This Top Pot Stock Brought Us an 86% Profit and Isn’t Done

Even after returning a hefty 86% profit in a little over a year, this pot stock isn't done.

The top pot stock we're talking about is GW Pharmaceuticals Plc. (Nasdaq ADR: GWPH).

Based in the UK, GWPH is a biopharmaceutical company engaged in discovering, developing, and commercializing cannabinoid prescription medicines.

Its main product is Sativex, a treatment for multiple sclerosis-related ailments and cancer patients.

Among its most promising pipeline therapies is Epidiolex. It's used to treat a rare and debilitating form of childhood epilepsy. Epidiolex has already progressed to phase 3 FDA trials.

On Aug. 6, GWPH was granted Fast Track designation by the U.S. Food and Drug Administration (FDA) for a proprietary intravenous form of cannabinoid to treat neonatal hypoxic-ischemic encephalopathy (NHIE).pot stocks

Additionally, the European Medicines Agency granted orphan designation for the same product to treat perinatal asphyxia, an alternate term that describes the same condition as NHIE, for which GW has already received orphan drug designation from the FDA.

A drug classified as an "orphan drug" is eligible for priority NDA review, federal tax credits for research, and a guaranteed seven-year patent on drug sales as the first company to obtain FDA marketing approval for a particular drug.

Currently, there are no approved medicines in Europe or the United States specifically indicated for NHIE or perinatal asphyxia.

"GW believes that cannabinoids may have a potentially important role in the treatment of high need pediatric neurologic conditions," the company said. "As a result, we have developed a proprietary intravenous CBD (cannabinoid) formulation specifically for use in this most vulnerable of patient populations, newborn infants with NHIE."

GW Pharma is working towards the launch of a clinical development program in this important medical condition by the end of this year.

But it isn't just promising drugs that make GWPH a top pot stock to buy. The company also has strong financials...

Strong Financials Make GWPH a Pot Stock to Buy

On Aug. 6, GW Pharma reported fiscal Q3 earnings that showed 13.2% revenue growth year over year.

Money Morning Defense & Tech Specialist Michael A. Robinson recommended GW Pharmaceuticals back on March 27, 2014. He pegged it as the "very best play in the burgeoning cannabis biotech tech industry."

GWPH closed at $60.26 the day he recommended the pot stock. Today, shares are worth roughly $112, good for an 86% gain.

And according to Robinson, it still has plenty of upside left. That's because the market for cannabis products is still taking off.

Legal marijuana is one of the fastest-growing industries in the United States. If the trend toward legalization spreads to all 50 states, marijuana could become larger than the organic food industry, according to cannabis industry investment and research firm TheArcView Group.

The U.S. market for legal cannabis grew 74% in 2014 to $2.7 billion, up from $1.5 billion in 2013. Projections are for 32% growth in the space this year.

Over the next five years, the marijuana industry will grow as more and more states legalize medical marijuana. By 2019, ArcView forecasts the overall marijuana market will generate some $11 billion annually.

Robinson cautions that not all pot stocks will be winners. GWPH, however, will continue to be the frontrunner in the space...

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