Yesterday morning, GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) announced the success of its second Lennox-Gastaut Syndrome Phase III trial, evaluating pipeline drug Epidiolex, the biotech firm’s promising cannabis-based drug designed to treat epilepsy. The 20mg/kg dose produced a median 42% reduction in drop seizures compared to a 17% reduction for the placebo.

On the heels of this positive progress, Cowen analyst Phil Nadeau reiterates an Outperform rating on GWPH with a price target of $135, which represents a 7% increase from where the shares last closed.

GWPH’s leading pipeline drug has entered a Phase III program for four types of refractory pediatric seizures: Dravet syndrome, Lennox-Gastaut syndrome, Tuberous Sclerosis Complex, and infantile spasms, the last of which has a Phase III trial anticipated to commence come fourth-quarter of 2016.

Back in March, positive results from the drug’s first Phase III trial in Dravet were first released, and in June, soon followed results from Epidiolex’s first Phase III trial in Lennox-Gastaut. As such, yesterday’s results indicate the drug’s now third successful Phase III trial. Over the summer, the firm discussed with the FDA the possibility of Epidiolex being granted an NDA.

Once launched, Nadeau forecasts an upsurge in worldwide Epidiolex revenue in the ballpark of $260MM for 2018, $570MM for 2019, and rising to $895MM by 2020. The analyst believes, “With three positive Ph. III trials, we expect Epidiolex to be approved during H1:18, and we project worldwide sales of $1.1B in 2021.”

“We expect Epidiolex to launch in the U.S. during H1:18, and be rapidly adopted because of the major unmet need in treatment-refractory epilepsy,” Nadeau concludes.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, four-star analyst Phil Nadeau is ranked #464 out of 4,183 analysts. Nadeau has a 52% success rate and realizes 7.7% in his yearly returns. When recommending GWPH, Nadeau yields 21.2% in average profits on the stock.

TipRanks analytics demonstrate GWPH as a Buy. Based on 6 analysts polled in the last 3 months, 5 rate a Buy on GWPH, while 1 issues a Sell. The consensus price target stands at $136.17, marking an 8% upside from where the stock is currently trading.