- Epidiolex’s sales for last quarter were $25 million higher than analysts predicted.
- GW Pharma is working to launch other remedies, including medications for Rett syndrome, autism, and epilepsy.
The legalization of marijuana is growing around the world, and Wall Street analysts believe that the global sales of this industry could even reach $130 billion as the regulators evolve. Now, GW Pharmaceuticals is showing exactly how likely it is that cannabis could reach its potential, as the sales and demand for their product Epidiolex grows.
Epidiolex is the only CBD product to be federally approved in the United States, treating two types of epilepsy in children. With the increasing patient interest, the sale of this drug reached $68.4 million in the most recent quarter alone, which is double what the previous quarter had reported, surprising the analysts who projected $40.9 million.
The second quarter earnings were just released by GW Pharma for the period ending on June 30th. The total revenue reached $72 million, even though expectation was only $47 million. Upon posting the results of the Epidiolex sales, shares for GW Pharma rose by 11%. While these gains didn’t last, analysts believe that additional positive results will come.
Justin Gover, CEO of GW Pharmaceuticals, stated,
“We are pleased to report a strong second quarter of sales on Epidiolex in the U.S., reflecting high demand by U.S. patients, increased prescribing by health care provider, and ongoing progress in payer-coverage determinations.”
Ever since the launch of Epidiolex, over 12,000 patients have been prescribed the drug, thanks to the prescription of 2,500 physicians. However, GW Pharma believes that it is possible to continue this progress over the next few quarters. So far, there have been three positive trials to see if the product is capable of effectively treating Tuberous Sclerosis Complex, which will aid in their application for approval by the end of the year. If these uses are approved, it is possible that Epidiolex will be a remedy for both children and adults with this condition.
Now, GW Pharma is aiming to launch in Europe, expecting that the bureaucrats will approve Epidiolex by October. By the fourth quarter, the company wants to be ready for launch in the U.K., Germany, and France. In 2020, the company will also launch in Spain and Italy.
There are still many potentials uses for Epidiolex, as GW Pharma starts their Phase 3 trials to examine the use of the drug for Rett syndrome. Rett syndrome is a genetic brain disorder, and the use of this medication would ensure that more patients are able to get the support they need.
In the works at GW Pharma, there are several other drugs in the world, including a product called Sativex that is created to treat the spasticity of Multiple Sclerosis. Sativex has already gone through 10 separate trials, which included placebo medications as well, but there’s still more testing required to make this option into a reality. GW Pharma is also working with another non-psychoactive cannabinoid in cannabis called CBDV, which they may use to create a treatment for epilepsy and autism.
Presently, GW Pharma shares are worth $147.35 each, though Morgan Stanley analyst David Leibowitz has a price target of $238 for the shares.