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Thursday, November 29, 2018

GW Pharma Beats Q4 EPS Estimates, Misses On Revenue


GW Pharmaceuticals plc GWPH reported financial results for its fiscal fourth quarter 2018. Compared to analysts’ consensus estimates, the company reported a better-than-expected net loss, but its top line missed the expectations.

What Happened

For the quarter ended Sept. 30, GW Pharmaceuticals posted a net loss of 23 cents per share, which was narrower than the consensus estimate of a loss of $2.46. Revenue of $2.42 million was substantially lower than the expected $5.48 million and slightly below the $2.45 million the company posted for the fourth quarter of fiscal 2017.
For the full year, GW Pharma reported a net loss of 88 cents per share, compared to a loss of 56 cents per share a year earlier. Revenue came in at $12.74 million, up 47.6 percent on the year.

Why It’s Important

GW Pharmaceuticals has the only FDA-approved CBD drug, Epidiolex, which was approved for the treatment of seizures associated with Lennox-Gastaut syndrome (LGS) or Dravet syndrome. Epidiolex was launched for sale in the U.S. on Nov. 1.
The company also has another cannabis-based drug, Sativex, which is approved for cancer pain and multiple sclerosis spasticity in the UK and certain other markets.

What’s Next

The company’s pipeline includes a number of candidates at various trial stages. Sativex is undergoing late-stage trials in the U.S. for Multiple Sclerosis spasticity and the company is expecting a meeting with the FDA regarding the drug in December. Epidiolex is expected to launch in Europe next year.
In 2019, analysts expect GW Pharmaceuticals to generate a revenue of $139.23 million.

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