University at Buffalo School of Management

10 Buffalo Business Autumn 2021 Research, her lecture noted, suggests marijuana may be the longest cultivated plant in the world—a "cash crop before cash." In the U.S., the Pure Food and Drug Act of 1906 placed the first federal restrictions on it, and by 1937, it was banned nationwide. In 1971, cannabis was classified as a Schedule 1 drug under the Controlled Substances Act, putting it in the same league as heroin and ecstasy—where it remains today. "We're essentially operating in that gray area where the state allows it, but the federal government does not," Williams says. "Cannabis currently is not part of the Justice Department's enforcement objec- tives, but there's always that risk." Williams says cannabis has been effective for patients with chronic seizures, post-traumatic stress disor- der and neuropathy, Parkinson's, along with migraines and other chronic pain, which represent about three-quarters of Dent's cannabis patients. But its federal status prevents researchers from conducting clinical trials and other forward-looking studies to demon- strate its efficacy on a large scale. "Our job is to make sure patients with severe neuro- logical disorders have access to every therapy out there," Williams says. "We're a huge research institute with 100 stud- ies going on at any time—and none of them are prospective research on cannabis. That's a failing at the national level that is crippling the science." So far, the Food and Drug Administration has approved just one drug derived from marijuana to treat epilepsy. And, Larry Zielinski, executive in residence for health care admin- istration in the School of Management, is skeptical that more are coming down the pike, given estimates that put the cost of bringing a single drug to market at $2.5 billion. "In many places, this drug will already be readily avail- able through legal recreational means at affordable prices," Zielinski says, noting that health insurers don't cover canna- bis, and some doctors are hesitant to recommend it with- out peer-reviewed research. "There is no business model to support expensive clinical trials." The green rush The discrepancy between federal and state law creates significant obstacles—and confusion—for businesses and individuals. Veljko Fotak, associate professor of finance, notes that immigrants investing in a cannabis business could face deportation for violating federal immigration law. Zielinski Williams Photo: Tom Wolf Humiston

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