GW feels Nasdaq chill after Q4 revenue shortfall
Shares in Cambridge UK BioMedTech business GW Pharmaceuticals plc took a hit of around five per cent on early trading on NASDAQ, the US technology market, after missing Q4 revenue targets and seeing its losses widen.
The company is producing prescription medicines based on cannabis and is bidding to gain traction in a lucrative American marketplace.
Cash and equivalents at September 30 were $354.9 million compared to $322.2m the prior year and full-year revenue was up to $12.7m from $8.6m year-on-year. That’s due to an October equity financing which brought in net proceeds of $24.2m.
The annual net loss widened substantially to $295.2m from $170.5m as the company invested in the US growth strategy.
CEO Justin Gover put a positive spin on the position. He said: “We are proud to have recently launched Epidiolex, the first and only FDA-approved plant-derived cannabinoid medicine and a much needed new treatment option for patients with LGS and Dravet syndrome, two of the most difficult-to-treat forms of childhood-onset epilepsy.
“We are pleased with both the response of the medical community to the product launch and with the coverage decisions made to date by insurance providers, and we are committed to ensuring that appropriate patients can access treatment.
“We also announced positive results from an additional Phase 3 trial in Dravet syndrome, further reinforcing the potential for Epidiolex to produce clinically meaningful seizure reductions in this patient population.
“The recent US launch of Epidiolex introduces a new chapter for GW as a commercial-stage company and reinforces our world leadership in cannabinoid science.
“We fully expect to maintain this leadership as we leverage the potential of our cannabinoid product pipeline to meet unmet needs of patients across a range of therapeutic areas.”