some heavy movement in today’s pre-market session, climbing a staggering 12.6%. The IGC movements comes with an even more impressive growth surge, considering its 9.2% in yesterday’s regular trade session alone. In fact, the stock has been riding a week-long bullish trajectory, appreciating 23.4% starting from last Friday. As a result, IGC holders have been seeing remarkable growth in their investment. The Maryland-based infrastructure commodity dealing multinational company has been making the news as of late. This newfound attention in part explains its current hype IGC is facing in the market.
IGC Growth Linked to Cannabinoid Growth Wave?
IGC has been making the news a lot as of late. Its recent hiring of Claudia Grimaldi to its majority independent board of directors was seen with optimism. However, one clear driver for this sudden growth surge links to the recently triggered cannabinoid growth wave. The announcement by US House of Representatives to call a vote for a federal legalization of marijuana set cannabinoid stocks into motion. The implications of such an outcome would be unprecedented for the industry as a whole, ushering a new wave of dynamic demand from across the USA.
IGC links to this news owing to its ‘life sciences’ division, focusing upon the research and development of plant-based products. Although the division functions within the biopharmaceutical domain, is not as significant in terms of profitability as of yet. The reason for this being none of the division’s products are generating substantial levels of revenue at present. This relates to the nature of research and development-oriented divisions, that typically have substantial cash outflows, with little inflows.
IGC Pipeline of Candidates
India Globalization’s life sciences divisions holds a robust pipeline of treatments targeting both Alzheimer’s disease along with Parkinson’s. Both of these are conditions that the global pharmaceutical industry is desperate to address through research. Moreover, IGC’s research on cannabinoid-based treatment has been showing immense promise and potential. Although most candidates remain in their phase 1 trials, they have been highly invaluable in shedding light towards cannabinoid treatment.
IGC is evidently on a massive growth spurt riding today’s weed stock growth wave. The market is racing towards cannabinoid stocks holding promise, and IGC seems like an optimal choice. With a robust pipeline of candidates in phase 1 trials, the stock stands ready to win big. Targeting Alzheimer’s and Parkinson’s, IGC could be up for a major growth explosion in the long-term.