GW Pharmaceuticals (NASDAQ:GWPH) is on the climb after the company reported positive Q1 results and news regarding its famed drug Epidiolex.
With shares on the move over the last 7 days, the company is now sitting on weekly gains of 10%. At the time of writing, GWPH stock is trading for roughly $191, up 4%, in pre-market trading.
What’s happening over at GW Pharmaceuticals? Let’s find out.
The company reported its latest quarterly earnings results, which were stronger than what analysts called for. It also showed increasing y-o-y revenue, which helped to propel GWPH stock after hours on Monday.
Importantly, sales of Epidiolex were impressive. Epidiolex is a cannabis-derived FDA approved treatment for rare types of childhood epilepsy. The drug first went on sale in November of 2018.
Overall revenue came in at $39.2 million—an increase of more than 1200% from the same period in its fiscal 2018. Then, revenue was just $3 million. But with net sales of $33.5 million for Epidiolex during the period, the majority of the company’s revenue has come from its flagship drug.
“GW Pharmaceuticals also brought in a loss of $50.1 million for the period, or 14 cents per share, narrower than its year-ago loss of $69.5 million, or 20 cents per share.”
In addition to its Q1 report, the company announced that it had positive results for its phase-three trial of the Epidiolex drug.
This study was set to evaluate Epidiolex in patients with a rare and severe type of childhood epilepsy called tuberous sclerosis complex (TSC).
According to SeekingAlpha:
“The study met the primary endpoint of a statistically significant reduction in seizure frequency from baseline compared to placebo (p=0.0009). The company says this is the first pivotal study evaluating the 25 mg/kg/day and the 50 mg/kg/day doses.”
This trial is the fifth consecutive positive result for the drug, and reiterating its success, GW Pharmaceuticals announced that it will launch Epidiolex in five major European markets by the end of 2019.
Once Epidiolex hits the European markets, there are no limits to where these shares might go.
Are you surprised by GW Pharmaceuticals Q1 results?
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