By William Sumner, Hemp Small business Journal Contributor
Final week, GW Pharmaceuticals (NASDAQ: GWPH) released its economic outcomes for the second quarter, and the outcomes shocked analysts and investors alike. Year-more than-year, the company’s income for the quarter rose from $three.three million to $72 million, an raise of 20.8x.
Most of that income came from sales of the company’s flagship drug, cannabidiol (CBD)-derived Epidiolex, which reached $68.four million for the quarter and $101.9 million for the initially half of the year, destroying even the most bullish of business predictions. In context, the Hemp Small business Journal’s estimate final year known as for 2019 Epidiolex sales to prime out at $65 million (which GW Pharmaceuticals subsequently surpassed in a single quarter).
Offered these outcomes, quick-term expectations are becoming heightened across the business concerning customer appetites for CBD verticals across the space.
Given that Epidiolex’s launch, about 12,000 individuals have received prescriptions for the drug, and that quantity is anticipated to raise all through the subsequent couple of years. GW Pharmaceuticals is at the moment conducting clinical trials of Epidiolex in the remedy of tuberous sclerosis complicated (TSC) in each adult and juvenile individuals.
With good outcomes from Phase three trials, the firm is anticipated to submit a supplemental new drug application (sNDA) by the finish of the year. If authorized, about 50,000 new U.S. individuals could acquire Epidiolex prescriptions.
The firm might also add sales channels in the European marketplace. Possessing final month received a good opinion from the European Medicines Agency’s (EMA) Committee for Medicinal Solutions for Human Use (CHMP) GW Pharmaceuticals expects complete EMA approval in October, clearing the way for Epidyolex (the European trademark) to hit European shelves in Q4-2019. With good outcomes for the second quarter, GW Pharmaceuticals has observed a compact surge in its stock price tag. In the instant aftermath of releasing its economic outcomes, the company’s stock rose about 11.two%, to $169.50 per share on August eight. Given that then issues have leveled off somewhat, with the stock’s price tag falling back down to about $159.38, representing an all round get of four.five%.
The achievement of Epidiolex and GW Pharmaceuticals will undoubtedly assist ratchet up the stress on the U.S. Meals and Drug Administration (FDA) to concern on a ruling on CBD.
With hundreds of CBD-primarily based items currently on the marketplace, there is clear customer demand for CBD, and with a single firm currently generating hundreds of millions from a CBD-primarily based drug, there is a robust economic incentive to supply clarity on the concern. Extra FDA guidance is anticipated this fall.
William Sumner is a writer for the hemp and cannabis business. Hailing from Panama City, Florida, William covers many subjects such as hemp legislation, investment, and business enterprise. William’s writing has appeared in publications such as Green Market place Report, Civilized, and MJINews. You can stick to William on Twitter: @W_Sumner.