GWPH stock has been witnessing continuous selling pressure over the past few weeks. Let’s analyze the recent developments from GW Pharmaceuticals (NASDAQ:GWPH).
There is no doubt that the past several months of 2019 have not been a particularly good time for cannabis stocks and due to a range of factors, many well-known stocks have recorded steep declines from their highs in February/March. However, one of the cannabis stocks that managed to emerge as the best performing stock in the industry and remained an exception was GW Pharmaceuticals.
That being said, August proved to be a disappointing month for CBD medicine manufacturer, as GWPH stock declined by as much as 12%. Hence, it is perhaps necessary to have a closer look at what actually happened.
One of the biggest drivers of growth for the company is the product Epidiolex, which is made from CBD extracted from marijuana, and in Q2 2019, it recorded highly impressive growth in sales. The sales increased by more than 100% from the 1st quarter to the 2nd quarter, and as many as 12,000 patients used medicine during the period.
While the company managed to post profits of $0.21 per share, GW Pharmaceuticals’ operating losses shrunk to $29.3 million. In the prior-year period, it had stood at a whopping $81.4 million. Despite the fall in the stock price in the month of August, GWPH stock is still up by as much as 45% in 2019 so far.
Hence, it is quite clear that the company is on the right track and the fall in the stock price could well be a case of profit booking from some investors. Analysts believe that now is perhaps the right time to invest in the GW Pharmaceuticals stock. More important, the company’s flagship product Epidiolex is all set to get approval from the European Commission within the next few weeks as well and once that happens, it could have a significantly positive impact on the overall price of GWPH stock.
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