Cantor Raises GW Pharma's Target To $182 Following Second Successful Phase 3 Trial

Shares of GW Pharmaceuticals PLC GWPH were trading higher by more than 17 percent Monday, but analysts at Cantor Fitzgerald believe the surge has just begun.

GW Pharma announced a second successful pivotal trial in an ongoing Phase 3 trial which explores Epidiolex, its lead cannabinoid product.

Elemer Piros, Ph.D., Cantor Fitzgerald's analyst, noted that GW Pharma's trial announcement was essentially a "carbon copy" of the results obtained in its first trial in June. The drug "worked in a highly refractory patient population on top of additional drugs, beating placebo by a wide margin."

Related Link: Why This Epidiolex Trial Was Different

The analyst added, "At study entry, patients have already failed seven other drugs and experienced a drop seizure frequency of 85/month. During the trial patients (n=225) were taking, on average, three additional drugs plus two doses of Epidiolex or placebo. Fourteen weeks after starting treatment, seizure frequency was reduced by 17% in the placebo group vs. by 37% (p=0.0016) in the 10mg/kg arm and by 42% (p=0.0047) for those who took the 20mg/kg dose."

With that said, Piros suggested GW Pharma's Epidiolex program has now "further de-risked" and the probability of approval from the necessary regulatory agencies has risen to 90 percent from 80 percent. As such, the analyst reiterated a Buy rating on the stock with a price target raised to $182 from a previous $165.

The analyst's price target is based on a "a probability-adjusted net present value of cash flows due to Epidiolex, a value attributed to the platform and projected cash."

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorLong IdeasPrice TargetAnalyst RatingsTrading IdeasCannabinoid DrugsCantor FitzgeraldElemer PirosEpidiolexGW Pharmaceutical
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!