Shares of Tilray Brands Inc. (TLRY) surged 5.36% in Wednesday's trading session, outperforming the broader market. The cannabis company's stock rally was fueled by a new study highlighting the potential of medical cannabis as an alternative to opioids.

According to a report published in the American Journal of Health Economics, states with medical cannabis laws saw a significant reduction in opioid prescriptions. The study, which analyzed insurance claims for 15 to 20 million Americans annually from 2007 to 2020, found that the rate of patients with opioid prescriptions fell by an average of 16% in states with medical cannabis laws. For some groups, such as cancer patients and non-cancer African American patients, the decline exceeded 20%.

This research bolsters the case for cannabis as a viable alternative to riskier medications like prescription opioid analgesics. For investors, these findings suggest potential market expansion for companies like Tilray, as the medical cannabis industry gains more credibility. The study's results could also contribute to ongoing discussions about cannabis legalization and its role in addressing the opioid crisis, potentially benefiting cannabis companies in the long term.