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A Look into GW Pharmaceuticals’ Revenue Trends

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Jan. 10 2019, Published 2:47 p.m. ET

Revenue trends

In the fourth quarter of fiscal 2018, GW Pharmaceuticals (GWPH) generated revenues of $2.42 million compared to $2.45 million in the same period the prior year, reflecting ~1% YoY growth. In fiscal 2018, GW Pharmaceuticals’ net revenues grew ~15.75% YoY to reach $12.74 from $11.00.

In the fourth quarter of 2018, GW Pharmaceuticals generated revenues of $10.5 million from product sales compared to $8.0 million in the same period the prior year, reflecting ~32% YoY growth.

Wall Street analysts estimate that GW Pharmaceuticals will generate revenues of $8.8 million in the first quarter of fiscal 2019, which represents ~15.75% YoY growth. Analysts also estimate that GW Pharmaceuticals’ net revenues in fiscal 2019 will be around $122.66 million.

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GW Pharmaceuticals is strengthening its supply chain of Epidiolex. GW Pharmaceuticals’ regulatory filing for approval of Epidiolex in the European market is under review by the European Medicines Agency (or EMA). The company anticipates the EMA’s decision by the first quarter of fiscal 2019. The approval of the drug in the European market could significantly boost the revenue growth of GW Pharmaceuticals.

Peers’ performance

Cara Therapeutics (CARA) and Insys Therapeutics (INSY), GW Pharmaceuticals’ peers in the medical cannabis market, reported revenues of $5.0 million and $18.35 million, respectively, in the third quarter of fiscal 2018.

Wall Street analysts estimate that Cara Therapeutics and Insys Therapeutics will report net revenues of $10.9 million and $83.74 million, respectively, in fiscal 2018.

The revenue growth of GW Pharmaceuticals, Cara Therapeutics, and Insys Therapeutics could boost the ETFMG Alternative Harvest ETF (MJ). GW Pharmaceuticals, Cara Therapeutics, and Insys Therapeutics make up ~5.95%, ~1.52%, and ~1.64% of MJ’s total portfolio holding.

In the next article, we’ll discuss GW Pharmaceuticals’ other earnings and operational expenditure trends.

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