U.S. Capitol, Washington, D.C. (Photo: Mike Scarcella/ALM)The lobbying arms of two big U.S. law firms have jumped into the cannabis advocacy space with contracts to represent a Delaware pharmaceutical manufacturer.
Alston & Bird and Jones Walker were retained by Noramco Inc. to lobby on federal regulation of cannabidiol, or CBD, according to recent federal disclosures. Although the compound can be derived from both marijuana and hemp, it’s the non-intoxicating hemp-derived CBD that’s at the center of a booming industry producing everything from lip balms to dog treats with the additive. CBD sales are predicted to top $2.3 billion by 2022.
Noramco produces controlled substances ingredients for the pharmaceutical industry for use in abuse prevention, attention deficit disorders as well as pain and addiction management, according to a company-provided profile. Noramco has manufactured CBD since 2016.
The lobbying registration appears to be the first federal cannabis-related advocacy work for Alston & Bird and for Jones Walker. Representatives of the two firms and Noramco did not respond to requests for comment.
Noramco retained Alston & Bird and Jones Walker shortly after spinning off a new Atlanta-based company, Purisys LLC, that will focus exclusively on supplying CBD and CBD-based ingredients to pharmaceutical and consumer product companies.
The Alston & Bird team includes Washington health care regulatory partner Marc Scheineson and counsel Theodore Schroeder, formerly chief counsel to U.S. Sen. Christopher Coons, D-Delaware. Scheineson earlier served as FDA associate commissioner for legislative affairs.
Alston & Bird represents more than 60 lobbying and has reported $6.3 million in revenue through September, according to the nonpartisan OpenSecrets lobbying database. Among the firm’s clients is CVS Health, which debuted a line of CBD products earlier this year.
Jones Walker was retained by more than three dozen lobbying clients for work in the first three quarters of 2019, according to OpenSecrets. The firm’s revenue has topped $1.7 million so far this year. The firm’s clients include companies in energy, sea transportation and finance.
Congress legalized hemp production in the 2018 Farm Bill, and the U.S. Department of Agriculture rolled out a production program for the crop in October. Federal regulation of hemp-derived CBD in consumer products, however, has been much slower to develop.
The U.S. Food and Drug Administration held a public comment session earlier this year as a possible precursor to developing new rules. Noramco vice president Bill Grubb was among dozens of people who testified at the May 31 hearing and asked for clear manufacturing and CBD content standards.
“A 2017 [Journal of American Medical Association] study of 84 CBD extract products showed that almost 70% were mislabeled, which triggered FDA warning letters to 14 businesses, Grubb said. “An average THC content of 0.4% was observed–which is enough to produce intoxication or impairment, especially among children. These examples highlight the need for federal oversight of manufacturing, testing and distribution of CBD products.”
Congress this fall has continued to push the FDA to enact rules for CBD as states create their own differing regulations.
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