GWPH - Is GW Pharmaceuticals Stock a Buy?
GW Pharmaceuticals (NASDAQ: GWPH) hit paydirt when its crown jewel -- Epidiolex -- became the first cannabidiol-derived drug approved by the U.S. Food and Drug Administration (FDA). Epidiolex is a treatment for seizures in patients with Lennox-Gastaut syndrome (LGS) and Dravet syndrome, both of which are rare forms of epilepsy. After its initial launch in late 2018, Epidiolex started racking up strong and growing sales. However, the drug's sales growth has been decelerating every quarter, which is reflected in GW Pharmaceuticals' revenue growth.
GW Pharmaceuticals' shares are down by about 13% since the launch of Epidiolex in November 2018, whereas the S&P 500 index is up by about 22% over the same period. And with the company's decelerating revenue growth, it is worth wondering whether GW Pharmaceuticals is worth investing in today.
Data Source: GW Pharmaceuticals Investor Presentation -- January 2020.