Please ensure Javascript is enabled for purposes of website accessibility

GW Pharmaceuticals Beats on Revenue, Bottom Line for Q4

By Eric Volkman - Feb 16, 2021 at 6:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's net loss was far narrower than many expected.

GW Pharmaceuticals (GWPH) has released what is very possibly its final earnings report as an independent company.

On Tuesday, the maker of drugs derived from cannabis published its fourth-quarter results, which revealed that it earned $148 million in revenue for the period. That was nearly 36% higher on a year-over-year basis. But its net loss deepened across that stretch of time, to just over $29 million ($0.08 per share) from the fourth-quarter 2019 deficit of nearly $25 million.

Stethoscope placed next to a marijuana leaf.

Image source: Getty Images.

On average, analysts tracking the stock were estimating a far deeper net loss of $0.60 per share, and revenue of just over $143 million.

Nearly all of GW Pharmaceuticals' revenue for the period derived from its top drug, Epidiolex, which treats seizures arising from two rare forms of childhood epilepsy, plus the genetic disorder tuberous sclerosis complex. 

GW Pharmaceuticals said in its earnings release that the global market for the drug, which received its initial Food and Drug Administration approval in June 2018, is set to expand. It recently won approval for pricing and reimbursement in Germany, Finland, and Israel, and should hit the market in Spain, France, and Italy by the end of June.

Earlier this month, Ireland-based Jazz Pharmaceuticals reached a deal to acquire GW Pharmaceuticals for $7.2 billion. Jazz was clearly eager to own the company, as that $7.2 billion (about $220 per share) was roughly 50% higher than GW Pharmaceuticals' share price the day before the acquisition was announced. The transaction is expected to close at some point in the second quarter.

Because that deal has effectively set GW Pharmaceuticals' share price for the remainder of its existence as a stand-alone company, the quarterly results didn't move the shares much. They slipped by 0.2% on Tuesday, a slightly steeper fall than that of the S&P 500 index.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GW Pharmaceuticals plc Stock Quote
GW Pharmaceuticals plc
Jazz Pharmaceuticals plc Stock Quote
Jazz Pharmaceuticals plc
$160.04 (0.92%) $1.46

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.