Organigram (OGI) Grows in Cannabis Space With SHRED X Heavies
Organigram Holdings Inc. OGI, a leading licensed producer of cannabis, announced the launch of SHRED X Heavies, a line of infused pre-rolls. These innovative infused pre-rolls are claimed to redefine the cannabis experience, offering consumers a potent and flavorsome option unlike anything seen before.
Potency and Flavor
Infused with diamonds and distillate, SHRED X Heavies will deliver a potency of more than 40%, catering to the demand for high-potency cannabis products. Additionally, the infusion of botanical terpenes will enhance the natural terpene profiles of the blends, creating a unique taste sensation that takes consumers to new and delicious heights.
Each package of SHRED X Heavies, named "doob tubes," will contain three 0.5g infused pre-rolls. Consumers will have the choice of Tropic Thunder and Gnarberry, two of SHRED's best-selling pre-milled blends, as well as the popular Blueberry Blaster flavor from the Rip-Strip hash range. This variety ensures that individual taste preferences are met.
Meeting Consumer Demands
Recognizing the growing demand for infused pre-rolls, which accounted for over a quarter of all pre-roll sales and more than 9% of the total cannabis category in March 2023 (Source: Hifyre), Organigram has positioned itself to lead the market with SHRED X Heavies. By addressing the key factors that drive consumer purchases — price, potency and flavor — Organigram is poised to become a category leader in all three aspects.
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SHRED X Heavies is not only the first infused pre-roll in the SHRED product portfolio but also joins a lineup of value-driven, convenient and bold-flavored offerings. From Rip-Strip Hash to pre-milled flower, gummies and vapes, SHRED caters to a wide range of consumer preferences, ensuring something for everyone.
Huge Market Prospect
With the global legalized cannabis market size projected to expand from $22.3 billion in 2021 to $135.2 billion by 2030, at a CAGR of 26.2%, the opportunities are immense (a Spherical Insights report).
The North American region leads the market, fueled by increasing legalization trends in the United States and the rising use of cannabis for recreational purposes. Technological advancements have played a pivotal role in the industry's evolution, with genetic engineering and artificial intelligence (AI) revolutionizing cannabis production. AI enables farmers to modify strains, predict weather changes and optimize CBD content.
Despite several challenges such as the risk of cannabis overdose, the positive impact on employment and tax revenues make cannabis legalization an attractive option for many nations, considering its potential in the healthcare industry.
Share Price Performance
In the past year, OGI shares have plunged 64.5% compared with the industry's decline of 24%.
Zacks Rank and Key Picks
OrganiGram currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the overall healthcare sector are Penumbra PEN, Lantheus LNTH and Haemonetics HAE. While Penumbra and Lantheus sport a Zacks Rank #1 (Strong Buy) each, Haemonetics carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra’s stock has risen 156.1% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has remained constant at $1.56 for 2023 and $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 35.6% in the past year against the industry’s 22.4% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Haemonetics’ EPS have increased from $3.43 to $3.55 for 2023 in the past 30 days. Shares of the company have increased 31.3% in the past year against the industry’s 22.4% decline.
HAE’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, Haemonetics delivered an earnings surprise of 13.24%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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