#2 - GW Pharma (NASDAQ:GWPH)
GW Pharma (NASDAQ: GWPH) - GW Pharma had a big moment this summer when it received historical approval for Epidiolex, a pharmaceutical that is the first of its kind to be derived from cannabis. But since then the company has failed to sustain the momentum that pushed its stock up to its all-time high shortly before the launch. The stock is up just 2% for the year and is lagging behind others in the sector. If this was a short-term problem it would be one thing. However, in the last three years, the stock has consistently lagged behind the performance of the S&P Biotech ETF which has returned approximately 35%.
One of the reasons for the stock’s lackluster performance is a case of irrational expectations. The stock rose rapidly from $9 to $111 after its initial public offering (IPO) which may have created expectations the stock could not sustain. Although Epidiolex received approval in a very short timeframe, some analysts suggest it could have been shorter, and more importantly, the drug is experiencing some headwinds regarding pending competition from Zogenix and a question of whether major insurance companies will get behind the new drug. GW Pharma is a stock with a lot of potential, but right now it may be wise to wait until the picture gets clearer.
About GW Pharmaceuticals
GW Pharmaceuticals plc, a biopharmaceutical company, focuses on discovering, developing, and commercializing novel therapeutics from its proprietary cannabinoid product platform in various disease areas. Its lead product is Epidiolex, an oral medicine for the treatment of seizures associated with Lennox-Gastaut syndrome, Dravet syndrome, or tuberous sclerosis complex.
Read More - Current Price
- $218.96
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
