Tilray (TLRY 10.26%) is expanding its medical marijuana suite of products. The Canadian marijuana company announced Tuesday that it has rolled out a new line of medical goods in that country called Symbios. This covers a variety of formats, including flower, pre-rolled cigarettes, and oils.
The company, which was enlarged by an effective takeover by peer Canadian pot company Aphria that closed last month, is also launching a new line of high-potency medical topical products under the Aphria brand. These are intended for the treatment of inflammatory joint disease.
Users can opt for a formulation that consists of 750 milligrams of cannabidiol (CBD), or a mix of 375 milligrams each of CBD and tetrahydrocannabinol (THC).
With the new Symbios line, Tilray now has three sets of medical cannabis goods. The third is branded under the Tilray name.
"Our industry is only in the early stages of creating and bringing to market cannabinoid medicine options that meet patient needs," the company quoted Tilray Canada president Jim Meiers as saying. "We are committed to building our leadership position in Canada now and into the future."
The medical products segment is attractive to cannabis companies because such products are typically higher-margin than recreational offerings, even though the customer base is smaller. Marijuana companies -- particularly in the relatively limited and competitive Canadian market -- are frequently unprofitable and often struggle with cash flow.
Investors seem to be guardedly optimistic about Symbios. In late-afternoon trading on Tuesday, Tilray shares were up by slightly more than 2%, outpacing the S&P 500's 0.1% gain.