There’s nothing hazy about the direction cannabis-based medicine developer GW Pharmaceuticals is heading in. Sales of GW's leading drug, Sativex, through its marketing partners grew to £5.4m during the first half of the year from £1.9m a year ago, which has encouraged GW to accelerate investment in a number of related medicines advancing through the pipeline.
GW's small first-half loss was due to an absence both milestone payments and major new country launches of Sativex. However, a £9.8m milestone payment in May from marketing partner Almirall puts GW on track to deliver its fourth consecutive year of profits.
Nevertheless, managing director Justin Gover insists the group is not yet an earnings story. Instead, he views GW as a company in transition. Fourteen additional European country launches are planned for Sativex next year. Meanwhile two Phase III cancer pain trials are due to complete patient recruitment by the end of 2013, and a third trial is just getting underway. Four Phase II studies are ongoing for related cannabinoid medicines treating a range of conditions such as diabetes and ulcerative colitis.
GW PHARMACEUTICALS PLC (GWP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 83p | MARKET VALUE: | £110.6m | |
| TOUCH: | 81-85p | 12-MONTH HIGH: | 133p | LOW: 74p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 11p* | NET CASH: | £26m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 16.6 | 3.07 | 2.50 | nil |
| 2012 | 11.1 | -4.10 | -2.40 | nil |
| % change | -33 | - | - | - |
Ex-div: - Payment: - *Includes intangible assets of £5.2, or 4p a share | ||||
