Piper Jaffray analyst Joshua Schimmer was out today with some commentary on GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), following the news that the Drug Enforcement Administration (DEA) will continue to classify marijuana as a Schedule I drug, keeping the federal ban on medical marijuana use in place. In particular, the DEA cites a lack of FDA approved drugs, no known drug chemistry, no adequate and well-controlled studies, no acceptance by qualified experts and no widely available scientific evidence.

Schimmer commented, “While some have highlighted this a potential negative for GWPH, there seems to be little basis for that view. Epidiolex will almost certainly move to Schedule II or more likely III and as such, medical marijuana will remain harder to access as Schedule I. We expect the DEA to reschedule CBD within 90 days of FDA approval and do not anticipate this a major gating step for launch of Epidiolex.”

“We continue to believe that Epidiolex is demonstrating a unique, well tolerated and efficacious profile in a heavily treatment refractory patient population with high unmet need. Yes we do need to see the next P3 trial readout and full dataset to gauge the specific level of activity without clobazam background but the company has already indicated the effects size without clobazam is meaningful,” the analyst added.

Schimmer reiterated an Overweight rating on shares of GW Pharma, with a price target of $147, which represents a potential upside of 68% from where the stock is currently trading.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Schimmer has a yearly average return of -7.0% and a 40% success rate. Schimmer has a 6.5% average return when recommending GWPH, and is ranked #3972 out of 4110 analysts.

Out of the 7 analysts polled by TipRanks, 6 rate GW Pharmaceuticals stock a Buy, while 1 rates the stock a Sell. With a return potential of 48%, the stock’s consensus target price stands at $129.67.

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