It has been an exciting six months for cannabinoid drug developer GW Pharmaceuticals. After years of sometimes inconspicuous trading on the London market, the group is now generating plenty of interest in the US, where its has a secondary listing on the NASDAQ market. Indeed, a follow-on offering there in January netted $94m (£57m).
That move was designed to raise the profile of GW's childhood epilepsy product Epidiolex, which has since been awarded a special designation by the US Food and Drug Administration (FDA) - that reflects the small number of existing, effective treatments. Approximately 60 children in the US are currently undergoing treatment with the drug and the funds will allow the group to retain the commercial rights for the product once it's fully approved.
But pain relief product Sativex is likely to be the bigger star of 2014. Initial data from final-stage clinical trials is due by the year-end and should prompt the new drug application filing with the FDA for the treatment of cancer patients. It has been awarded fast track status by the US regulatory body to ensure it reaches the market as quickly as possible. Sativex is already approved in 25 countries worldwide and available to use in 12, treating spasms in multiple sclerosis patients.
Broker Peel Hunt expects the full-year adjusted loss to widen to £14.7m from 2013's loss of £10.6m.
GW PHARMACEUTICALS (GWP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 348p | MARKET VALUE: | £746m | |
| TOUCH: | 351-355p | 12-MONTH HIGH: | 422p | LOW: 45p |
| DIVIDEND YIELD: | na | PE RATIO: | na | |
| NET ASSET VALUE: | 43p | NET CASH: | £95.6m | |
| Half-year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 12.9 | -4.6 | 0.1 | nil |
| 2014 | 15.0 | -10.6 | -4.1 | nil |
| % change | +16 | - | - | - |
Ex-div: - Payment: - | ||||
