GW Pharmaceuticals (GWPH) Q1 Earnings: What's in Store?

GW Pharmaceuticals plcGWPH is scheduled to report first-quarter fiscal 2017 results on Feb 7, before the opening bell. The company has an impressive track record so far. In fact, in the four trailing quarters, GW Pharma has surpassed estimates every time, with an average positive surprise of 42.03%.

In the last reported quarter, the company delivered a positive earnings surprise of 39.86%. Let's see how things are shaping up for this quarter.

GW Pharma's share price has increased 106.6% in the past one year, while the Zacks classified Medical Products industry declined 5.8%.

Factors at Play

GW Pharma's key growth driver is Sativex, which is approved outside the U.S. for the treatment of spasticity due to multiple sclerosis. Sativex is expected to keep up the past several quarters' growth trend.

With just one approved product in its portfolio, at the upcoming earnings release, investor focus will be on Epidiolex and other pipeline updates.

GW Pharma has made significant progress with its lead cannabinoid pipeline candidate, Epidiolex. As the fourth quarter ended in Dec 2016, the company reported positive phase III data in Dravet syndrome and Lennox-Gastaut syndrome (LGS). The company held a positive CMC pre-NDA meeting and expects to submit a New Drug Application (NDA) for Epidiolex in both Dravet syndrome and LGS with the FDA by the end of the first half of 2017.

Meanwhile, GW Pharma is evaluating Sativex in a phase II study in children with spasticity due to cerebral palsy. The company expects to report data from this trial in the first quarter of 2017.

The company's second candidate, GWP42006, is currently in a phase II clinical trial for epilepsy, with data expected in mid 2017. The company will likely commence phase II development of GWP42006 in the field of Autism Spectrum Disorders (ASD) in the third quarter of 2017. Additionally, the company begun a phase I clinical trial on the candidate in 2016 for an intravenous CBD formulation in the treatment of Neonatal Hypoxic-Ischemic Encephalopathy (NHIE). Furthermore, following positive proof-of-concept data in a phase II schizophrenia trial, the company expects to conduct more research in the field of psychiatric disease in children. GW Pharma has global commercial rights to all of these programs.

Although the company expects research and development expenditure to remain at the current levels, expenditure on phase III clinical trials is expected to decline.

Stocks that Warrant a Look

Here are a couple of health care stocks that you might want to consider, as our model shows that they have the right combination of elements - a positive Zacks Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) - to post an earnings beat this quarter.

Incyte Corporation INCY has an Earnings ESP of is +85.71% and it carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Acorda Therapeutics, Inc. ACOR has an Earnings ESP of +5.56% and a Zacks Rank #3. You can see the complete list of today's Zacks #1(Strong Buy) Rank stocks here .

AMAG Pharmaceuticals, Inc. AMAG has an Earnings ESP of +9.68% and a Zacks Rank #3.

GW Pharmaceuticals PLC Price and EPS Surprise

GW Pharmaceuticals PLC Price and EPS Surprise | GW Pharmaceuticals PLC Quote

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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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