![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Tuesday, May 12, 2020 12:22:40 PM
Demand for the marijuana drug developer's treatment for epilepsy caused shares to skyrocket last quarter.
Todd Campbell
Todd Campbell
(TMFEBCapital)
May 11, 2020 at 6:23PM
Author Bio
GW Pharmaceuticals (NASDAQ:GWPH) unveiled first-quarter financial results after the market closed on Monday, reporting revenue growth of 207% year over year to $120.6 million and a non-GAAP loss of $0.02 per share, which beat analysts expectations by $0.05 per share.
Surging demand for its marijuana treatment for epilepsy
The biotech company's revenue growth was due to surging sales of Epidiolex, a purified formulation of cannabidiol, or CBD, the second most common chemical cannabinoid found in marijuana. Growing use of Epidiolex by patients with the rare epilepsy disorders Dravet syndrome and Lennox-Gastaut syndrome resulted in net product sales of $116.1 million in the first quarter, including $106.1 million in U.S. revenue.
CBD oil being added to a prescription bottle with a dropper.
IMAGE SOURCE: GETTY IMAGES.
GW Pharmaceuticals remaining revenue came from Sativex, a THC-based drug approved in Europe for use in multiple sclerosis spasticity, or uncontrolled muscle spasms. Phase 3 studies of Sativex that could support a U.S. application for approval are expected to commence later this year.
The company's $8 million net loss in the quarter was a significant improvement from its $50 million loss in the same quarter last year, because operating expenses, including research and development costs, grew much more slowly than revenue. Overall, operating expenses increased 41% year-over-year to $127.8 million.
Epidiolex revenue could continue increasing this year following successful launches in Germany and the United Kingdom. GW Pharmaceuticals also says it plans to make Epidiolex available in France, Spain and Italy later this year, too.
Additionally, management expects a Food and Drug Administration decision to approve Epidiolex for use in tuberous sclerosis complex (TSC) on July 31. Last year, the company reported that Epidiolex's use reduced seizures caused by tumors in TSC patients by 48% in a phase 3 clinical trial. If approved, it could roughly double Epidiolex's addressable patient population.
Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming.
Cannabis legalization is sweeping over North America – 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.
And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.
Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.
Simply click here to get the full story now.
Learn more
Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
ELEMENT79 ANNOUNCES UPLISTING TO OTCQB VENTURE MARKET • ELMGF • Aug 26, 2024 10:03 AM
North Bay Resources Announces Gold Assays up to 2.2 Ounces per Ton, Fran Gold Project, British Columbia • NBRI • Aug 26, 2024 10:00 AM
PickleJar Unveils Latest Venue Managed Services Innovations in Upcoming Webinar • PKLE • Aug 23, 2024 1:11 PM
Element79 Gold Corp Provides Update on Nevada Portfolio • ELMGF • Aug 23, 2024 8:00 AM
Maybacks Adds Award Winning Show to Its Lineup Discusses Maybacks Opportunity • AHRO • Aug 22, 2024 11:30 AM
North Bay Resources Announces First Gold Concentrate at Mt. Vernon Gold Mine, Assays 12 oz/ton Gold, 17.5 oz/ton Platinum, and 8 oz./ton Silver, Sierra County, California • NBRI • Aug 22, 2024 10:28 AM