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Can Epidolex Drive GW Pharmaceuticals' (GWPH) Q2 Earnings?

Zacks Equity Research

GW Pharmaceuticals plc GWPH is scheduled to report second-quarter fiscal 2019 results on May 6, 2019 after market close.

In the first quarter of fiscal 2019, the company’s earnings per share exceeded the Zacks Consensus Estimate by 20.88%. It delivered a positive surprise in two of the trailing four quarters, the average beat being 4.14%.

Let’s take a look at how things are shaping up prior to this announcement.

Factors at Play

Following the U.S.-commercial launch of Epidolex last Novemberas thefirst cannabis-derived drug for the treatment of patients with Lennox-Gastaut syndrome (LGS) and Dravet syndrome, there has been no turning back for GW Pharmaceuticals.

GW Pharmaceuticals PLC Price and EPS Surprise

GW Pharmaceuticals PLC Price and EPS Surprise | GW Pharmaceuticals PLC Quote

Over the last few months, the company is witnessing a solid new patient enrollment for the medicine and also a huge number of physicians are recommending the same in their prescriptions. Prescription growth in January 2019 over December 2018 was approximately 150%. The above trend clearly indicates a strong quarterly show ahead for GW Pharmaceuticals.

In terms of coverage determination, the company achieved a major milestone of late. Per the company, realizing the value proposition for Epidiolex, many payers have already made a coverage determination for the product. Express Scripts has placed Epidiolex as a preferred brand on their national formulary.

According to GW Pharmaceuticals, over 80% of all commercial lives covered in the United States, now has a coverage determination with 60% of the same count covered with either no Prior Authorization (PA) or PA under the label. This, in turn, should further bump up sales for Epidolex in the quarter under review.

Here’s What the Quantitative Model Predicts

The proven Zacks model conclusively shows that any company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chances of beating estimates if it also has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticalshas a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination that does not hint at an earnings beat for the stock this reporting cycle. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few stocks worth considering as these have the right combination of elements to beat on earnings in the upcoming quarterly results.

Unum Therapeutics Inc. UMRX has an Earnings ESP of +13.60% and a Zacks Rank #3.

Neon Therapeutics, Inc. NTGN has an Earnings ESP of +17.92% and a Zacks Rank of 3.

Acceleron Pharma Inc. XLRN has an Earnings ESP of +0.16% and a Zacks Rank of 2.

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GW Pharmaceuticals PLC (GWPH) : Free Stock Analysis Report
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