What to look for when GW Pharmaceuticals (GWPH) reports Q4 earnings

GW Pharmaceuticals plc (NASDAQ: GWPH) is slated to report fourth quarter 2019 earnings results on Tuesday, February 25, after the market closes. Analysts have projected a loss of $0.75 per share on revenues of $105 million.

The company is expected to benefit from strength in sales and growth in prescriptions for Epidiolex. Last quarter, US sales for Epidiolex totaled $86.1 million and the company stated that over 15,000 patients received Epidiolex prescriptions since launch.

GW Pharma continues to work on rolling out Epidiolex in major markets outside the US and it is worth watching how these efforts have paid off. The company is also looking to use Epidiolex in new indications such as Tuberous Sclerosis Complex and is working to gain approval for the same.

The company’s other product Sativex, which is indicated for the treatment of multiple sclerosis, also has significant market opportunity in other indications as well and there are several clinical programs planned for this year.

Also read: GW Pharmaceuticals Q3 2019 Earnings Call Transcript

Last month, GW Pharma released preliminary fourth quarter and full year product sales. The company expects total net product sales to be approx. $108 million for the fourth quarter and approx. $309 million for the full year. Total net product sales of Epidiolex are expected to be around $104 million for the fourth quarter and about $296 million for the full year. 

In the third quarter of 2019, the company beat revenue estimates and reported a narrower-than-expected loss. Revenue totaled $91 million, which was above estimates of $85.3 million. Net loss was $13.8 million, or $0.04 per share. Analysts had projected a loss of $0.85 per share.

Shares of GW Pharma have gained 23% in the past three months. The stock has a strong Buy rating and an average price target of $204.43, which represents an upside of 62% from the current level.

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