Tilray (TLRY) betting big on medical cannabis following Trump order
Following President Trump's landmark executive order reclassifying cannabis in the United States, Tilray Brands (TLRY) announced the launch of Tilray Medical USA, Inc., which will focus on innovation and growth with medical marijuana.
Trump's executive order reclassified cannabis from a Schedule I drug to Schedule III, which is a significant step in allowing research into cannabis to be ramped up in the medical and scientific communities.
As a Schedule I drug, marijuana was listed with drugs like heroin in the government's most restrictive category, which is seen as having a high potential for abuse while offering no medical benefits. As a Schedule III drug, cannabis is now in the same category as Tylenol with codeine, ketamine and testosterone.
"Chronic pain affects nearly 1 in 4 United States adults and more than 1 in 3 United States seniors, and 6 in 10 people who use medical marijuana report doing so to manage pain," Trump said in his executive order.
He noted that 40 states in the US, as well as the District of Columbia, have now legalized the use of medical cannabis.
"Yet decades of Federal drug control policy have neglected marijuana’s medical uses," Trump added. "That oversight has limited the ability of scientists and manufacturers to complete the necessary research on safety and efficacy to inform doctors and patients."
Tilray said that its approach to medical cannabis "is grounded in its proven track record operating at scale in regulated medical cannabis markets globally, supported by established compliance systems, scientific expertise, and disciplined governance."
Although Tilray Medical is now just entering the US market, the company pointed out in a post on X that it "offers more than 200 registered medical cannabis products across international markets for therapeutic use."
"Tilray Medical has built its leadership in federally regulated medical cannabis markets globally by working closely with regulators, physicians, hospitals, and research institutions to uphold the highest standards of quality, compliance, and patient safety," the company said.
An up-and-down year for Tilray's stock
It's been a volatile ride for the Canadian company, which "was widely viewed as one of the most beleaguered names in the cannabis sector" earlier this year, according to investment research firm Trefis Team.
This has been due to disappointing earnings and regulatory uncertainty, sending shares to multi-year lows during the first half of 2025.
However, the stock has lately been on the upswing, especially after it reported a record $210 million of net revenue for its fiscal 2026 first quarter in October. It's also been boosted by diversifying its business into the alcohol and wellness segments, while building its revenue outside North America, as Trefis Team notes.
Tilray CEO Irwin D. Simon thanked President Trump for his order to reclassify cannabis, calling it “a constructive and necessary evolution of U.S. federal policy.”
"This action aligns regulation with a vast body of scientific and medical data supporting cannabis medical use and safety, economic progress, and a healthcare-focused framework, while creating a more credible foundation for medical cannabis research, clinical development, and regulatory clarity," Simon said in a statement.
Although Trump's executive order sent cannabis stocks soaring initially, they came tumbling back down to earth on Friday.
Tilray's shares dropped nearly 9.6%, while fellow Canadian cannabis company Canopy Growth Corporation (CGC) saw its stock plunge 12.4%.
What seems to have been a catalyst for the drop is investor disappointment that Trump's executive order did not go further and decriminalize marijuana for recreational use, while also not opening the door for more commercial opportunities.
Tilray's stock is down 16.1% for the year.