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GW Pharmaceuticals Q1 Results Will Provide Important Markers For The Coming Year

May 05, 2020 12:22 PM ETGW Pharmaceuticals plc (GWPH)45 Comments
Nick Cox profile picture
Nick Cox


  • Company operations should have been only mildly affected by COVID-19 pandemic.
  • There have recently been further positive developments for the company.
  • Expansion in Europe and overseas may have been somewhat delayed by the pandemic.
  • Certain key issues at the  earnings call and management comments should be studied before further stock accumulation for the long term.

GW Pharma (NASDAQ:NASDAQ:GWPH) is set to release its Q1 2020 earnings on May 11th.

The company has had further positive developments so far this year. The stock price had been held back more by technical factors and outside developments rather than by core prospects for the company.

The provision of medication for epilepsy patients should not be directly affected by COVID-19. However the company's overseas expansion may have been slowed down. It is possible that testing and development work in both the USA and Europe may have been delayed by the restrictions.

More important than the actual numbers may be the comments of Management at the earnings call. Investors should study these comments and make long-term decisions accordingly. The day after the earnings announcement the CEO Justin Gover will be presenting at the Bank of America Healthcare Conference. That is additionally something for investors to follow closely.

The pipeline and sound financials suggest GW Pharma remains an excellent long-term play. Investors probably do not need to rush into the stock before earnings though.

Recent Developments

* As of April, "epidiolex" has been descheduled as a controlled substance under the aegis of the DEA (Drug Enforcement Agency). This means it can have a 1-year prescription and such prescriptions are easily transferable between pharmacies. This resolves a somewhat ridiculous and contradictory situation considering epidiolex was under the least harmful Schedule 5 classification under the CSA (Controlled Substances Act).

The DEA release of all Federal controls was immediate. The change on a State-by-State level can be brought in rapidly by GW Pharma and allow for cross-State lines prescriptions.

This should slightly assist the company's continuing roll-out of their treatment for Dravets Syndrome (DS) and Lennox-Gastaut Syndrome (LGS) for which epidiolex is currently approved by the FDA (Federal Drug Administration).

* As of February GW

This article was written by

Nick Cox profile picture
Nick Cox is a long-time entrepreneur and investor,currently living in Singapore.He has lived and worked in the Asia-Pacifci region for many years.He is a graduate in modern history and economics from University College,London University. His investment strategy is centred around finding long-term growth companies in the region based on inspiring Management and businesses at the cutting edge of new growth areas. Asia is the leading driver of worldwide economic growth today and for the medium term.

Analyst’s Disclosure: I am/we are long GWPH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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