GWPH Stock Gains 3%: Epidiolex Green Lit by European Commission

GWPH stock

GWPH stock is witnessing solid gains in early session on Monday after GW Pharmaceuticals (NASDAQ:GWPH) announced that the European regulators approved the company's CBD oil in two seizure disorders.

Impressive Development

The cannabis industry has been reeling from a supply slowdown over the past few months, and many pot stocks gave up their gains. However, today, the industry received a huge boost from the European Union. In a landmark development, the relevant regulatory authority in the European Union has approved the cannabis-based medicine called Epidiolex, manufactured by GW Pharmaceuticals, as a prescription.

This is a significant development because it now creates a platform for Epidiolex to be introduced into the entire continent as prescription medicine. The long-term effects of this approval of the medicine could be huge for the medical cannabis industry.

The medicine in question is primarily meant for helping with seizures that can be caused by those suffering from various forms of childhood epilepsy. The medicine is CBD-based, and it is a cannabis by-product that does not have an intoxicating effect on people.

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GWPH stock is up over 3% at $133 on the exciting news.

Epidiolex is a liquid medicine that needs to be drunk by the patient. It is an important move, and one that came after several nations in the European Union decided to move towards legalizing marijuana. Some of the nations at the forefront of this move have been Germany, the United Kingdom, and Italy.

For GW Pharmaceuticals, it is a huge development, and it now opens up a massive market for the product that has already been recording impressive sales figures. In Q2 2019, the company recorded a 100% rise in Epidiolex sales sequentially and revealed that as many as 12,000 patients have been treated with the medicine in that particular quarter.

In addition to that, GW Pharmaceuticals also managed to reduce its operating losses significantly on a year-on-year basis. The losses in Q2 2019 came in at $29.3 million, which is significantly lower than the $81.4 million loss in the year-ago quarter. There might have been a bit of a selloff following the results, but GWPH stock remains a high performer among cannabis stocks in 2019 so far.

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