Tilray Brands Inc. (NASDAQ: TLRY) saw its stock soar 5.36% in Wednesday's trading session, outperforming the broader market. The cannabis company's shares closed at $1.68, snapping a three-day losing streak. The surge comes on the heels of a new study suggesting that medical cannabis legalization could lead to significant reductions in opioid prescriptions.

The study, published in the American Journal of Health Economics, analyzed insurance claims for 15 to 20 million Americans annually from 2007 to 2020. Researchers found that states with medical cannabis laws experienced an average 16% decrease in the rate of patients with opioid prescriptions. For some groups, such as cancer patients and non-cancer African American patients, the decline exceeded 20%. The findings bolster the case for cannabis as a viable alternative to riskier medications like prescription opioid analgesics.

This development is seen as potentially expanding the market for cannabis companies like Tilray. As more evidence emerges supporting the medical benefits of cannabis, it could lead to further legalization efforts and increased demand for cannabis products. Investors appear to be betting on the positive implications this study could have for the cannabis industry as a whole, and Tilray in particular.