GW Pharmaceuticals plc (GWPH) announced financial results for the fourth quarter and full-year ended December 31, 2019, with total net product sales of Epidiolex of $104.5 million for the fourth quarter and $296.4 million for the full year. Total revenues were $109 million and the S&P Capital IQ estimate was for revenue of $80 million and so the company beat on that metric.
In addition to the strong sales, the company also trimmed its net losses to $24.9 million versus the net loss of $71.9 million for the quarter ending December 31, 2018. The company did report a loss of $0.07 per share which missed the S&P Capital IQ estimate for a loss of $0.03 per share.
The stock fell over six percent in post-market trading to roughly $109, which could be due to the miss on the loss per share. CEO Justin Glover did say on the company’s earnings conference call that first-quarter sales should be consistent with the fourth quarter, which could be interpreted as not growing. That could also be the reason for the selling. The company is sitting pretty with cash and cash equivalents at $536.9 million.
“2019 was an exceptional and transformative year for GW, led by the successful launch of Epidiolex in the US and approval in Europe. The positive impact this medicine has had on thousands of patients and their families provides a compelling foundation for continued growth in 2020,” said Justin Gover, GW’s Chief Executive Officer. “We also expect 2020 to be an important year for our growing and developing product pipeline beyond Epidiolex as we build on our world leadership in cannabinoid science. We are focused on advancing nabiximols in the US in several indications and clinical programs with other potential products whilst continuing to bring Epidiolex to more patients in the US and Europe.”
The company also outlined several items in the pipeline including Multiple Sclerosis spasticity -3 positive Phase 3 trials completed in Europe with the US pivotal clinical program expected to begin in Q2 2020 to augment existing data package. For schizophrenia (GWP42003) the company has had a positive Phase 2a trial published and Phase 2b trial expected to start in the H1 2020. CBDV in autism has a 30-patient open-label study underway and initial data expected in 2020. The investigator-led 100 patient placebo-controlled trial in autism is underway.