It's been a rocky summer for the share price, but GW Pharmaceuticals (GWP) is still racing to turn cannabis into life-changing medicines. The group is focused in particular on developing a new treatment for childhood epilepsy called Epidiolex. It has managed to fully recruit for multiple final-phase trials to test the new drug's efficacy in Dravet and Lennox-Gastaut syndrome patients - two forms of the condition that are rare and more difficult to treat.
More than 850 children have also been authorised by US regulators to use Epidiolex under 'expanded access' programmes, whereby patients can try new drugs outside of a company's clinical trials. Approximately 350 children across 32 different clinical sites are already on the treatment.
Data from GWP's Dravet syndrome trial are expected this month, and results from a Lennox-Gastaut syndrome study should follow early next year. Ahead of a potential product approval, the group is investing heavily to expand its manufacturing facilities to meet the anticipated demand.
Another drug, Sativex, is already available to multiple sclerosis patients in 28 countries outside the US, but is undergoing trials to test its efficacy in cerebral palsy patients as well. Data is due in mid-2016.
| GW PHARMACEUTICALS (GWP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 443p | MARKET VALUE: | £1.16bn | |
| TOUCH: | 441-443p | 12-MONTH HIGH: | 708p | LOW: 310p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 94p | NET CASH: | £235m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 29.6 | 2.5 | 2.1 | nil |
| 2012 | 33.1 | 1.2 | 1.9 | nil |
| 2013 | 27.3 | 27.3 | -3.0 | nil |
| 2014 | 30.0 | -19.6 | -7.0 | nil |
| 2015 | 28.5 | -57.1 | -18.1 | nil |
| % change | -5 | - | - | - |
