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Big Pharma Loses Billions With Each State That Legalizes Weed, So What Is Their Next Move?

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To think that Pharma doesn’t have a strategy against a plant that is costing them upwards to $10 billion of lost potential revenue is to be ignorant of the ways of Pharma.

Want to know why historically Big Pharma sat in opposition of cannabis legalization? Well, if the findings of the latest study published in the journal PLOS ONE, their loss of revenue per legalization event could be a great indicator.

Per Marijuana Moment: “The peer-reviewed research article, published in the journal PLOS ONE on Wednesday, looked at stock return and prescription drug sales data for 556 pharmaceutical companies from 1996 to 2019, analyzing market trends before and after the enactment of medical and adult-use cannabis legalization laws at the state level.

“The stock returns were ‘1.5-2% lower at 10 days after legalization,’ the study authors founds. “Returns decreased in response to both medical and recreational legalization, for both generic and brand drugmakers. Investors anticipate a single legalization event to reduce drugmaker annual sales by $3 billion on average.”  

While there has been several reports that cannabis patients prefer cannabis over their prescription meds, this study definitely shows the negative impact on Pharma ROI post legalization. However, it’s not just brand name pharmaceuticals that are taking a hit. It seems that cannabis is supplanting a lot of other generic brands as well.

prescription drugs
Photo by James Yarema via Unsplash

Researchers at the California Polytechnic State University and University of New Mexico commented:

“By expanding access and, thus use, legalization could permit cannabis to compete with conventional pharmaceuticals. Largely unpatentable, cannabis may act like a new generic entrant following medical legalization, leading some individuals to substitute away from other drugs toward cannabis. However, unlike a conventional new generic drug, cannabis use is not restricted to a single or limited set of conditions. This means that cannabis acts as a new entrant across many different drug markets simultaneously.”

Now, for some, the notion of 1.5-2% doesn’t seem like much, but on Pharma scale profits it is quite significant as the study authors related, “We find the average change in a firm’s market value per legalization event is $63 million with a total impact on market value across firms per event of $9.8 billion.”

With that much money being sucked up by cannabis, it’s no wonder that the pharmaceutical companies were hesitant towards legalizing weed. While some pharmaceutical companies are investing in creating cannabis based medicines, it’s the opioid manufacturers that are losing the most.

Not True Losses

If you look at the profits of Pharma post legalization, they still continued to make money despite legalization. However, what researchers have noticed  is that the “projections” made by Pharma weren’t met. This is one of the major differences that they found, however, this isn’t to say that there was an actual loss of revenue.

According to Marijuana Moment:

“The study also factored in shifts in pharmaceutical drug sales post-legalization. “Using the historical price-to-sales ratio of drugmakers for the year associated with each legalization event, this implies a change in annual sales across all drugmakers of $3 billion per event,” it says.”

Yet, it’s also important that we don’t jump the gun and cite all of this as fact as the study authors themselves admitted.

“The economic significance of an estimated $9.8 billion loss in market value across firms per cannabis legalization event is extremely large, however our results should be interpreted cautiously. A key limitation is that we model investors as rational, which may overstate the economic significance of our results. Second, we are limited to publicly traded firms and past legalization events. Third, we note that estimates may be sensitive to our choice of using 150 to 50 days before the legalization event. Finally, we expect there to be measurement error due to heterogeneity in the legalization and subsequent regulatory processes.

“For private and public drugmakers, we expect the response to legalization to include investment and marketing,” the study concludes, citing the fact that Pfizer spent billions to acquire a “biotech company that focuses on cannabinoid-type therapies.

“’Pharmaceutical firms have devoted substantial lobbying efforts and dollars into fighting cannabis legalization,’ it continues. ‘These are signs that the pharmaceutical industry from a marketing perspective, cannabis currently remains far from an [Food and Drug Administration]-approved therapeutic equivalent, and this might explain why pharmaceutical firms have spent less effort on detailing visits to doctors.’

“’Looking beyond effects for different stakeholder populations, our study suggests cannabis might be a useful tool for increasing competition in U.S. drug markets,’ the authors said.”

prescription drugs opioids
Photo by Christina Victoria Craft via Unsplash

It’s important to note that these pharmaceutical companies remain opposed mainly because they cannot patent cannabinoids. Since cannabis is a very simple plant to grow at home, they don’t want it legal on a federal level. Imagine if anyone could grow their own mild-pain relievers, appetite stimulators, mood enhancers, with a little bit of sunshine and dirt?

