GWPH stock is having its worst one-day fall in the past few months despite GW Pharmaceuticals (NASDAQ:GWPH) posting better-than-expected revenue from its flagship product, Epidiolex.
Despite the troubles of the past few months, some companies in the cannabis industry have managed to perform well in the third quarter, and the latest company to exceed expectations is GW Pharmaceuticals. GW Pharmaceuticals is involved in producing medicines derived from CBD, and its most important product is Epidiolex, a CBD-infused medicine meant for epilepsy.
In its Q3 2019, the company managed to surpass expectations with regards to revenues generated from Epidiolex, and it goes without saying that this is a significant development. Considering the fact that this is the first year for the product, the performance has been decent, and the company’s Chief Executive Officer, Justin Gover, said as much.
“In this first year of launch, we are pleased to report continued Epidiolex revenue growth in the U.S.”
However, despite the commendable performance on that front, GW stock plunged sharply in early trading on Wednesday. GWPH stock plunged by as much as 11.90% at $118.70, and it is quite clear that investors are not impressed with the company’s performance.
GW’s revenues rose from only $2.4 million in the year-ago period to $90.9 million in Q3 2019, and that reflects healthy growth. In addition to that, the company also managed to narrow its losses considerably from the year-ago period.
In the third quarter of 2018, the company suffered a loss of $79.9 million (23 cents per share), but in Q3 2019, the losses have been narrowed to $13.8 million (4 cents per share). While the plunge in the stock price was definitely big news, it is also important to note that the revenues from Epidiolex were also important. Analysts had estimated revenues of $85.2 million from the sale of the CBD epilepsy product, but GW managed to generate revenues of as much as $86.1 million from the Epidiolex in the quarter.
Despite today’s slump, GWPH stock is still up 18% since the beginning of this year.
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