A Snapshot Of America's Medical Marijuana Markets: Louisiana

Louisiana legalized medical cannabis in June 2015, and it took more than four years for sales to begin on Aug. 6, 2019.

The framework set up by the state is considered one of the most restrictive nationwide for patients and businesses alike.

With a limited list of qualifying conditions, state data shows that Louisiana registered 4,350 patients for the program as of the end of 2019. The  patient pool is 54% male with an average age of 52.

Regarding patient growth, the state cites Marijuana Policy Project projections, forecasting that a total of 100,000 to 150,000 citizens could eventually be enrolled.

Other limits on the market include a limited supply chain licenses for businesses: the state has two cultivators partnered with state universities and nine dispensaries.

Medical cannabis spending in Louisiana could reach $63 million by 2024, according to projections from Arcview Market Research and BDS Analytics. 

Louisiana's Pain Points

The signature of then-Gov. Bobby Jindal did not greenlight Louisiana's medical market as some had hoped. Nearly two years later, in the fall of 2018, hope for the kickoff of legal sales were still being dashed. 

The delay was caused by a pivot in testing plans, with the state's agriculture department assuming testing duties after a third-party lab couldn't be secured.

The delay pushed back the planned first harvest between GB Sciences Inc GBLX and Louisiana State University.

In September 2019, GB Sciences sold its 50% ownership in the venture to Lafayette-based Wellcana Plus for $16 million.

Sales finally began in August, with the state maintaining an adequate supply and projections for a modest market.

Projections from Marijuana Business Daily place first-year sales projections between $1 million and $1.5 million.

Once the market did open, it faced criticism for its lack of product diversity and its pricing. Patients can only obtain cannabis tinctures up to 30 milliliters per bottle. 

The cost of the liquid, coupled with doctor's fees, drove patients out of the market.

Alice Moon, a cannabis professional and Louisiana native now living in California, said high costs limit the market in an immense fashion.

"The cost of the product is so high that there are very few patients who can afford it, making the medical market barely existent," she told Benzinga.

In November 2019, Jessica Potts told The Daily Advertiser that her doctor fees cost $250, with three bottles of tincture running just short of $400.

"I can't financially participate, unless something changes," Potts said.

What's Next For Louisiana?

A series of proposed regulations could bring change to Louisiana's medical marketplace. If they're passed, more citizens could soon qualify for the program.

Since the start of the latest legislative session, bills aimed at qualifying hospice and palliative care patients, fibromyalgia-based chronic pain and neurodegenerative diseases have been filed.

Joining the legislative reforms is a March 2020 joint resolution that would allow municipalities to vote on legalizing cannabis in individual cities, according to Marijuana Moment. 

If the measure passes the legislature with a two-thirds vote in both chambers, it would appear on the November ballot for a final decision. There are doubts the legislation will clear the state's Republican-controlled legislature.  

With the market maturing and prices a barrier, the illicit market is likely to continue be the cannabis source of choice for many Louisiana consumers. 

Pot remains ubiquitous in Louisiana, Moon said. 

"Hit up any club in the Quarter or on Frenchmen Street and you'll get a whiff of cannabis."

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