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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