CANNAINVESTOR Magazine September / October 2016 - Page 39

Digipath Labs also tests cannabis and cannabis-based products for potency by analyzing the chemoprofile including both cannabinoid and terpenoid profiles, which determine the suitability of specific cannabis strains for the treatment of specific ailments.

Cannabis Lab Testing Presents Timely and Growing Opportunity

With legalization, the lab testing sector is expected to experience substantial growth. GreenWave Advisors, an independent research and financial analyst firm, projects revenue of $553 million for lab testing alone if the U.S. legalizes cannabis on a federal level. When adding in related services, such as data analytics and consulting, the revenue potential could surpass $866 million. The data troves collected through the testing process could become an increasingly valuable asset and generate substantial revenue for the most accomplished laboratories. This data could also be used to determine specific genetic attributes of targeted cannabinoids and assist with maximizing medicinal benefits.