GW Pharmaceuticals loss narrows more than expected and revenue beats; stock rallies

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Shares of GW Pharmaceuticals PLC rallied 4.7% in premarket trading Tuesday, after the biopharmaceutical company developing therapeutics from its cannabinoid product platform reported a narrower-than-expected loss on revenue that rose above forecasts. The company also said it initiated a Phase 3 trial of a multiple sclerosis treatment. The net loss narrowed to $12.2 million, or 3 cents a share, from $13.8 million, or 4 cents a share, in the year-ago period. The FactSet per-share loss consensus was 5 cents. Revenue hiked up 50.7% to $137.1 million, above the FactSet consensus of $127.4 million. Total net product sales of Epidiolex were $132.6 million, up 12.7% from sequential second-quarter sales of $117.7 million. “We are pleased to report strong revenue growth in the 3rd quarter despite the challenges presented by COVID-19,” said Chief Executive Justin Gover. “Epidiolex meets a serious unmet need within the field of epilepsy and we expect the product to demonstrate continued strong growth in the months and years ahead.” The stock has dropped 32.8% over the past three months through Monday, while the Cannabis ETF has lost 10.0% and the S&P 500 has ticked up 0.5%.
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