Curaleaf Holdings Inc (OTCMKTS:CURLF) Releases Response Statement After FDA Letter Questioning Its Product Quality

U.S-based cannabis operator Curaleaf Holdings Inc (OTCMKTS:CURLF) released a statement on Tuesday, through which it responded to a letter it received from the Food and Drug Administration (FDA).

The FDA sent the warning letter to Curaleaf for selling cannabis products to customers before they are approved. The letter also warned the company against using unproven claims about the ability of those products to treat diseases such as Parkinson’s disease and cancer among others. The company responded in a statement claiming that it is committed to achieving the highest compliance and quality standards.

Curaleaf to respond to the letter within the next few days

Curaleaf also announced that it will release an official response to the FDA letter within the next 15 working days. The cannabis firm also revealed that regulatory compliance is a top priority. It also revealed that the FDA letter does not raise any concerns about the consistency and quality of the company’s products.

“Selling unapproved products with unsubstantiated therapeutic claims — such as claims that CBD products can treat serious diseases and conditions — can put patients and consumers at risk,” stated FDA Commissioner, Dr. Ned Sharpless.

The FDA’s warning letter pointed out some of Curaleaf’s products that are displayed on the firm’s social media pages. The FDA considers the products as drugs because they are indicated for use to treat, diagnose or prevent disease.

Curaleaf revealed in its statement that its legal counsel is already conducting a review of the letter. The company, however, noted that it is committed to working with the FDA to ensure regulatory compliance for all its products that are available for sale.

The letter has already influenced investor action

The news about the FD’s letter to Curaleaf fueled a stock sell-off by some of the company’s investors and subsequently a slight dip in the stock value. However, some analysts, especially those from Beacon Securities believe that the situation created an opportunity for buyers to get in at a good price range and so they recommend a strong buy. Curaleaf is still a strong player in the cannabis industry which has been gaining a lot of traction thanks to cannabis legalization.

By Steven Russell

Steve covers business and investing in emerging medical marijuana markets. Steve graduated from the university of New Orleans with a degree in Broadcast Journalism. Steve has published several articles in professional journals and magazines. His experience gives readers an inside look at the intersection of his specialties, business and medical marijuana.

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