Financial Trading Blog
Stock of the day 01/12/2014 – GW Pharmaceuticals
The biopharmaceutical company, who saw its multiple sclerosis treatment Sativex became the first natural cannabis plant derivative to receive full market approval, releases its 2014 full earnings this Tuesday. The company has had a very good 2014, with its yearly low arriving in January at 181.25; by July share prices reached 530.25, more than double the year’s open.
The pharmaceutical company could not manage to maintain this peak price, being hit like many UK companies by the FTSE’s mid-October slump to fall to 299.35. Whilst it rallied to reach a post-October high of 442.9 in November, and opened this week at 419.25, it fell 3.6% on Monday to hover around the 406 mark.
Its last earning release came in August, where share prices fell 2.61% to 410.64 on the day of the announcement. Yet this drop did not affect the general period of stability that occurred between mid-July and mid-October. These Q3 figures saw revenue of £7.6 million, down from £7.3 million same period 2013, with losses of £6.9 million. However, this loss was due to GW Pharmaceuticals increasing funding for Research and Development in order to push through its epilepsy treatment Epidiolex.
GW Pharmaceuticals will be looking to Sativex to drive fourth quarter profits, as the company forecasts revenue of £9.27 million. Recently, Zacks Investment Research upgraded the stock to ‘outperform’ from ‘neutral’, and overall, out of the seven analysts that cover the stock, six have given it a ‘buy’ rating. With multiple projects in the pipeline for 2015, including the aforementioned Epidiolex, updates surrounding R&D may be a better indicator of health than the company’s revenue. Regardless, GW Pharmaceuticals will be looking to solidify its strong showing on the markets this year by at least hitting its Sativex-inspired forecasts tomorrow morning.
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