Piper Jaffray Bullish on GW Pharmaceuticals PLC- ADR (GWPH) Following New AES Data


GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) shares are on a 6% ascent today after the biotech firm presented additional Epidiolex data from the first Dravet and Lennox-Gastaut studies at the 70th American Epilepsy Society (AES) annual meeting.

Additionally, the firm released fourth-quarter fiscal fourth-quarter earnings today.

With the firm’s promising cannabis-based drug for treating rare forms of epilepsy sustaining a well-tolerated safety profile and the prediction that “real world experience [is] likely to be better,” on back of the new data, Piper Jaffray analyst Joshua Schimmer reiterates an Overweight rating on shares of GWPH with a $147 price target, which represents a 23% increase from current levels.

The analyst finds the new data encouraging, a further support of both approvability as well as broad use, explaining, “Earlier this year, Epidiolex met the primary endpoint of median seizure reduction in both LGS and DS with vs placebo (p = 0.01), and additional efficacy data presented at the conference reinforces the benefit, in our view.”

Schimmer believes, “Overall, the totality of the data indicate an approvable drug, with secondary analyses supportive of a meaningful benefit with a well tolerated profile in a highly refractory patient population. While the company did not present Onfi (clobazam) interaction data, all signs point to efficacy independent of clobazam and an approvable profile.”

Additionally, the firm released fiscal fourth-quarter earnings today and will be hosting an analyst/KOL event this evening.

“We look forward to more details on the Epidiolex profile and how this product may ultimately be used in clinical practice,” Schimmer surmises.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, Joshua Schimmer is ranked #4,100 out of 4,240 analysts. Schimmer has a 37% success rate and faces a loss of 6.3% in his annual returns. However, when suggesting GWPH, Schimmer gains 18.4% in average profits on the stock.

TipRanks analytics demonstrate GWPH as a Strong Buy. Out of 6 analysts polled by TipRanks in the last 3 months, all 6 are bullish on GW Pharmaceuticals stock. With a return potential of nearly 39%, the stock’s consensus target price stands at $167.00.screen-shot-12-05-16-at-10-11-pm

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