Mexico's Lower House of Congress recently passed a bill that legalizes the use of medical marijuana and scientific research. In particular, the bill classifies the controversial psychoactive component of marijuana -- tetrahydrocannabinol or THC -- as "therapeutic". The move is akin to the U.S. Drug Enforcement Administration (DEA) rescheduling marijuana to a controlled substance that has therapeutic value for patients.

"The ruling eliminates the prohibition and criminalization of acts related to the medicinal use of marijuana and its scientific research, and those relating to the production and distribution of the plant for these purposes," read a Congressional statement.

The bill will now be sent to President Enrique Pena Nieto who is expected to sign it into law. While Pena Nieto was once a vocal opponent to legalization, his viewpoint has shifted to view drug use as a "public health problem" where users should not be criminalized. He even proposed a bill last year that would have permitted Mexicans to carry up to an ounce of marijuana, but that measure has since stalled in Congress.

Medical Marijuana Inc. in Mexico

Medical Marijuana Inc. has remained the only legal provider of CBD oils in Mexico through its HempMeds Mexico subsidiary. The company's Real Scientific Hemp Oil -- or RSHO -- brand has become synonymous with ultra-high quality and reliability, which is why the government granted the company an exclusive import license for certain medical conditions including epilepsy and neuropathic pain. At the same time, RSHO-X (RSHO with absolutely no THC) has already been used in clinical studies evaluating the effects of CBD on epilepsy.

In March, HempMeds Mexico held a press conference in Mexico City revealing the positive results of a clinical study conducted by renowned physician Dr. Saul Garza Morales on the effects of RSHO-X in treating children with severe epilepsy. The 39-patient study of children with Lennox-Gastaut syndrome showed an 84% reduction in motor seizures, 53% improvement in quality of life, and seven individuals that reported a complete elimination of seizures which was covered by the CW television network.

The combination of a product already on the market and clinical data supporting its efficacy marks a significant competitive advantage compared to other products on the market. Given this early lead, the company is well positioned to capitalize on the market as restrictions are lifted and wider access is granted for cannabidiol and other cannabinoids that may have additional uses across many different medical conditions.