GWPH stock is one of the notable cannabis stock gainers in 2019. Let's do a quick analysis of the recent developments from GW Pharmaceuticals (NASDAQ:GWPH).
Epidiolex Holds Key
As everyone knows, the ultimate aim of many marijuana companies is to get into the pharmaceutical sector in a big way, and in that regard, only GW Pharmaceuticals has managed to be a success. The company has managed to become the first firm to produce an FDA-approved medicine produced from cannabis. The medicine in question is Epidiolex, and its launch has also propelled GWPH stock to new highs this year. In 2019 alone, the stock has climbed by as much as 45%, and in such a situation, it is worthwhile to figure out whether one should be looking at GWPH stock or not.
First and foremost, Epidiolex has proven to be a success so far for the company on a commercial level, and according to reports, as many as 2,500 doctors in the United States have prescribed it for their patients. Moreover, the product has also been included in Medicaid and Medicare, which has made it possible for Epidiolex to be readily accessible to a considerable portion of the population.
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At the time of writing, GWPH stock is down 4.30% at $139.17.
More importantly, the medicine is also expected to get approval from the European authorities at some point in October and then another highly lucrative market will open up. Additionally, GW also boasts of an excellent lineup of upcoming products and two of the products, Sativex and cannabidivarin, are in different stages of development.
The potential growth in Epidiolex sales has been priced into GWPH stock's price at this point in time. While GW Pharmaceuticals is currently valued at $4.40 billion, it is under the assumption that Epidiolex is going to generate $1 billion in yearly sales five years down the line. It might well reach that target, but the timeline is perhaps a bit too far into the future.
Although there is optimism with regards to the company among analyst circles, the company did have a setback regarding one of its medicines. Experts believe that it won’t be a bad idea for investors to watch things for a bit before doing anything with GWPH stock.
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