GW Pharmaceuticals Plc (NASDAQ:GWPH) is expected to report fourth-quarter fiscal 2014 results on Nov 18. Last quarter, the company had posted a negative earnings surprise of 6.45%. Let’s see how things are shaping up for this announcement.
Factors at Play
Sativex is expected to be the key growth driver at GW Pharma. It is approved for the treatment of spasticity associated with multiple sclerosis. The company expects strong double-digit Sativex revenues for full-year 2014 driven by higher in-market sales. However, with continued investments in pipeline development, operating expenses are expected to increase year over year.
Investor focus should remain on pipeline update since a number of R&D activities are lined up for the rest of 2014 and early 2015. Initial top-line data from a phase III study on Sativex for cancer pain is expected by year-end. GW Pharma is also preparing to initiate a phase III study on Sativex for the treatment of multiple sclerosis spasticity according to the FDA’s Special Protocol Assessment requirement.
Meanwhile, GW Pharma is enrolling patients in a phase II/III study on Epidiolex for the treatment of Dravet syndrome in children who are undergoing treatment with other anti-epileptic drugs. We expect an update on this study along with the upcoming phase III studies on Epidiolex for Dravet syndrome and Lennox-Gastaut syndrome.
We note that Insys Therapeutics Inc (NASDAQ:INSY). is also expected to submit an investigational new drug application to the FDA for the development of its pharmaceutical cannabidiol for pediatric Dravet Syndrome and Lennox-Gastaut Syndrome in Dec 2014.
GW Pharma carries a Zacks Rank #1 (Strong Buy). Some better-ranked stocks in the health care sector are Impax Laboratories Inc (NASDAQ:IPXL). and Mallinckrodt plc. While Impax carries a Zacks Rank #1, Mallinckrodt holds a Zacks Rank #2 (Buy).