Shares of GW Pharmaceuticals PLC- ADR GWPH are up nearly 120 percent in early Monday trading after the company announced positive Phase III data on Epidiolex. The study found that the drug significantly reduced seizures in children suffering from Dravet Syndrome, a condition for which there are currently no FDA-approved treatments.
“The results of this Epidiolex pivotal trial are important and exciting as they represent the first placebo-controlled evidence to support the safety and efficacy of pharmaceutical cannabidiol in children with Dravet Syndrome, one of the most severe and difficult-to-treat types of epilepsy,” Dr. Orrin Devinsky said in the company’s press release.
Related Link: 15 Marijuana Stocks To Watch In 2015: Where Are They Now?
“The data suggests that they could file on the basis of this study rather than wait for the next three, which, if they do, could drive the price even higher,” Alan Brochstein, author of 420 Investor, told Benzinga.
Most marijuana stocks were down significantly in 2015, but Brochstein believes that the big news for GW Pharmaceuticals might provide a sentiment boost for the whole marijuana industry.
“With that said, this is a clinical trial and not a drug approval, so there remains considerable binary risk, as most of the value of the company is in this key drug, Epidiolex,” he cautioned.
Even with Monday morning’s huge surge, GW Pharmaceuticals is still down 13.7 percent over the past year.
Disclosure: the author holds no position in the stocks mentioned.
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