New Evidence Suggests Medicinal Cannabis Does Not Treat Mental Illnesses

Sky News Australia
Sky News AustraliaMar 17, 2026

Why It Matters

The findings challenge a booming $1 billion Australian medicinal‑cannabis market and could trigger stricter prescribing regulations, reshaping patient care, clinical practice, and industry profitability.

Key Takeaways

  • Lancet Psychiatry study finds no benefit for mental health
  • Evidence suggests cannabis may worsen anxiety, depression, PTSD
  • Over 700,000 Australians prescribed cannabis, 60% for mental issues
  • Industry valued at $1 billion annually despite limited clinical support
  • Calls for stricter prescribing criteria and regulatory review intensify

Summary

The video examines a new Lancet Psychiatry review that concludes medicinal cannabis offers no therapeutic benefit for anxiety, depression, or PTSD and may even exacerbate these conditions. The analysis arrives amid a surge in Australian prescriptions, with more than 700,000 patients receiving cannabis, 60% of whom are being treated for mental‑health problems, fueling a market estimated at around one billion dollars annually.

The study highlights a stark lack of robust evidence for cannabis in treating ADHD, bipolar disorder, and OCD, and points to modest or negative outcomes for the primary mental‑health indications. Despite these findings, prescribing rates remain high, driven in part by aggressive marketing on social media and clinics that churn out dozens of prescriptions per hour, raising concerns about clinical oversight.

Interviewees in the video note that the push for medicinal cannabis appears ideologically motivated rather than evidence‑based. One commentator acknowledges limited, controlled micro‑dosing may help with chronic pain but rejects its use for mood disorders. Others warn that unchecked advertising and rapid prescription practices risk patient safety and undermine medical standards.

If policymakers act on the study’s conclusions, Australia could see tighter prescribing guidelines, stricter regulation of cannabis‑focused clinics, and a potential contraction of the lucrative industry. Clinicians may need to reassess treatment plans, and investors could face heightened scrutiny as the market adjusts to evidence‑driven constraints.

Original Description

Sky News host James Macpherson looks at reports indicating medical cannabis does not treat mental health conditions.
“Is it effective? That’s the question,” Mr Macpherson said.
“A study published today … says no, the review found that there was no evidence to support the idea that medicinal cannabis helped treat anxiety, depression or PTSD.
“If anything, the evidence says it makes those things worse.”

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