The legalization of medical cannabis has led to the development of an industry that is primed for growth. In addition to the production of regular cannabis. Many companies are also involved in producing items that are made out of cannabis extracts. One such company based out of the United Kingdom, GW Pharmaceuticals (GWPH), which is involved in the CBD game. Their product production has reflected in their stock performance. Which has had an excellent year so far on the Nasdaq so far.
CBD Based Medicines
So far, this marijuana stock has surged by as much as 80%. It could have been more had the stock not been flat during the start of July. However, considering the gains, it should not be that much of a worry for the company. Moreover, this cannabis stock recently made an all-time high of $196. GW is primarily involved in producing CBD based medicines saw the surge in the company’s stock price. This spike is due to the success of Epidiolex, a CBD based medicine. That being said, the gains that the company enjoyed at the beginning was largely because of widespread optimism about the cannabis sector at large.
Success Of Epidiolex
However, the approval of Epidiolex by the FDA and its subsequent launch in the United States. This proves to be the real trigger for the growth in this pot stock. GW reported revenues of $39.2 million, out of which $33.5 million came from sales of Epidiolex. The continued success of Epidiolex is necessary for the company to continue to post strong revenues. On the other hand, the medicines on the company’s pipeline are a key factor as well. Another important trigger in the future could be the potential approval for Epidiolex from the European Union.