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Actionable news in GWPH: GW Pharmaceuticals Plc,

Two Polar Opposite Views on GW Cannabinoid Drug Upside

GW Pharmaceuticals PLC (NASDAQ: GWPH) was seeing some selling pressure after the company reported earnings. Its third quarter loss was actually better than expected, but revenues of $3.1 million were softer than expected. What most investors think about GW is quite mixed, and this company’s pivotal future is generally what the shares trade on rather than the miniscule revenues of today. The consensus estimate from Thomson Reuters is not calling for revenues to launch off until 2018.

What stands out so much here is when you compare an extremely bullish analyst report to the most bearish. One is calling for about 70% upside and one is calling for the stock to fall by more than half.

GW Pharma reported late on Tuesday positive Phase III Epidiolex pivotal trial data in its Lennox-Gastaut Syndrome (LGS) study. They also talked up a positive FDA pre-NDA meeting, and they said that the new drug application for Dravet syndrome and LGS are on track for the first half of 2017 submission.

An issue to consider here is that GW’s Stephen Wright notified the company that he intends to retire. Wright will step down as Chief Medical Officer and as a member of GW’s board of directors on May 1, 2017.

So, how is it that two analysts see the exact same data and have polar opposite views? Much of this may be on bias and opinions of what the market will give a future value for even if an...


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