Pharma-Grade Cannabis Could Hit Walgreens & CVS—But Can The Industry Survive The FDA?
As the formal review process for rescheduling cannabis unfolds, industry players are closely watching its potential to transform the sector. With the DEA hearing delayed until early 2025 and a possible Trump presidency adding uncertainty, cannabis businesses are preparing for what rescheduling to Schedule III could mean.
From FDA oversight to interstate commerce and pharmaceutical-grade standards, these changes could fundamentally reshape the landscape—and investors and businesses need to be ready.
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Rescheduling: A Door To Big-Box Pharmacies?
Denise Pollicella, a cannabis attorney and head of Omnus Law‘s cannabis practice, points out that rescheduling cannabis isn’t just about new retail partnerships but about overhauling how cannabis businesses operate.
“It’s about transforming how cannabis businesses operate—adapting to FDA oversight, meeting pharmaceutical-grade standards, and navigating stricter compliance requirements,” she told Benzinga Cannabis in an exclusive interview.
Rescheduling to Schedule III could allow major pharmaceutical retailers like CVS (NYSE:CVS) and Walgreens (NASDAQ:WBA) to carry cannabis. But is the pathway straightforward?
Pollicella anticipates a system similar to the 2018 hemp legalization framework, where states submit regulatory schemes to meet federal guidelines. “Most states prefer to regulate these things themselves, particularly from a financial and tax point of view,” she said, noting states’ interest in retaining control of fees and fines.
FDA Oversight: Stricter Standards Ahead
If cannabis becomes a pharmaceutical-grade product, compliance with FDA standards will significantly change how businesses operate. Pollicella explained that the cannabis industry has historically focused on ensuring safety and avoiding contaminants, with minimal emphasis on seed traceability. “Most of the testing and analysis has revolved around making sure that it’s safe and doesn’t have contaminants, and then around THC and CBD levels,” she noted.
Pollicella added that transitioning to pharmaceutical-grade products would …