Medical marijuana company GW Pharmaceuticals (NASDAQ: GWPH) is scheduled to report first-quarter 2019 earnings results on May 6, Monday, after the closing bell. Analysts expect the company’s revenues to grow seven times compared to last year, driven by increased acceptance for cannabinoid products.
Q1 revenues are projected to be $23.32 million, compared to $3.35 million last year. However, losses are expected to widen to $2.48 per share from $0.26 per share a year ago.
Investors will be looking at the demand for its flagship drug Epidiolex, which is used to treat patients diagnosed with Dravet syndrome, a rare form of epilepsy that causes seizures right from childhood.
Epidiolex sales for Nov 1 – Dec 31 launch period stood at $4.7 million. In the first two month selling period, approximately 4,500 new patients enrolled and over 500 physicians generated dispensed prescriptions.
The UK based firm enjoys both the status of a ‘red hot’ cannabis stock, as well as the general acceptance for a pharma company. This is clearly visible from the trading charts. Investors have sent the shares up 71% in the year-to-date period. In the trailing 52 weeks, the stock has gained 27%.
In the long term, the company is expected to benefit from Medicare policies that lambast mainstream pharma companies of their “ridiculous pricing.” As GW’s products are based on cheap cannabinoid components, it is less likely to be impacted by such policies.
Analysts are pretty bullish about this stock. Eight out of 9 analysts covering the stock has a Buy rating. The stock has a 12-month average price target of $181.50, suggesting a 6% upside from the last close.