GW Pharmaceuticals Plc. (Nasdaq ADR: GWPH) stock surged 12% to $120.94 intraday today (Tuesday) on encouraging results from one of its exploratory cannabinoid products.
GWPH stock is now up 68.8% in 2015.
The London-based biopharmaceutical company announced positive results in a phase 2 trial of Cannabidiol (CBD) today. The trial involved patients with schizophrenia who had previously not responded effectively to first line antipsychotic medications.
Key findings in the trail study found that CBD was consistently superior to a placebo and produced fewer negative symptoms than the leading antipsychotic medications.
"These findings further reinforce the potential role of cannabinoids in the field of neuropsychiatric disease," GW's Chief Executive Officer Justin Gover said in a statement. "We believe that the signals of efficacy demonstrated in this trial, together with a notably reassuring safety profile, provide GW with the prospect of new and distinct cannabinoid neuropsychiatric product pipeline opportunity."
GW Pharmaceuticals is also testing a product called Epidiolex, aimed at treating childhood epilepsy. GWPH plans to report initial top-line data of phase 3 clinical trials of Epidiolex by the end of 2015.
GWPH's latest data, presented at the American Academy of Neurology in early April, reinforced the company's confidence in Epidiolex becoming an important advancement in the field of treatment-resistant epilepsy.
Alternative treatments are currently available for epilepsy, but their side effects have been described as "awful." The exception is GWPH's in-trial therapy.
The company plans to submit a new drug application (NDA) to the U.S. Food and Drug Administration in 2016. It continues to work on all the details needed for a successful commercial launch of Epidiolex.
Excitement regarding Epidiolex's potential helped GWPH successfully raise $179.2 million in a secondary stock offering on May 2.
It should also continue to push the GWPH stock price higher from here...
Why GWPH Stock Is a Pot Stock to Buy Now
Money Morning Defense & Tech Specialist Michael A. Robinson singled out GWPH stock as a hot pot stock to watch in early 2014, as a flood of marijuana-related stocks were on the rise.
"With its solid science, multiple uses for its main cannabis-based biotech product, and strong alliances with global drug leaders, GW Pharmaceuticals should leave investors richly rewarded," Robinson wrote March 27, 2014, when he cited GWPH as the best profit play in the sector.
GWPH stock was trading at $65 at the time. Shares are up some 105% since then.
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In addition to Epidiolex, GW has a rich pipeline of other cannabinoid product candidates. One is Sativex, which is in phase 3 clinical development as a potential treatment of pain associated with advanced cancer. Additional treatments include compounds in phase 1 and 2 trials for glioma (a type of tumor that starts in the brain or the spine), ulcerative colitis, and Type 2 diabetes.
As Robinson noted, the company has partnerships with some of the world's largest publicly traded drug firms. GWPH stands to gain more than $300 million in revenue from those alliances alone.
Just five analysts cover GWPH stock, according to data from The Wall Street Journal. All five rate GWPH stock "Buy." That's up from three months ago when four maintained a "Buy" and one analyst rated GWPH shares "Hold."
According to Yahoo! Finance, five analysts have an average price target of $143.50 for GWPH stock. That would be a gain of more than 23% from today's opening price of $116.50.
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- The Wall Street Journal: GW Pharmaceuticals Plc. ADR
- GlobeNewswire: GW Pharmaceuticals Announced Positive Proof of Concept Data on Schizophrenia