Aurora Cannabis Inc. ACB has announced a research grant for the University of British Columbia (“UBC”) by Genome British Columbia (Genome BC), a not-for-profit organization supporting world-class genomics research and innovation in British Columbia. The collaborative project, titled “Genomics-enabled Aroma Breeding in Cannabis”, will directly support Aurora's genetics work and focus on validating genetic and chemical markers for fruity aroma in cannabis.
ACB Stock’s Trend Following the News
After the announcement, ACB shares fell 0.6% yesterday, closing at $5.37. Meanwhile, the latest collaboration with UBC underscores Aurora's dedication to innovation and scientific advancement in the cannabis sector. The genetics research aligns with its breeding goals and is set to enhance its breeding program with greater accuracy and efficiency on consumer-focused traits, driving future innovations. As a result, we anticipate that this development will positively boost market sentiment toward the stock.
The Canadian medical cannabis provider currently has a market capitalization of $297.2 million. In the last reported quarter, the company topped the Zacks Consensus Estimates for revenues and earnings by 20.2% and 68.6%, respectively. It delivered an earnings beat of 32.4%, on average, in the trailing four quarters.
More on Aurora Cannabis’ New Project
Aroma is a distinct characteristic of cannabis and an important aspect of consumer inclination. With this research, Aurora will advance beyond sensory analysis into validated aroma markers. Recently, the company patented a series of genetic and chemical markers for fruity aroma, identified through its CanD diversity panel. This collaboration will allow Aurora to validate these markers using cutting-edge approaches that would typically require significant funding. The insights gained from this work will support the discovery and launch of cultivars with unique and improved aromas, alongside high yield and potency.
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Aurora's in-kind contributions to the project include conducting sensory analysis of fruity aromas and leading bioinformatic analyses with in-house software. UBC, through Genome BC funding, will focus on sequencing transcriptomes, analyzing the volatile chemistry and conducting functional characterization of the genes responsible for fruity aromas in cannabis. If successful, the methods developed in this project will be adapted to explore other aromas and could strengthen Aurora's aroma-related intellectual property portfolio.
Industry Prospects Favoring ACB
A report from Grand View Research valued the global cannabis cultivation market at $392.1 billion in 2022 and is expected to witness a compound annual rate of 21.3% through 2030. Growing legalization and the adoption of cannabis for the treatment of chronic diseases are the key factors driving the growth. Several countries are easing the laws related to cannabis cultivation, especially for hemp cultivation, due to low THC content, which is increasing its adoption.
Other Developments in Aurora Cannabis
Earlier this month, ACB advanced research in auto-flowering technology — a genetic characteristic that automatically transitions the plant from the vegetative stage to the flowering stage rather than relying on changes in light cycles. The innovative work offers foundational insight into the flowering mechanism in cannabis, supporting future breeding strategies and potentially transforming outdoor cannabis cultivation in high-latitude regions, such as Canada.
ACB Stock Price Performance
Year to date, shares of Aurora Cannabis have risen 12.8%, the same as the industry.
ACB’s Zacks Rank and Key Picks
Aurora Cannabis currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Boston Scientific BSX, AxoGen AXGN and Phibro Animal Health PAHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific’s shares have risen 63.9% in the past year. Estimates for the company’s earnings per share (EPS) have remained constant at $2.40 in 2024 and $2.71 in 2025 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.2%. In the last reported quarter, it posted an earnings surprise of 6.9%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 194.6% in the past year compared with the industry’s growth of 22.3%. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.
Estimates for Phibro Animal Health’s EPS have risen 0.7% in 2024 in the past 30 days. Shares of the company have rallied 72.7% in the past year compared with the industry’s 25.8% growth. PAHC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 4.1%. In the last reported quarter, it delivered an earnings surprise of 20.6%.
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