GWPH stock is moving up double-digits after GW Pharmaceuticals (NASDAQ:GWPH) reported a big jump in its cannabis-derived epilepsy drug, Epidiolex.
The medicine uses CBD, and it is known to be an effective treatment for some types of epilepsy.
Impressive Quarterly Numbers
As everyone knows, the ultimate aim of many marijuana companies is to manufacture a product that can eventually treat medical conditions, and that ambition received a major boost today after the announcement of GW Pharmaceuticals’ Q2 2019 results. One of the most important products that GW has come up with is a cannabis-based medicine that is meant for the treatment of epilepsy, and its sales went through the roof in the quarter.
On Tuesday afternoon, GW Pharma reported that the sales of the product in question, Epidiolex, have gone up by more than twofold from the previous quarter.
In the second quarter, GW Pharma generated $68.4 million in sales from Epidiolex alone, and the performance comfortably beat analysts’ estimates. Analysts had projected Epidiolex sales of $40.9 million for the quarter, and that would have been impressive as well, considering the fact that Q1 2019 sales had stood at $33.5 million.
GWPH stock soon started to climb, soaring by as much as 10% in early trading at $167.50 on Wednesday.
The company has also revealed that as many as 12,000 patients have been treated by the medicine since it was launched.
Additionally, this quarter proved to be a landmark for GW Pharmaceuticals because it also saw the company generating profits after many years. Moreover, the profit that has been generated is substantial. The net income for the period stood at $79.7 million for the United Kingdom-based company, and it generated earnings per share of $0.21 per share. Additionally, the operating losses reduced significantly to $29.3 million in the quarter from $81.4 million in the prior-year quarter.
The operating loss is perhaps the only dampener on the overall impressive quarter, but if the company can keep up this performance, then it will not be long before GW Pharmaceuticals becomes a profitable company.
GWPH stock is one of the notable gainers so far in 2019 with a jump of over 65%.
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