GW Pharmaceuticals gave earnings today and I figured it was a good stock to do some equity research on.
and announced that they had ...
"GW Pharmaceuticals plc (AIM: GWP) today announces the initiation of the Phase III clinical trials programme of Sativex® in the treatment of pain in patients with advanced cancer, who experience inadequate analgesia during optimized chronic opioid therapy. This indication represents the initial target indication for Sativex in the United States."
The results were well received by the market and GW Pharmaceuticals continues to demonstrate that they can get Sativex approved across a range of jurisdictions. My view is that the risk here is not with efficacy nor safety but rather with regards pricing. Will national medical bodies-already facing cutback pressures due to public deficit reduction plans- be willing to pay significantly in order to supply patients with a cannabinoid based treatment such as Sativex?
Similarly, there are question marks as how to how the US would view a medicine based on cannabis. Similarly, longer term, if cannabis was widely legalised then I suspect there could be pricing pressure for Sativex. I point out the risks, because, actually, GW has made great strides in demonstrating efficacy and safety for pain sufferers with Multiple Sclerosis and Cancer.
I decided to look closer at the issues here.