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Shares of GW Pharmaceuticals PLC sank more than 12% in the extended session Tuesday, after the cannabinoid drug maker reported better-than-expected revenue from its flagship product, Epidiolex.
GW Pharmaceuticals GWPH, -1.04% reported a third-quarter net loss of $13.8 million, which amounts to 4 cents a share, narrowing from a net loss of $79.9 million, or 23 cents a share, in the year-ago quarter. Revenue rose to $90.9 million from $2.4 million a year ago.
Sales of Epidiolex, the company’s drug that includes a compound found in cannabis to treat some forms of epilepsy, rose to $86.1 million. Analysts polled by FactSet had expected Epidiolex sales of $85.2 million. The company reported no revenue from sales of the drug in the year-ago period, and logged $68.4 million in Epidiolex sales in the second quarter.
“In this first year of launch, we are pleased to report continued Epidiolex revenue growth in the U.S. Receptivity to the introduction of this breakthrough treatment continues to be highly encouraging as a result of positive physician and patient experiences as well as strong payer coverage,” GW Pharmaceuticals Chief Executive Justin Gover said in a statement.
The company said that it received European Commission approval in September and that “commercialization is underway in France and Germany.”
Analysts had expected overall sales of $85.6 million. There were not enough analyst estimates to form a reliable earnings per share consensus.
GW Pharmaceuticals stock has gained 38% this year, as the S&P 500 index SPX, -0.12% has risen 23%. The ETFMG Alternative Harvest ETF MJ, +0.26% has fallen 21% this year.