GW Pharmaceuticals: Will this Hemp Stock Continue to Soar in 2020?
GW Pharmaceuticals (NASDAQ: GWPH) is one rare hemp stock that has almost doubled since March 2020. With nearly a 10% rally in the past month, GWPH has raised the bar for the medical cannabis sector. But will this hemp stock continue to soar in 2020?
Epidiolex singlehandedly drives growth
GW Pharmaceuticals’ flagship product, Epidiolex is the major factor behind its exponential growth. This CBD-based drug is known to cure epileptic seizures that happen due to two rare syndromes in early childhood.
The total sales of the hemp stock tripled to $120 million in Q1, out of which Epidiolex contributed more than 96%. Interestingly the majority of the sales occurred in the US.
The US FDA reclassifying the drug from Schedule I to Schedule V will boost the sales of Epidiolex further in the US and Europe. This reclassification means there would be fewer restrictions and more patients could access the CBD-based medicine. Even the Misuse of Drugs Regulations 2001 in the UK has reclassified the drug.
Epidiolex is also in the advanced trial stage for testing treatment-resistant epilepsy tuberous sclerosis. With more revenue streams opening up for Epidiolex, GW’s stock is likely to see a further spurt in revenue.
Sativex to be the next growth engine
Meanwhile, GW Pharmaceuticals is also working on Nabiximol, brand name, Sativex, another cannabis drug. This formula is a combination of THC and CBD, which is used for treating spasms and neuropathic pain in patients with multiple sclerosis. Sativex, which is to be administered as an oral spray, is already approved in 25 countries in Europe. Thus, there are high prospects of the drug gaining a go-ahead by the US FDA. The phase 3 studies are likely to begin in this half of 2020.
On the verge of profitability
GW Pharma has a robust balance sheet as well. The hemp stock has more than $500 million in cash which indicates its sheer strength in weathering the pandemic. The company’s Q1 numbers and the stock’s growth since March prove that the COVID-19 had a limited impact on this drug-producer.
The hemp stock reports annual losses to the tune of nearly $550 million. However, it’s on the verge of break even. As the medical cannabis company moves towards profitability, we expect the investor confidence to grow.
This hemp stock likely to hold onto the momentum
According to us, there is no stopping this hemp stock which has a strong revenue from a single drug. With Sativex and the upcoming treatment of tuberous sclerosis complex by Epidiolex, GW Pharmaceuticals is bracing itself for a more robust growth.
With limited competition, affordable drugs, and prospects of multiple revenue streams, GW Pharma is likely to continue its bull run for quite some time.
GW Pharmaceuticals: Will this Hemp Stock Continue to Soar in 2020?
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