GW Pharma’s Big Run Thanks to Epidiolex


In the midst of all of this green, as American indices post gains, some investors are looking at a particular green stock that’s green in more ways than one.

It’s called GW Pharma, and its drug Epidiolex got FDA approval last year. Earnings reports show revenue increases of 66% with $4.7 million in Epidiolex sales since November and estimates that by 2021, Epidiolex will be selling $3 billion per year.

Nor is this the only news on GW Pharma that’s likely to attract investors.

“GWPH is not a one-trick pony as it has a pipeline of other drugs in the works, such as Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis,” wrote Steve Smith at Stocknews Feb. 27.  “And (GWPH) is working on products that are candidates for the treatment of glioblastoma, neonatal hypoxic-ischemic encephalopathy, and schizophrenia. Further, the company has license and development agreements with Almirall S.A. and Bayer HealthCare.”

There’s also an increase in equities to go with that success – looking at the charts you can see the steady climb year over year and month over month, although after peaking at around $180 in October, GW Pharma had a rough holiday season, tanking right at the beginning of this year down to about $100.

Hindsight is 20/20, and Monday morning quarterbacking is generally not welcomed, but if you look at the chart, you can see how GW Pharma added back in almost 100% of its value in just one quarter peaking up above $180 today.

Today, GWPH gets the Bull of the Day award from Zacks.

“There are over 100 cannabinoid compounds in the marijuana plant that could be used for medicinal research,” writes Kevin Cook.  “In a sense, GW Pharma could be seen as an important trail blazer with its successful approval and launch of Epidiolex. … In two investor presentations I did for Zacks followers before the GW earnings report, I emphasized this “trail blazer” role and also the significance of insurance companies as key partners in the patient-physician-payer alliance.”

It’s a telling example of how prudent and timely choices can affect a portfolio. Someone who bought and held in the dip will be coming out of this nicely, while those who bought at the prior peak might want to shuffle off these holdings while they can. However, some cannabis investors are more enthused about the long-term picture as legalization efforts and market expansions continue.

Get involved in doing due diligence on these types of stocks in order to discern where the gains are happening in today’s market as we enjoy a stable bull run across multiple sectors.