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GW Pharmaceuticals (GWPH) Posts Narrower Q1 Loss (Revised) - Tale of the Tape

GW Pharmaceuticals plc ( GWPH ) is a biopharmaceutical company focused on developing novel treatments from its proprietary cannabinoid platform. This Salisbury, UK-based company's key growth driver, Sativex, is approved outside the U.S. for the treatment of spasticity associated with multiple sclerosis. 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 since a number of pipeline related activities are lined up for the rest of 2015 apart from the usual top-and bottom-line numbers.

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 95.44%. Estimate revisions are, however, disappointing with analysts upping their loss estimates for both 2015 and 2016, respectively.

Currently, GW Pharma has a Zacks Rank #3 (Hold), 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 narrower-than-expected first quarter loss. Our consensus called for a loss of 91 cents per share and the company reported a loss of 22 cents per share.

Revenues: Revenues fell short of expectations. GW Pharma posted revenues of $12.4 million, compared to our consensus estimate of $13 million.

Key Stats: Sativex continues to drive revenues at GW Pharma. Currently, the company is developing Sativex in three phase III studies for cancer pain. The first study missed its primary endpoint. However, the company plans to file a new drug application with the FDA provided results (expected in the second half of 2015) from two ongoing additional pivotal phase III studies, are positive. Pivotal studies on the epilepsy candidate, Epidiolex (Dravet and Lennox-Gastaut syndrome) are expected to begin at the end of the first quarter of 2015.

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(We are reissuing this article to correct a mistake. The original article, issued earlier today, should no longer be relied upon.)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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