GWPH Stock: Watch Out for Epidiolex Sales to Dictate Performance

GWPH Stock

Since the latter half of September, GWPH stock has been on a downward trajectory. Adding insult to injury, it lost a further 10.5% in November, and December hasn’t rewarded it much change either. Overall, the stock is down 6.8% on the year.

GWPH Stock

And this is despite GW Pharmaceuticals (NASDAQ:GWPH) being the first company to have a cannabis medication approved by the FDA.

News relative to this drug—called Epidiolex—has tended to dictate this stock’s movements. Now that it is on sale, this shouldn’t change things. The drug went to market on November 1st, so it is too early to tell what the implications will be for the stock.

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Of course, other factors like general industry malaise do contribute to the movement of a stock. But with sales of Epidiolex just kicking off, GWPH stock will be highly dependent on its sales performance in the next couple of years. Investors will need to focus here for fiscal 2019.

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Competition

Also until recently, GW Pharmaceuticals held the fort with its FDA approved cannabis medicine for epilepsy. Epidiolex has been the only one to receive this approval, which was good news for GWPH stock. However, competition now looms in the form of pharma company Zogenix (NASDAQ:ZGNX). This company is also looking to treat patients with Dravet syndrome, “which is one of the two forms of epilepsy that Epidiolex is approved to treat in the US.”

Cost

Also, the cost of Epidiolex is a concern for many. A year’s treatment is estimated at $32,500 USD, and this won’t be coverable by government initiatives. With this in mind, it is likely that, in time, more approvals will be granted to similar medicines that will no doubt be created cheaper. So while Epidiolex is the shining star at present, surely it won’t be the only cannabis-derived medicine on the market in, say, another year’s time?

Depending on how the drug performs, GWPH stock could easily soar, but it could just as easily drop off the radar.

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