A crossbreed of a biotech and a cannabis company GW Pharmaceuticals (NASDAQ: GWPH), is based on England. Founded in 1998, the company prioritizes the examination of various cannabinoid formulations for development in the field of therapeutics. Although in recent years we have noticed a certain steep drop in stock’s share price (about 53%) when it comes to cannabis companies. A late surge caused by investor’s popularity was neutralized when they realized that the business model was unsustainable.
Despite all these hurdles, GW Pharmaceuticals is a medicinal marijuana company that seems to be unstoppable. The biggest weapon present in its arsenal is the drug Epidiolex, a liquid extracted from cannabidiol (CBD). Used for treatment of seizures associated with different syndromes (Lennox-Gastaut and Dravet) and epilepsy(of patients with an age of 2+). This was one of the chief reasons the company score a cool $296.4 million.
Growth potential and Risks
A $311 million product sales marked an increase of 1,921% when compared to that of a meager $15.4 million recorded at the end of 2018. Although those numbers sound tempting, there are few points an aspiring investor needs to look upon before acquiring a gwph stock at https://www.webull.com/quote/nasdaq-gwph. Although there is a lot of potential in the company’s drugs (no puns intended), one must also take a look at the company’s past losses. A loss of $17.7 million was better in the paper, when compared to that of a $305 million loss posted in 2018.
Since GW Pharmaceuticals is a small company (with 900 employees) and has a new sales force when compared to that of new medical companies, there are chances that the company could be bought by another well-established brand or a larger pharmaceutical company. The reason being that lot of these emerging drug companies don’t invest much or don’t heir a marketing team unless they think that their product is marketable. Although acquisition by a bigger brand won’t affect people who own a gwph stock.
Key reasons for the rise
The rise in demand for Epidiolex has been one of the chief reasons regarding the recent rise of the company. Making the retail of Epidiolex legal in the United States was one of the key points for the company.
Predictions of Quantitative model
As per estimations of top analysts, the revenue of $108.1 million would hit a growth of 175.5% from last year’s quarter. Also, loss per share was fixed at 87 cents, which also predicts a 48.2% narrower loss. Looking at the Q1 model the company will use a quantitative model that will allow gwph stock to have positive earnings ESP with Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can also check fb stock at https://www.webull.com/quote/nasdaq-fb.