Governance Lessons for Cannabis Companies from Purdue Pharma’s OxyContin Crisis – ICR
Phil Denning and Dan McDermott of ICR
The disgrace of Purdue Pharma after allegedly pushing OxyContin on doctors is a lesson for fast-growing cannabis companies as they develop environmental, social, and governance standards. That’s according to a new paper published by Phil Denning and Dan McDermott of the Special Situations Group at communications and advisory firm ICR.
Messrs. Denning and McDermott say cannabis companies will need to consider issues such as energy and pesticide use as well as standard corporate governance best practices like independent board oversight, shareholder rights and performance-aligned executive compensation.
Furthermore, cannabis companies are challenged by a traditional stigma attached to their product, an unclear regulatory environment, and the fact that marijuana has been suggested as an opioid alternative.
For those reasons, a robust corporate governance framework is likely critical to the success of cannabis companies as they become public companies.
The complete paper is available here.
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