Market Overview

Goldman Sachs Sees 40% Upside In GW Pharmaceuticals

Goldman Sachs Sees 40% Upside In GW Pharmaceuticals

Shares of cannabinoid-focused biotech company GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH) are "on a path to new highs," according to Goldman Sachs.

The Analyst

Goldman Sachs analyst Salveen Richter upgraded GW Pharma from Neutral to Buy and lifted her price target to $174, suggesting roughly 40 percent upside from current levels.

The Thesis

Richter premised the upgrade on five factors, namely clobazam drug-drug interaction data presented at the American Epilepsy Society meeting, positive KOL feedback, compelling Phase 3 efficacy data for Epidiolex in Dravet Syndrome, and Lennox-Gaustaut Syndrome, significant demand for off-label use and multiple 2018 pipeline catalysts.

Clobazam drug-drug interaction data from Phase 3 studies in DS/LGS presented at the AES meeting held Dec. 1-5 indicated that Epidiolex's effect is independent and synergistic with clobazam co-therapy, Goldman said.

Key opinion leaders are positive on Epidiolex adoption and launch trajectory, Richter said. Apart from being impressed with the compelling efficacy relayed by the Phase 3 studies, physicians view Epidiolex as a novel and differentiated AED, she added.

"KOLs also noted high pre-existing interest and awareness of Epidiolex among patients and carers will likely translate into strong launch demand," Richter said.

Goldman expects a June 2018 PDUFA date, and up to 90 days for DEA rescheduling, which suggests a third quarter or fourth quarter launch. This follows the company rolling the NDA in October. Goldman estimates 2025 worldwide peak sales of $2.2 billion, of which 56 percent is expected to be derived from off-label use.

Goldman also sees pipeline optionality from additional studies. Some of the studies underway include:

  • Phase 2/3 data in infantile spasms due in the first quarter of 2018
  • Phase 3 dose-ranging data in DS in the second-half of 2018
  • Phase 3 data in tuberculosis sclerosis complex due in the second-half of 2018
  • CBDV Phase 2 data in adult-onset partial epilepsy due in the first quarter of 2018
  • Phase 2 initiation in autism spectrum disorders, expected in the first-half of 2018

"We also look to patent application decisions for Epidiolex which may extend protection beyond the 7.5/12-year exclusivity in the US/EU," Goldman said.

Price Action

The shares of GW Pharma are up over 15 percent in the year-to-date period. At time of writing, the stock was up 4.7 percent to $129.89.

Related Links:

Guy Adami Is Bullish On GW Pharmaceuticals

How to Invest In Marijuana Stocks

Latest Ratings for GWPH

Nov 2019MaintainsOverweight
Oct 2019Initiates Coverage OnBuy
Oct 2019Initiates Coverage OnBuy

View More Analyst Ratings for GWPH
View the Latest Analyst Ratings

Posted-In: Epidiolex Goldman Sachs Salveen RichterAnalyst Color Upgrades Price Target Top Stories Analyst Ratings Best of Benzinga


Related Articles (GWPH)

View Comments and Join the Discussion!

Latest Ratings

TORCCantor FitzgeraldDowngrades3.0
CIDMCanaccord GenuityMaintains1.5
TDGCanaccord GenuityMaintains620.0
DLPNCanaccord GenuityMaintains1.6
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Dollar Drifts On Dovish Fed Hike, TRY Plummets via OANDA

New Ways To Track Blockchain, Cryptocurrency Hedge Funds