Trump's Cannabis Order Ignites a New Era for Medical Research

TORONTO, ON – December 19, 2025 – A pivotal shift in United States federal drug policy is poised to reshape the landscape of medicine and scientific discovery. President Donald Trump’s executive order, signed yesterday, directs the Attorney General to accelerate the reclassification of cannabis from a restrictive Schedule I to a more accessible Schedule III controlled substance. The move, celebrated by researchers and biopharmaceutical companies, signals a new dawn for cannabinoid-based therapies and validates the long-term strategies of companies that have prioritized rigorous scientific evidence over market hype.

For nearly a century, cannabis has been federally classified alongside substances like heroin and LSD, designated as having “no currently accepted medical use and a high potential for abuse.” This classification has erected formidable barriers to clinical research, stifling innovation and limiting patient access. The move to Schedule III, which includes substances like ketamine and Tylenol with codeine, formally acknowledges the medical potential of cannabis and is expected to dismantle many of the regulatory roadblocks that have hindered the development of new treatments.

Toronto-based biopharmaceutical firm Avicanna Inc. (TSX: AVCN), which has focused on an evidence-based pathway for cannabinoid medicine for nearly a decade, applauded the development. “This development represents an important milestone that reinforces our long-standing commitment to standardized, evidence-based approaches to cannabinoid products,” said Aras Azadian, CEO of Avicanna. “We are encouraged by the recognition of the growing body of scientific evidence supporting the medical potential of cannabinoids and by the administration’s emphasis on advancing research in this field.”

A New Frontier for Scientific Discovery

The reclassification is more than a symbolic gesture; it is a practical catalyst for innovation. Under Schedule I, researchers faced a labyrinth of stringent security protocols, licensing requirements, and limited access to research-grade materials. The move to Schedule III is anticipated to streamline this process dramatically, making it far easier to conduct the robust clinical trials necessary for FDA drug approval.

This regulatory thaw is expected to unlock billions in research funding from both federal sources and private investors who were previously wary of the legal ambiguities surrounding cannabis. With the federal government now acknowledging its medical utility, large pharmaceutical companies are more likely to enter or expand their presence in the cannabinoid space, accelerating the journey from laboratory discovery to pharmacy shelf.

While the executive order directs the Attorney General to expedite the process, the Drug Enforcement Administration (DEA) must still finalize the rulemaking. This process was initiated under the Biden administration, which saw the Department of Health and Human Services (HHS) recommend the Schedule III reclassification in August 2023. President Trump's order now provides a powerful push to complete this historic transition, with a focus on advancing medical research into the plant's therapeutic potential.

Avicanna’s Science-First Strategy Vindicated

For companies like Avicanna, the policy shift is a vindication of a strategy years in the making. Rather than focusing on the volatile recreational market, the company has cultivated a scientific platform grounded in research and development, clinical development, and medical affairs. This foundation positions it to capitalize on a newly liberalized research environment.

In 2025 alone, the company has made significant strides that highlight its readiness. Its ongoing real-world evidence study, conducted in collaboration with the prestigious University Health Network (UHN), has already enrolled approximately 450 patients to evaluate outcomes for pain, sleep, anxiety, and depression. This month, Avicanna also commenced its first Phase II randomized controlled trial to evaluate a proprietary cannabinoid formulation for arthritic pain, a critical step towards developing an FDA-approved drug.

Further bolstering its scientific credentials, the company secured a new USPTO patent for its PwdRx™ drug delivery platform and began commercializing the technology within its Rho Phyto™ medical cannabis portfolio. These advancements are not isolated; they are part of a vertically integrated ecosystem that includes a medical care platform (MyMedi.ca) and an active pharmaceutical ingredient (API) supply chain, ensuring quality control from plant to patient.

Azadian believes this regulatory direction will “facilitate further clinical research, support innovation, and encourage investment into the development of rigorously validated cannabinoid-based therapies, with longer-term implications for reimbursement and patient access.”

The Economic Ripple Effect: Beyond the Laboratory

The impact of reclassification extends far beyond the scientific community, carrying profound economic implications. One of the most significant changes would be the elimination of the IRS tax code 280E for state-legal cannabis businesses. This punitive rule, which applies only to businesses dealing in Schedule I or II substances, prevents them from deducting standard business expenses, resulting in crippling effective tax rates. Exemption from 280E would dramatically improve profitability and financial stability, allowing companies to reinvest capital into research, expansion, and job creation.

Furthermore, the move is expected to thaw relations with the financial industry. For years, banks and institutional investors have largely shunned the cannabis sector due to the risks associated with federal illegality. By lowering the perceived risk, Schedule III status could unlock access to traditional banking services, loans, and capital markets, providing the fuel needed to power the next wave of biopharmaceutical development.

From Prescription to Payer: The Ultimate Patient Benefit

Ultimately, the most important outcome of this policy shift may be its impact on patients. Acknowledging the medical value of cannabis at the federal level helps destigmatize its use and empowers healthcare providers to more confidently incorporate cannabinoid-based therapies into treatment plans.

Critically, reclassification to Schedule III paves the way for insurance reimbursement. Health insurers do not cover Schedule I substances, leaving patients to bear the full cost of medical cannabis. With its new status, FDA-approved cannabinoid drugs could become eligible for coverage by private payers and potentially federal programs like Medicare and Medicaid. This would dramatically improve affordability and access for millions of Americans suffering from chronic pain, neurological disorders, and other debilitating conditions.

Platforms like Avicanna's MyMedi.ca, which provides pharmacist-led patient support and educational resources, are already building the infrastructure needed to navigate this new landscape. By generating clinical data and fostering collaboration with the medical community, these efforts are laying the groundwork for a future where cannabinoid medicine is seamlessly integrated into mainstream healthcare. As the final regulatory steps are taken, the industry is watching closely, anticipating a new chapter defined not by legal ambiguity, but by scientific progress and patient care.