GW Pharma Shares Up After Loss Narrows, Revenue Rises

GW Pharmaceuticals' American depositary receipts were higher after the U.K. company posted results that beat analyst expectations.
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British drugmaker GW Pharmaceuticals  (GWPH) - Get Report posted better-than-expected third-quarter revenue and earnings, sending its shares higher.  

GW Pharma's American depositary receipts at last check were up 13% to $101.03.

The Cambridge, U.K., company narrowed its net loss to $12.2 million, or 3 cents a share, from $13.8 million, or 4 cents a share, in the year-earlier period.

Revenue rose 51% to $137.1 million from $91 million.

A survey of analysts by FactSet for GW's third quarter produced consensus estimates of a GAAP net loss of 5 cents a share on revenue of $127.4 million.

U.S. sales of epilepsy drug Epidiolex stood at $121.6 million, or 89% of overall revenue. The drug, cleared by the Food and Drug Administration, contains cannabidiol, which is derived from the marijuana plant. CBD does not cause the high that marijuana does.

Revenue growth was strong in the quarter despite the challenges presented by covid-19, Chief Executive Justin Gover said in a statement.

"Epidiolex meets a serious unmet need within the field of epilepsy and we expect the product to demonstrate continued strong growth in the months and years ahead," Gover added. 

"The recent expanded indication for the treatment of seizures associated with [tuberous sclerosis complex] has been very well received by patients, clinicians and payers." 

Gover said the company had started its Phase 3 trial for nabiximols, used to treat multiple sclerosis spasticity, "which provides multiple opportunities for [a new-drug application] submission, including as early as next year."

GW Pharma is also advancing several clinical-stage pipeline candidates, including a Phase 2 trial to treat schizophrenia.