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The share price of GW Pharmaceuticals (LSE:GWP) has been getting healthier on almost a daily basis since early October. A well-received year end operations report was published on 18 November, but the share price was boosted even higher with the announcement today that the company’s primary product, Sativex®, has now been approved for use in Switzerland.
The GWP share price rose 12% today to £195.00.
Sativex® is a novel therapeutic drug built on GWP’s proprietary cannabinoid platform. It is used primarily to treat spasticity in patients with multiple sclerosis. Switzerland’s approval of Sativex expands GWP’s commercialization of the pharmaceutical to 23 countries. Having been the world’s first company to achieve commercialization of an effective, plant-derived cannabinoid, GWP has established itself as the leader in that platform niche of the pharmaceutical sector. GWP is actively pursuing other potential usages of that platform in general and Sativex in particular for treatment of cancer pain, epilepsy, Type 2 diabetes, schizophrenia and other illnesses.
GWP CEO Justin Gover commented that “This approval in Switzerland marks yet another regulatory success for Sativex, which is now approved in a total of 23 countries. We now look forward to working with our partners towards this launch so as to enable MS patients in Switzerland to benefit from this important new treatment.”
Although GWP’s financials for 2013 were not what some would call stellar, the operational side of the business certainly was. Here is just a sampling of the highlights of GWP’s 2013:
- $30.7 million in proceeds gained by its IPO on the NASDAQ
- Sativex approved in 22 countries, including commercial launch in Italy, pricing recommendation approval in Germany and recommendation for approval in France
- Advanced progress of Epidiolex® , built on the cannabidiol platform, for the treatment of pediatric epilepsy, with clinical trials scheduled for 2014
Gover said that “We believe that the Company is poised to meet a number of significant clinical, regulatory and commercial milestones for GW investors. These include Phase 3 data from our U.S.-focused pivotal Sativex trials, further Sativex commercial launches and sales growth, progress of the new orphan epilepsy program in the U.S., and further advancement of several other cannabinoid pipeline candidates.”
On 27 November 2012, GWP’s share price was 62.50. It has grown by 180% during the past 12 months, most of that since August. Will the share price remain at those heights? Analysts are sure to fall on both sides of optimism and skepticism. It does get a bit dicey when a stock is nearly 100 points above its 90 day moving average. However, when a pharmaceutical company has brought an effective treatment to commercialization, there may still be loftier heights to reach.
