Cantor Fitzgerald Starts GW Pharmaceuticals At Buy, Is Positive On Potential For Epidiolex

Cantor FItzgerald's Elemer Piros is positive on GW Pharmaceuticals' technology value of their drug portfolio and estimated year-end 2016 cash position. He has a bullish view on the potential for Epidiolex following the published anecdotal evidence on the impact to physicians who have begun treating "highly refractory patients, mostly children, with Epidiolex in the U.S. two years ago."

Piros does acknowledge the difficult path ahead for GW Pharmaceuticals GWPH given that Epidiolex is derived from the cannabis plant which presents "cumbersome obstacles set by the DEA and the FDA for the importation and handling of the drug." He estimates the combined market potential for Epidiolex is around $3 billion for multiple orphan indications.

As for coming catalysts, Piros lists the following:
Announce data from two LGS Phase III trials (June and Q3 2016)

• Data release from second Dravet Phase III trial (H2 2016)
• File NDAs for Dravet syndrome and LGS (H1 2017)
• Release THCV Phase IIb data in diabetes (Q3 2016)
• Release Sativex CBD Phase IIa data in glioma (Q4 2016)
• Release CBDV Phase II results (adult epilepsy) (Q1 2017)
• Initiate NHIE Phase I trial (healthy subjects) (Q4 2016)

Shares of GW Pharmaceuticals closed today's regular session at $93.41, up $1.24 or 1.35%.