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Epidiolex Launch Expected to Push Up GW’s Operating Expenses

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Dec. 31 2018, Updated 7:32 a.m. ET

Operating expenses guidance

On its fiscal 2018 fourth-quarter earnings conference call, GW Pharmaceuticals (GWPH) projected its operating expenses for the quarter that ends on December 31 to fall to the range of $90 million–$100 million, higher than the $83 million it reported in the previous quarter.

According to the company’s earnings conference call, this projection is attributable to the rising expenses associated with the commercial launch of Epidiolex in the United States coupled with preparations for the drug’s regulatory approval and commercial launch in the European market. Additionally, GW Pharmaceuticals continues to focus on allocating resources to its R&D (research and development) pipeline.

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Expense projections

Analysts expect GW Pharmaceuticals to report SG&A (selling, general, and administrative) expenses of $179.14 million in 2019, a YoY (year-over-year) rise of 26.31%. The company is expected to report SG&A expenses of $203.76 million in 2020, a YoY rise of 13.75%. Analysts expect GW Pharmaceuticals’ 2021 SG&A expenses to be $221.23 million, a YoY rise of 3.66%.

Analysts expect GW Pharmaceuticals’ SG&A expenses to be $50.45 million in the quarter that ends on December 31, a YoY rise of 115.18%.

Analysts expect GW Pharmaceuticals to report R&D expenses of $144.01 million in fiscal 2019, a YoY fall of 6.32%. The company is also expected to report R&D expenses of $152.44 million in 2020, a YoY rise of 5.85%. Analysts expect GW Pharmaceuticals’ 2021 R&D expenses to be $180.22 million, a YoY rise of 18.22%.

Analysts expect GW Pharmaceuticals’ R&D expenses to be $38.32 million in the quarter that ends on December 31, a YoY fall of 6.11%.

In the next article, we’ll discuss GW Pharmaceuticals’ sales and marketing strategy for Epidiolex for future quarters.

 

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