GWPH stock is bouncing back from losses incurred earlier this month in light of missed earnings after GW Pharmaceuticals (NASDAQ:GWPH) announced that it had regained the rights to commercialize the cannabis-based medicine Sativex in the UK.
The pharmaceutical cannabidiol maker published its fourth-quarter results at the end of February, which missed analysts’ estimates and led to a sizeable drop off in GWPH stock. For the fourth quarter, GW Pharma reported a net loss per share of $0.07 compared with the expected figure of $0.04. Elsewhere, the British firm actually performed quite well, with revenue surging from US$6.6 million in the previous quarter to US$109.1 million following an impressive surge in sales for its flagship Epidiolex treatment.
Despite posting healthy earnings, GWPH stock has fallen over 30% since to its lowest valuation in nearly four years as the coronavirus outbreak wreaks havoc on the markets. There have been signs of recovery on Tuesday, boosted by GW Pharmaceuticals’ announcement that it had regained the rights to Sativex, a cannabis-based oral spray, which is the only UK-approved drug of its type to treat multiple sclerosis (MS).
Sativex has a complicated commercialization and distribution agreement structure, with several different firms owning the rights in different jurisdictions. The treatment had previously been marketed in the UK by Bayer AG (NASDAQ:BAYRY) since 2003, while Almirall holds the rights to the rest of Europe. Access to the drug has proven difficult in varying jurisdictions, but this year saw the UK introduce new measures that will relax restrictions on cannabis-based pharmaceuticals. GWPH stock has gained 1.6% today on the news.
The agreement between GW Pharmaceuticals and Bayer will see a transitional period put in place until December 31, at which point GW will take over all responsibilities for Sativex in the UK. In the interim, the two companies will work closely to ensure a seamless transition for health care professionals and patients, with marketing transferring to GW during 2020.
GWPH stock is currently valued at $88.67.
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