$GWPH Tale of the Tape

GW Pharmaceuticals (GWPH) is a biopharmaceutical company focused on developing novel treatments from its proprietary cannabinoid platform. This Wiltshire, UK-based company’s key growth driver, Sativex, is approved outside the U.S. for the treatment of spasticity associated with multiple sclerosis.

Sativex is being evaluated in a phase III study for the treatment of pain associated with cancer. The company has initiated pivotal phase III studies on Epidiolex for childhood epilepsy. GW Pharma is also developing various other cannabinoid-based treatments for indications like glioma, ulcerative colitis, schizophrenia and type II diabetes. In this scenario, investor focus remains on pipeline updates.

GW Pharma has a good earnings track record with the company delivering positive earnings surprises in three of the last four quarters with an average surprise of 55.55%.

Currently, GW Pharma has a Zacks Rank #2 (Buy), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: GW Pharma reported wider-than-expected reported quarter loss. Our consensus called for a loss of $1.30 per share and the company reported a loss of $1.60 per share.

Revenues: Revenues were ahead of expectations. GW Pharma posted revenues of $13.6 million, compared to our consensus estimate of $10 million.

Key Stats: Sativex, approved outside the U.S. for the treatment of spasticity associated with multiple sclerosis, continues to drive revenues at GW Pharma. The company is also trying to expand the label of Sativex. Sativex is being evaluated in a phase III study for the treatment of pain associated with cancer. The company has initiated pivotal phase III studies on Epidiolex for childhood epilepsy. Initial top-line data from these studies should mature around the first quarter of 2016.