There are both plenty of pharmaceutical as well as cannabis stocks out there on the market. However, there are almost no companies that happen to be making pharmaceutical drugs out of cannabis compounds. One of the only companies that are involved in this space is GW Pharma (NASDAQ: GWPH), which has an epilepsy drug for children called Epidiolex that’s made out of cannabidiol (CBD). Shares of GW Pharma shot up big time on Tuesday after the company reported its Q3 results, which showed that demand for this epilepsy drug continues to grow.
Epidiolex holds the distinction of being the first cannabis-based drug that the Food and Drug Administration (FDA) has approved for use. As such, GW Pharma has quickly become a rather hot name among cannabis and pharmaceutical investors. Total revenue for the quarter came in at $137.1 million, up almost 50% from the $91.0 million reported a year ago. This was significantly better than the $127.4 million that Wall Street analysts were expecting from the company.
At the same time, sales of GW Pharma’s products have remained resilient in the face of COVID-19, something which can’t be said for some other healthcare companies on the market.
“We are pleased to report strong revenue growth in the 3rd quarter despite the challenges presented by COVID-19. Epidiolex meets a serious unmet need within the field of epilepsy and we expect the product to demonstrate continued strong growth in the months and years ahead. The recent expanded indication for the treatment of seizures associated with TSC has been very well received by patients, clinicians and payers,” stated Justin Gover, GW’s CEO.
Besides Epidiolex, which remains the company’s primary blockbuster, GW Pharma is working on another cannabis-based drug, nabiximols, which is moving ahead with a phase 3 trial to treat multiple sclerosis patients. Many investors are already optimistic about this drug’s chances, as well. As it turns out, most Wall Street analysts seem to agree. Out of the 17 analysts currently covering the stock, 15 of them have a “buy” rating on GW Pharma, in comparison to only two neutral “holds.”
Shares of GW Pharma were up 21.2% on Tuesday, with the stock continuing to rise in pre-market trading by around an extra 2%. Overall, however, GW hasn’t been that great of a performer so far in 2020. The stock is more or less trading around where it started this year around. While its signature epilepsy drug is continuing to see significant sales growth, GW Pharma’s mixed performance has been less than assuring for long-term shareholders.
GW Pharma Company Profile
GW Pharmaceuticals PLC is a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform in a broad range of disease areas. The company’s lead product candidate is Epidiolex, which is a liquid formulation of pure plant-derived cannabidiol used for the treatment of a number of rare childhood-onset epilepsy disorders. The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. Geographically its presence can be seen across the region of UK, Europe, US, Canada, and others. – Warrior Trading News