Please ensure Javascript is enabled for purposes of website accessibility

Is CBD safe? FDA Update Offers Little New Information

By Jim Crumly - Mar 6, 2020 at 1:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

But the agency's hints about its enforcement priorities could be good news for some companies making cannabidiol products.

The U.S. Food and Drug Administration gave a congressionally mandated update Friday on its progress in determining the safety of products with cannabidiol (CBD) -- a report that reiterated the agency's previously stated concerns without offering a lot of new information. The 2020 spending bills signed by President Trump in December required a report on "the agency's progress toward obtaining and analyzing data to help determine a policy of enforcement discretion and the process in which CBD meeting the definition of hemp will be evaluated for use in products."

The FDA repeated its earlier statements about potential ways that CBD products could be harmful, including the possibilities for liver injury, drug interactions, male reproductive toxicity, and side effects. It also noted the lack of data about the effects of long-term use or whether CBD might pose greater risks to more vulnerable populations such as children, pregnant and lactating women, the elderly, and fetuses.

Dropper of oil in front of cannabis plant.

Image source: Getty Images.

Those concerns don't mean that CBD is unsafe -- but given the lack of properly conducted scientific testing, the FDA can't make an assessment about whether unapproved CBD products are safe or not. The agency said it's taking steps to generate data on the subject, including sponsoring new research, and will continue to update its online resources for consumers and stakeholders.

One area that will be of interest to companies selling CBD products or ingredients for them -- such as Charlotte's Web (CWBHF 5.37%) and Valens (VLNCF 9.82%) -- and their shareholders were statements about the FDA's enforcement priorities. The agency said it has seen CBD products being marketed as treatments or cures for serious illnesses such as cancer or Alzheimer's disease. It also said it has deep concerns about products with harmful contaminants and products marketed with false statements, such as omitted ingredients or incorrect statements about their concentrations of CBD, and products marketed for use by vulnerable populations. That focus seemed to keep the door open to cannabis companies that make more modest claims about their products' efficacy and are accurate in describing what's in them.

Jim Crumly owns shares of Charlotte's Web. The Motley Fool recommends Charlotte's Web and Valens GroWorks. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Charlotte's Web Holdings, Inc. Stock Quote
Charlotte's Web Holdings, Inc.
$0.64 (5.37%) $0.03
The Valens Company Stock Quote
The Valens Company
$1.06 (9.82%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.