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GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH)’s Flagship Therapies Offset Disappointing Full Year Earnings Concerns




GW Pharmaceuticals PLC- ADR(NASDAQ:GWPH) is holding steady in the market even on booking a $21.8 million loss in the fourth quarter on revenues going down by 62% compared to last year. A key factor to the stock’s resilience amidst the negative earnings results is the company’s impressive showing on new therapies that have already posted positive results on the treatment of epilepsy.

 Widening Net Loss

Revenues for the 12 months ended September 30, 2016, came in at £10.3 million, less than half the £28 million in 2015. A net loss of £63.7 million for the same period was also higher than a net loss of £44.6 million posted last year. However, it appears a decline in revenue did not have an impact on cash and cash equivalent, which soared to highs of £374. 4 million compared to £234.9 million as of last year.

Amidst the disappointing financial results, it appears investors have their sentiments on the stock fixated on the company’s long-term prospects especially on upcoming flagship therapies. GW Pharmaceuticals has already completed Phase 3 trials for its candidate drug Epidiolex for the treatment of epilepsy and is in the process of making an NDA submission.

“We are pleased to present key findings from two pivotal Phase 3 studies of Epidiolex and believe these additional positive data reinforce the robust nature of the results achieved in two of the most difficult-to-treat epilepsy patient populations,” said CEO Justin Gover.

 Epidiolex and Sativex Impact

Investors appear to have taken note of the fact that the drugs regulatory approval is in sight. Given that the drug is built on Cannabis, all but continues to affirm the company’s prospects in the fast-growing sector. GW Pharmaceuticals has since emerged as a safe bet on the marijuana sector as professional investors continue to look for opportunities as the multi-billion sector continues to hit new highs on opportunities for growth.

GW Pharmaceuticals has already won approval for the first cannabis based drug, Sativex, for the treatment of certain symptoms of multiple sclerosis all but affirming its credentials even on disappointing earnings.

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