GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) hosted an analyst meeting last night at the American Epilepsy Society (AES) meeting that was met with marked investor enthusiasm, as shares took a 5% upswing yesterday. Particularly positive for the firm, GW shared highlights from its poster presentations, revealing results from cannabis-based pipeline drug Epidolex in Dravet and Lennox-Gastaut (LG) trials.
Praising the results, Cowen analyst Phil Nadeau reiterates an Outperform rating on shares of GWPH with a $135 price target, which represents a just under 15% increase from current levels.
For Nadeau, “The results continue to look strong, with clear efficacy across a number of measures and no concerning side effects. We continue to expect Epidiolex to achieve >$1B in revenue by 2021, and think that GWPH is undervalued for its potential.”
At the meeting, the firm has noted it continues to be on track to submit the NDA for Epidiolex for both Dravet and LGS by the close of the first half of 2017. The analyst highlights the discussion from three physician key opinion leaders (KOLs) at the conference, particularly their positive expectations for Epidiolex, as they anticipate future wide use in patients with treatment refractory epilepsy.
In fact, the analyst underscores, “The physicians expect Epidiolex to have a prominent place in treatment because of its novel mechanism, clear efficacy, and benign side effect profile.”
Overall, “Some of the most prominent side effects in Epidiolex’s Ph. III trials were gastrointestinal adverse events. The physicians noted that these tend to be mild, are transient and get better with time, and that only a relatively small proportion of patients discontinue therapy because of them. The physicians’ commentary increases our confidence that Epidiolex will receive FDA approval, and be widely used in the treatment of refractory epilepsies,” Nadeau surmises.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, one-star analyst Phil Nadeau is ranked #3,273 out of 4,256 analysts. Nadeau has a 39% success rate and loses 1.0% in his annual returns. However, when recommending GWPH, Nadeau earns 22.7% in average profits on the stock.
TipRanks analytics indicate 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 42%, the stock’s consensus target price stands at $167.00.
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