This is something that Pharma had imagined — and they didn’t like it.

The Reason for Federal Stalling?

While the Democrats and Republicans bicker over whether inclusivity clauses should be added to cannabis legalization, I cannot help thinking that the “sponsors of politicians” might not have some influence over how people are voting. After all, nearly 70% of the US population favors cannabis legalization, yet despite this super majority, cannabis remains illegal on a federal level.

Now if we take a look at the people who take money from Pharma or who hold stock in Pharma and are currently in office, we might be able to paint a picture.

Of course, there is hardly any direct paper trails showcasing Big Pharma’s opposition — save donating to anti-cannabis organizations. However, we don’t need evidence to understand the nature of Pharma.

You see, Pharma plays the market like a game of chess and the pieces are your representatives.

Watch how Pharma spends their money when it comes to voting on key regulatory issues that would affect their bottomline.

According to KHN.ORG:

“Pharmaceutical companies and their lobbying groups gave roughly $1.6 million to lawmakers during the first six months of 2021, with Republicans accepting $785,000 and Democrats $776,200, the Pharma Cash to Congress database shows. Since the 2008 cycle, the industry has generally favored Republicans. The exception was 2009-10, the last time Democrats controlled both chambers of Congress and the White House.

“Democrats again narrowly hold both the House and Senate, and political scientists and other money-in-politics experts said the contributions likely reflect who is in power, which lawmakers face tougher reelection bids next year, and who has outsize sway over legislation affecting the industry’s bottom line.

“Several pharmaceutical companies paused contributions to Republican lawmakers who voted against certifying the results of the 2020 election, blunting the GOP’s total fundraising haul and overall industry giving compared with other years.”

prescription drugs cannabis
Photo by FatCamera/Getty Images

As you can see, their money influences politics. This is nothing new, and if they are doing this so blatantly with Medicare regulations, what makes you think they don’t have any sway when it comes to cannabis legalization.

Of course, at this point it’s just “hearsay,” but considering the nature of Big Pharma, it wouldn’t surprise me if in the next 5 years we find actual evidence of them tampering with cannabis legalization, especially if people are more hesitant to use pharmaceuticals if cannabis is an alternative to treating the symptoms of their conditions.

To think that Pharma doesn’t have a strategy against a plant that is costing them upwards to $10 billion of lost potential revenue is to be ignorant of the ways of Pharma.

KHN.ORG goes on to report:

The drug industry’s campaign contributions are markedly strategic, said Steven Billet, an associate professor at the Graduate School of Political Management at George Washington University.

“This is a really well-organized commercial sector,” Billet said. “If I’m one of these PACs, I’ve surveyed the landscape at the front end of the process, decided on our agenda and budget, and figured out who I may be able to get to and who I wouldn’t be able to get to.”  

Does this sound like bribery to you? It sure sounds like that to me, but of course, when politicians accept money from private companies who are supposed to be regulated by these very politicians we call it lobbying.

Bottom Line

Cannabis legalization directly affects Pharma’s bottom line. Pharma pays politicians to “vote” the way they want to vote. In other words, they use money to buy representation that is supposed to represent you, but instead represents primarily the needs of their donors. In this case, Pharma.

Despite the US having a super majority in favor of ending the war on cannabis, we still have the Federal government stalling at every opportunity they have. Some might say that it’s “The Republicans”, but as we saw, both sides are taking money at roughly equal sizes. The politicians running the show have a higher likelihood of being bribed by Pharma.

And even though the Democrats have been “complaining” that the only reason weed is illegal is because of Republican opposition, we’re seeing that after two years of Dems holding majority of the power — IT’S STILL NOT LEGAL!

In fact, Biden and his admin had done some pretty insane actions against the cannabis community like firing staffers over past cannabis use, calling cannabis users “untrustworthy and unethical and dangerous” and dodging any question about “keeping their promises”.

Could this be because their Pharma masters are telling them to behave like this? Who knows, but it certainly smells like it.

Source: https://thefreshtoast.com/opinion/big-pharma-loses-billions-with-each-state-that-legalizes-weed-so-what-is-their-next-move/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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