London, UK based GW Pharmaceuticals PLC (Nasdaq: GWPH) announced today it plans to sell $225 million of American Depositary Shares (ADSs) representing ordinary shares on the NASDAQ. No exact details are yet in place, so the offering is not yet guaranteed. Goldman Sachs & Co. LLC, Morgan Stanley, BofA Merrill Lynch and Cowen will be underwriters.
GW commercialized the world’s first plant-derived CBD prescription drug, Sativex® (nabiximols), which is approved for treatment of multiple sclerosis spasticity in many countries outside the USA. The company has a pipeline of other CBD product candidates in Phase 1 and 2 trials for glioblastoma, schizophrenia, and epilepsy.
Investor expectations are high for GW’s drug Epidiolex that treats childhood epilepsy. GW expects a decision from the FDA on it by mid-2018. “During 2017, a substantial body of positive clinical data on Epidiolex was published and presented… Beyond Epidiolex…we continue to advance a number of additional exciting pipeline clinical programs,” stated Justin Gover, GW’s Chief Executive Officer.”
GW’s revenue for the fiscal year 2017 ending September 30 was US$11.0 million, while the company lost US$175.9 million over the year. GW currently has $322.2 million in cash.
The stock closed today at $116, down 2.86%.
Source GW Pharma press release