GW Pharma's Epidiolex Offers Promise for Epilepsy Patients but Risk for Investors

Motley Fool Contributor Todd Campbell, who operates E.B. Capital Markets, LLC, a research firm providing action oriented ideas to professional investors, has been cautious on the prospects for GW Pharma (NASDAQ: GWPH) (LON: GWP).  Following the recent positive clinical trial results for its Epidiolex, he shared his perspective with Motley Fool Analyst Michael Douglass in a seven-minute interview split into two videos (see below).

Summary

  • GWPH Epidiolex trial is a breakthrough in going beyond anecdotal evidence of potential therapeutic benefits from cannabinoids
  • Last year, the company stumbled in clinical trials
  • Seizure reduction in the Dravet Syndrome patient group was significant
  • Company could file with the FDA by end of 2016 and launch in 2017
  • Only 5400 patients with Dravet Syndrome in the U.S. and $16,000 price (similar to Sativex) would yield less than $100mm in sales
  • Limited commercial opportunity, perhaps as much as $200mm including Lennox-Gastaut
  • Risk of market share going to traditional dispensaries selling high-CBD extracts
  • Also, competitors could invest in R&D for rival pharmaceutical products
  • Douglass:  “Stay-away story”
  • Campbell:  “Big win for patients, perhaps not as big a win for investors”

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Published by NCV Newswire
NCV Newswire
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