Shares of GW Pharmaceuticals (NASDAQ:GWPH) fell by 4% as the pharmaceutical company reported Q4 financial results that missed estimates. A wider than expected net loss of ($79.9) million was the last thing investors expected as it was a 48.23% increase, from a net loss of ($53.9) million reported last year same quarter.
Mixed Financial Results
Revenue miss in the quarter also appears to have spooked investors. The British pharmaceutical company said it generated revenues of $2.42 million in the quarter compared to $2.45 million reported last year. Analysts expected the company to post revenues of $5.42 million.
Full-year net loss surged to ($295.2) million, compared to a net loss of ($170.5) million reported last year. Full year revenue, on the other hand, rose to $12.7 million compared to $8.6 million for the year ended September 30, 2017. GW Pharmaceutical exited the fiscal year with cash and cash equivalent of $354.9 million, compared to $322.2 million as of September 30, 2017.
Cannabinoid Epidiolex Milestone
In defense of the mixed financial results, CEO, Justin Govern, insists they achieved significant milestones in the year. For starters, the company launched the first, and only FDA approved plant-derived cannabinoid drug, Epidiolex.
The launch of Epidiolex in the U.S marks an important chapter in GW Pharmaceutical’s history. The company’s sales team is currently engaging clinicians around the country in pursuit of sales opportunities. According to the CEO, awareness and interest is high among patients and physicians.
“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,” said Mr. Govern.
GW Pharmaceutical is looking to enhance its U.S. supply chain and distribution network. The company is also planning to expand its commercial footprint in 5 major European markets ahead of 2019 European launches. The Drug Enforcement Agency (DEA) has rescheduled Epidiolex to Schedule V. What this means is that physicians around the country can prescribe the Epidiolex to patients. Rescheduling also paves the way for the company to begin shipments into the U.S.
In addition, the company announced positive Phase 3 trial on the use of Epidiolex in the treatment of Dravet Syndrome. Trial results indicate that the candidate drug has the potential to trigger meaningful seizure reductions in patients struggling with the condition.
GW Pharmaceuticals has taken a significant hit in the market since the beginning of October. The stock is already down by more than 20%. Soaring net losses is a point of concern that continues to affect the stock’s sentiments.
However, the stock could bounce back from current lows as investors take note of recent developments. The company has already started selling its flagship Cannabinoid-based drug Epidiolex in the U.S. In Addition, the company’s balance sheet is solid and sufficient for pursuing opportunities capable of reinvigorating long-term growth.