GW Pharmaceuticals Posts Narrower-than-Expected Q4 Loss
GW Pharmaceuticals, Inc. GWPH reported fourth-quarter fiscal 2015 (for the three months ended Sep 30, 2015) loss of 85 cents per share, much narrower than the Zacks Consensus Estimate of a loss of $1.38. Reported loss, however, compared unfavorably with the year-ago earnings of 2 cents.
The company’s total revenues in the fourth quarter of 2015 were $8.5 million, down 29.7% from the year-ago quarter. Revenues were also below the Zacks Consensus Estimate of $10 million.
For fiscal 2015, the company reported loss of $3.29 per share, narrower than the Zacks Consensus Estimate of a loss of $3.83. However, the figure was much wider than the year-ago loss of $1.36.
Research & development expenses were up 93.5% year over year to $38.5 million due to investment in pipeline. Sales, general and administrative expenses shot up 152.3% year over year to $7.5 million. Pre-launch commercialization activities related to Epidiolex in the U.S led to the upside.
The company’s key growth driver, Sativex, is approved outside the U.S. for the treatment of spasticity associated with multiple sclerosis. Sativex is currently being evaluated in a phase II study for spasticity due to cerebral palsy with data expected in mid-2016.
GW Pharma’s pipeline includes interesting candidates like cannabidiol-based drug, Epidiolex. Epidiolex is currently in phase III development for the treatment of Dravet syndrome and Lennox-Gastaut syndrome. The company plans to initiate another phase III study on Epidiolex for the treatment of tuberous sclerosis complex in the first quarter of 2016. Epidiolex has Fast Track designation in the U.S. for the treatment of Dravet syndrome, which should expedite the review process. Epidiolex also enjoys Orphan Drug designation in the U.S. for the treatment of Dravet syndrome and Lennox-Gastaut syndrome. Investor focus is expected to remain on pipeline updates.
GW Pharma sports a Zacks Rank #1 (Strong Buy). Other well-ranked stocks in the health care sector include Anika Therapeutics Inc. ANIK, Actelion Ltd. ALIOF and Baxalta Incorporated BXLT. While Anika and Baxalta sport the same rank as GW Pharma, Actelion carries a Zacks Rank #2 (Buy).
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