Zogenix, Inc. (ZGNX) Gain Is GW Pharmaceuticals PLC- ADR (GWPH) Pain


GW Pharmaceuticals logoGW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) shares tumble nearly 9% in Friday’s trading session, following the news that competitor Zogenix, Inc. (NASDAQ:ZGNX) achieved impressive results from a Phase III trial of ZX008 in Dravet syndrome.

GW Pharma expects to complete its U.S. regulatory submission for cannabidiol Epidiolex for treating Dravet syndrome in October. The company also anticipates submitting Epidiolex for European approval in the fourth quarter of this year.

Unfortunately for the cannabinoid drug maker, ZX008’s efficacy data is an impressive win and the drug appears to be a potent anti-epileptic in Dravet’s patients. Specifically, the placebo-subtracted reduction in median seizure frequency for 0.8mg/kg/day ZX008 (55%) was greater than that produced by Epidiolex (26%).

On the ratings front, GWPH stock has been the subject of a number of recent research reports. In a report issued on September 25, Cowen analyst Phil Nadeau reiterated a Buy rating on GWPH, with a price target of $165, which represents a potential upside of 47% from where the stock is currently trading. On August 16, Evercore ISI’s Josh Schimmer initiated coverage with a Buy rating on the stock and has a price target of $154.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Phil Nadeau and Josh Schimmer have a yearly average return of 15.3% and 29% respectively. Nadeau has a success rate of 58% and is ranked #202 out of 4669 analysts, while Schimmer has a success rate of 80% and is ranked #728.

Sentiment on the street is mostly bullish on GWPH stock. Out of 5 analysts who cover the stock, 4 suggest a Buy rating and one recommends to Hold the stock. The 12-month average price target assigned to the stock is $159.50, which implies an upside of 42% from current levels.

GW Pharmaceuticals Plc is a biopharmaceutical company, which engages in the discovery, development, and commercialization of novel therapeutics from proprietary cannabinoid product platform in a broad range of disease areas. The company operates through the following segments: Commercial, Sativex Research & Development, and Pipeline Research & Development. The Commercial segment distributes and sells the commercial products and promotes Sativex through collaborations with pharmaceutical companies for the currently approved indication of spasticity due to multiple sclerosis. The Sativex Research & Development segment seeks to maximize the potential of Sativex through the development of new indications. The Pipeline Research & Development segment seeks to develop cannabinoid medications other than Sativex, which are using the proprietary cannabinoid technology platform.