Cannabis-based firm sees shares dive on interim losses
A plunge into losses saw GW Pharmaceuticals’ share price dip 20.50p (5.59 per cent) to 346p on early UK trading.
The Cambridge medical technology company posted higher revenues for the six months ended March 31 – £15 million compared to £12.9m in the first half of 2013.
But the loss widened to £8m from £0.1m year-on-year as the company broadened its pipeline and territorial reach. The company has almost three times as much cash as it had in September – £95.6m compared to £38.1m.
GW focuses on discovering, developing and commercialising novel therapeutics from its proprietary cannabinoid product platform.
While the market was disappointed with the dive into loss, the business has never been in better shape in terms of product pipeline and significant international approvals across a range of disease areas.
CEO Justin Gover said: “I am pleased to report another busy period for GW, during which we completed a successful follow-on offering on NASDAQ and made significant progress on a number of our development programs, in particular our Epidiolex childhood epilepsy program.
“In the last quarter, both the number of Epidiolex treatment programs authorised by the FDA, and the number of children receiving Epidiolex, has significantly expanded.
“In addition, we are very pleased to announce today that the FDA has agreed to allow the start of GW-sponsored placebo-controlled trials for the treatment of Dravet syndrome and we look forward to commencing this program as rapidly as possible.
“We are also progressing towards the conclusion of our US Phase 3 cancer pain trials for Sativex as well as advancing Phase 2 trials of several other pipeline candidates. We look forward to reporting on a number of key events during the second half of 2014.”